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Toshiba Signs Memorandum of Understanding on Cooperation in Thermal Power Generation Business with Babcock & Wilcox
Tokyo, Japan, May 10, 2011 — Toshiba Corporation (TOKYO: 6502) today announced that it has signed a memorandum of understanding (MOU) with Babcock & Wilcox Power Generation Group, Inc. (B&W PGG), a business unit of The Babcock & Wilcox Company (B&W), a U.S.-based leading global supplier of power generation equipment, to enhance their cooperation on strategic project opportunities in the thermal power generation business.
Under the MOU, Toshiba and B&W PGG will explore the joint development of advanced next generation thermal and solar power technologies for the world market, as well as development in the U.S., where Toshiba has maintained the number one share in STG for eight consecutive years*1 and where B&W PGG has market leadership in the supply of steam generation systems. The parties will also seek to establish a strategic and mutually complementary relationship to consider collaboration in India, a developing market where large power demand expansion is expected, making use of Toshiba's steam turbine and generator (STG) factory and B&W PGG's joint venture boiler factory which are both now under construction in India. Toshiba and B&W PGG will also examine collaboration on strategic project opportunities in other parts of Asia.
Thermal power systems, which burn fossil fuels such as coal and natural gas, will continue to be a mainstay of electricity generation in the mid- to long-term. There are significant synergies between Toshiba's and B&W PGG's businesses, as B&W PGG has developed advanced boiler technology and supplied a worldwide installed boiler capacity of more than 300,000 megawatts. Cooperation supporting effective utilization of both companies' resources is expected to present wider business opportunities to both parties.
Toshiba will further aim to secure plant maintenance business in the U.S. and new plant construction business in India, where demand for electricity is growing fast. In addition, Toshiba will promote enhanced efforts to reinforce its presence in other markets around the world, including Asia, where demand for supercritical thermal power systems is strong.
*1 Source: Toshiba
About B&W
Headquartered in Charlotte, N.C., The Babcock & Wilcox Company is a leader in clean energy technology and services, primarily for the nuclear, fossil and renewable power markets, as well as a premier advanced technology and mission critical defense contractor. B&W has locations worldwide and employs approximately 12,000 people, in addition to approximately 10,000 joint venture employees. Learn more at www.babcock.com.
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 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 730 companies, with 204,000 employees worldwide and annual sales surpassing 6.2 trillion yen (US$75 billion). Visit Toshiba's web site at
www.toshiba.co.jp/index.htm.