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Toshiba-JSW form JV to mfg, mkt steam turbines & generators Print E-mail
Written by Viswanath   
Saturday, 10 May 2008
Mumbai: Toshiba Corporation and JSW Group today announced that Toshiba and JSW, one of India?s well-known business groups, have agreed to establish a joint venture company to manufacture and market super-critical steam turbines and generators for thermal power plants in India.

Under the terms of an agreement between the companies, Toshiba and JSW will establish a joint venture in June 2008.

The new company will have an initial capitalization of US$50 million, 75% held by Toshiba Group and 25% by JSW Group, to be held by two key group companies, JSW Steel Limited  5% and JSW Energy Limited  20%. The companies are now deciding the location of the headquarters and manufacturing facilities, and will announce the details in due course. The manufacturing operations are expected to start in September 2009.

Toshiba has already established a strong presence in the Indian market, and in August 2007, won a major contract to supply five large super-critical steam turbines and generators to Tata Power, India?s largest private power sector utility. The joint venture will further enhance Toshiba's presence and, by deploying Toshiba's cutting-edge technology for steam turbine generators, will become a cost-efficient, strategic manufacturing site for the growing steam turbine and generator market.

The scope of the JV includes design, manufacture, marketing and maintenance services of mid- to large-sized steam turbines and generators, ranging in size from 500-megawatts (MW) to 1,000MW, that will be deployed in highly efficient super-critical thermal power plants.

While announcing the joint venture, Mr. S. S. Rao, Joint Managing Director & CEO, JSW Energy Limited said, "This alliance is aimed at giving us an advantage in the Indian energy sector. The JV is aimed at responding to expanding electricity demand in tandem with India's economic growth."

"This investment is a significant step for Toshiba, one that will give us a firm foothold in the rapidly growing Indian market for thermal power generation,? said Mr. Atsuhiko Izumi, Executive Vice President of Toshiba's Power Systems Company. "Toshiba is already the global leader in the market for super-critical steam turbines and generators, which are now moving into the mainstream of thermal power generation in India. By collaborating with JSW, a highly capable and respected business group, and an emerging force in the Indian steel production and independent power production, we want to rapidly build up our presence in a fast growing market and to contribute to securing a stable electricity supply in India."

The JV partners are now seeking a site of some 400,000 square meters on which to develop facilities, and expect to invest some US$250 million in plant and manufacturing equipment. Keihin Operations, Toshiba's power equipment production facility in Yokohama, Japan, will complement the JV's effort to ramp-up the manufacturing process in the beginning, as the JV aims to establish an independent production scale of 3,000MW a year. Marketing activities will start in June 2008.

 
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