TOKYO — Toshiba Plant Systems & Services Corporation (Securities code: 1983; first section TSE; hereafter TPSC) and JFE Engineering Corporation have signed an agreement to collaborate on the design, manufacture and sale of steam turbines, a key component in industrial power generation facilities. Under the agreement, TPSC will be supplied with steam turbines of up to 100 MW output for use in Thermal Power System Business by both Toshiba Corporation (Securities code: 6502; first section TSE ; hereafter TOSHIBA) and JFE Engineering. For JFE Engineering, the agreement represents an opportunity to expand the application of its turbines into the high-pressure, high-efficiency and high-capacity domains. Collaboration by the two companies will enable them to supply (design, manufacture, procure, install) optimized industrial power generation systems to a wide range of customers in Japan and other countries.
In the domestic market, demand for turbines is primarily for in-house power generation by materials sectors such as pulp/paper, steel and chemicals; overseas, they are in particularly high demand in Southeast Asia for thermal power plants and other social infrastructure projects. TPSC has served as the main contractor for the TOSHIBA group in these projects, supplying primarily TOSHIBA -manufactured steam turbines to customers around the world. The addition of JFE Engineering steam turbines of up to 100 MW output will round out its lineup, enable it to meet a wider range of industrial thermal power needs and expand its potential order bookings.
JFE Engineering has a proven track record in manufacturing steam turbines for waste incineration plants and in-house generation facilities. Under the agreement, it will receive high-pressure steam turbine technology from TOSHIBA that will enable it to boost pressure from the current 10 MPa to 14 MPa. The result will be expanded scope of application for its turbine products into the high-pressure, high-efficiency, high-capacity generation domain, increasing its business at home and abroad.
This alliance between TPSC , which seeks to expand its share in Thermal Power System Business , and JFE Engineering, which seeks to expand its industrial machinery business, represents a strong strategic move forward for both companies.
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