News Releases
Toshiba and IHI Sign Definitive Agreement on JV to Manufacture Turbine Parts for Nuclear Power Plants
Tokyo, Japan, July 23, 2010— IHI Corporation (TOKYO: 7013) and Toshiba Corporation (TOKYO: 6502) today announced that they have signed a definitive agreement on the formation of a joint venture to manufacture steam turbine parts for nuclear power plants for the domestic and overseas markets. The agreement is based on a memorandum of understanding between the companies executed in April 2010, and the two companies will now start to make necessary arrangements toward establishing the joint venture in January 2011.
Under the definitive agreement, the new joint venture company, Toshiba IHI Power Systems Corporation, will be established at IHI's Headquarters Representative's Office, Yokohama District. The company will manufacture casings and nozzles, major components of steam turbines for both boiling-water reactors (BWR) and pressurized-water reactors (PWR).
The collaboration will allow IHI to extend its business to the manufacture of turbine components, alongside its current manufacture of nuclear reactor pressure vessels and containment vessels. Toshiba will enhance its steam turbine manufacturing capacity and strengthen its nuclear power plant business supply chain.
The growing recognition of nuclear power as a solution to long term energy security and a counter to climate change from rising CO2 levels is driving demand for nuclear power plants. IHI and Toshiba have an established relationship and record of success in the construction of BWR plants and in maintenance services for installed equipment for BWR, and both companies are also reinforcing their efforts to promote business in the PWR market. IHI is a shareholder in Westinghouse Electric Company (WEC), the global leader in PWR power plants, which is majority owned by Toshiba.
Outline of the New Joint Venture
| Name: | Toshiba IHI Power Systems Corporation |
| Location: | 1, Shin Nakahara-Cho, Isogo-ku, Yokohama, Kanagawa Prefecture, Japan (within IHI's Headquarters Representative's Office, Yokohama District) |
| Established: | January 2011 |
| Capital: | 310 million Japanese yen |
| President: | Not yet determined |
| Business: | Manufacture of steam turbine parts (casings and nozzles) for new nuclear power plants and for maintenance of installed equipment |
| Ownership: | IHI 52%, Toshiba 48% |
About IHI
IHI, established in 1853, is a multinational leader in providing energy and chemical plants, physical distribution systems and steel structures, aero-engine and space technology, industrial machinery, shipbuilding and marine engineering, and mass-produced machinery. With annual net sales of nearly $13 billion (U.S. dollars) and more than 24,000 employees, IHI contributes to the stable supply of electric power by providing the primary equipment for thermal and nuclear power systems.
About Toshiba
Toshiba is a world leader and innovator in pioneering high technology, a diversified manufacturer and marketer of advanced electronic and electrical products spanning information & communications systems; digital consumer products; electronic devices and components; power systems, including nuclear energy; industrial and social infrastructure systems; and home appliances.
Toshiba was founded in 1875, and today operates a global network of more than 740 companies, with 204,000 employees worldwide and annual sales surpassing 6.3 trillion yen (US$68 billion). Visit Toshiba's web site at www.toshiba.co.jp/index.htm.