Mitsui & Co., Ltd. ("Mitsui"; Head office: 2-1, Ohtemachi 1-Chome, Chiyoda-ku, Tokyo, Japan; President: Masami Iijima) hereby announces that Mitsui and Toyo Engineering Corporation ("Toyo"; Head office: Narashino-shi, Chiba Prefecture, Japan; President: Yutaka Yamada) has entered into the engineering, procurement and construction contract for the power generation project with the project companies wholly owned by Gulf JP Co., Ltd., an independent power producer in Thailand, principally owned by Electric Power Development Co., Ltd. ("J-Power").
The Purpose of this project is to newly construct seven gas fired combined cycle power plants with a capacity of 110MW x 6 and 120MW x 1 at the respective sites located in the suburbs of Bangkok.
The construction contract is awarded to Mit-Power (Thailand), Limited, a wholly owned subsidiary of Mitsui, while the supply contract is awarded to Toyo.
Construction is to commence from October, 2010 in sequence and commercial operation is expected to commence after completion of each project by October 2013.
Taking advantage of its expertise in the power plant business globally, such as Kaeng Khoi 2 gas fired combined cycle power plant in Thailand, Mitsui has been highly valued in such business fields and awarded an order of this Project.
The Thai government instituted the small power producer program
("SPP Program")* at the aim of making use of high quality energy.
The companies approved by the The Thai government could each obtain a guarantee
to sell to the Electricity Generating Authority of Thailand ("EGAT")
up to 90MW power. The power plant of this project could sell the electricity
to EGAT based on the SPP Program and further sell 20MW to 30MW excess electricity
to general companies around the site. A vigorous power demand is expected
centering on the manufacturing town in Bangkok thanks to the developing economy,
and two or more tenders for power-generation activities rights have been
officially announced lately in Thailand. Mitsui plans to participate in the
coming new projects in Thailand positively in the future.
Mitsui considers infrastructure business such as power generation project as one of the most important business areas and will continue to propose and realize superb power generation projects in accordance with the increasing power demand all over the world.
In addition to the hydro carbon projects, Toyo considers infrastructure business like power, water and transportation projects as business fields to be newly focused on, and is determined to concentrate on power generation projects in developing countries such as Thailand.
* SPP (Small Power Producers) Program
A program that is aimed at high-efficiency energy utilization with promotion of renewable and small hydro power generation projects, constituted in Thailand in 1992. The business developer who is authorized by The Thai government is guaranteed to sell up to 90 MW power to EGAT and can also sell extra power and steam to the neighboring industrial users.
This press release includes forward-looking statements about Mitsui. These forward-looking statements are based on the current assumptions and beliefs of Mitsui in light of the information currently available to it, and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. The risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest annual report on Form 20-F, which has been filed with the U.S. Securities and Exchange Commission.
This press release is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.