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Toshiba JSW to manufacture steam turbines and generators in Chennai
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Written by Krishna Kumar   
Wednesday, 08 July 2009

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Chennai: Toshiba JSW Turbine and Generator Pvt. Ltd., a joint venture between Toshiba Corporation (TOKYO: 6502) and JSW has today signed a Memorandum of Understanding (MOU) with the government of Tamil Nadu, allowing the company to lease land for the construction of manufacturing facilities on a site in Chennai.

Toshiba JSW expects to invest some US$160 million in plant and manufacturing equipment over 5 years from fiscal year 2009. The company will now begin to recruit staff, and expects to have 500 employees by 2014.

Located about 18km north of downtown Chennai the site has a ground area of some 400,000 square meters. Facility construction is scheduled to start in this month, and manufacturing is expected to start in January 2011.

Keihin Operations, Toshiba's power equipment production facility in Yokohama, will support Toshiba JSW in ramping up manufacturing, and in working toward establishing an independent production scale of 3,000MW a year. Toshiba JSW anticipates sales of US$400 million by the end of fiscal year 2015.

Established in September last year, Toshiba JSW will manufacture and market mid-sized to large-sized steam turbines and generators, ranging in size from 500-megawatts (MW) to 1,000MW, for highly efficient super-critical thermal power plants in India.

Outline of Toshiba JSW Turbine and Generator Pvt. Ltd.

Location:                    Chennai, Tamil Nadu, India
Established:               September 2008
Capital:                       2.2 billion in Indian rupees (approximately US$50 million)
Ownership:               Toshiba Group 75%, JSW Energy 20%, JSW Steel 5%
Managing Director:     Itaru Ishibashi
Employee:                  Approximately 500 (in 2014, plan)
Business:                   Design, manufacture, marketing and maintenance services for steam turbines and generators

With support from the government of Tamil Nadu, Toshiba will build a state-of-the-art heavy equipment manufacturing facility in Chennai, and hopes to contribute to the further development of local industry and to help India in its efforts to promote stable electricity supply.

Strong Growth in the Indian Market for Thermal Power Generation Equipment

Driven by strong economic growth, the Indian power generation equipment market is expected to see demand growth of 15,000-16,000 MW a year for the next decade, according to the Eleventh (2007-2012) and Twelfth (2012-2017) Five- Year National Electricity Plans published by the Indian government. Coal-fired thermal power stations will account for over 60 percent of the capacity growth, far surpassing other energy sources, and 80 percent of those power stations will be highly efficient super-critical thermal power plants.

Toshiba India Private Ltd. to establish new in-house company in Gurgaon

Consistent with its long-term growth strategy of enhancing its thermal power plant business in India, Toshiba India Private Ltd. will establish a new in-house company in Gurgaon, Haryana state in August, which will initially provide engineering capabilities for thermal power plants in India. With time, the new company is expected to provide a full engineering, procurement and construction (EPC) functions for the thermal and hydro power plant business in India, and to support customers in Southeast Asia and the Middle East.

The new company will work closely with Toshiba JSW and with another Toshiba Group company in India, TPSC (India) Private Limited in Hyderabad, Andhra Pradesh, a wholly owned subsidiary of Toshiba Plant Systems & Services Corporation that undertakes construction of power plants, and will be charged with channeling Toshiba's comprehensive capabilities in thermal power plant toward meeting growing demand in India.

 
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