Information contained in this news release is current as of the date of the press announcement, but may be subject to change without prior notice.
July 7, 2010
Tokyo, July 7, 2010 --- Hitachi, Ltd. (NYSE:HIT / TSE:6501) today announced that together with Daelim Industrial Co., Ltd., one of South Korea's largest construction firms, it has been selected as the first negotiable bidder for two boilers for ultra super critical (USC) coal-fired thermal power plants for the No. 9 and No. 10 units of the Dangjin Power Plant by Korea East-West Power Co., Ltd. These will be South Korea's first 1,000 MW-class (1 GW) thermal power plants. Hitachi is continuing with final negotiations toward concluding an agreement before the end of July 2010.
In South Korea, demand for electricity is rising steadily in line with the country's economic growth, and is expected to continue increasing going forward. In light of this demand, South Korea has plans to construct new power plants to increase its total power generation capacity of approximately 76 GW today by approximately 24 GW by 2020.
Hitachi boasts a technological edge in USC coal-fired thermal power plants that control CO2 emissions while enhancing generation efficiency by increasing the steam pressure and temperature inside boilers. Up to now, Hitachi has won orders for 8 power plants in Japan and 23 overseas. In 2004, Hitachi won an order for two 870 MW-class steam turbines and generators for the No. 3 and No. 4 units of the Yonghung Thermal Power Plant, and has since continued to step up order-getting activities in the South Korean market.
The new plants will be located approximately 70 km to the southwest of Seoul. The No. 9 and No. 10 units of the Dangjin Power Plant will employ the latest USC technologies. With a power generating capacity of 1,000 MW each, the two plants will be the largest thermal power generation facilities in South Korea. Plans call for the No. 9 and No. 10 units to begin operations at the end of December 2015 and end of June 2016, respectively. Hitachi will be responsible for major equipment such as the boilers and DeNOx catalysts, while Daelim Industrial will be responsible for ancillary equipment. If Hitachi officially receives the order, it would represent a successive order in a tender for a coal-fired thermal power plant contract in South Korea.
Besides securing this order through ongoing negotiations, Hitachi will endeavor to expand orders for coal-fired thermal power plants in South Korea, where many more plants are expected to be built in the future.
Hitachi, Ltd., (NYSE: HIT / TSE: 6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 360,000 employees worldwide. Fiscal 2009 (ended March 31, 2010) consolidated revenues totaled 8,968 billion yen ($96.4 billion). Hitachi will focus more than ever on the Social Innovation Business, which includes information and telecommunication systems, power systems, environmental, industrial and transportation systems, and social and urban systems, as well as the sophisticated materials and key devices that support them. For more information on Hitachi, please visit the company's website at http://www.hitachi.com.
