MHI Receives Order from Korea's Pocheon Power for

Tokyo, Apr 20, 2011 - (JCN Newswire) - Mitsubishi Heavy Industries, Ltd. (MHI), in collaboration with Korea's Doosan Heavy Industries & Construction Co., Ltd., has received an order for major components for two trains of a natural gas-fired gas turbine combined cycle (GTCC) power generation system being built by Pocheon Power Co., Ltd., a Korean independent power producer (IPP). MHI also signed a long-term maintenance service contract for the power plant as well as an agreement to invest in Pocheon Power. MHI received the order, which calls for provision of four M501GAC gas turbines and four generators, from Daelim Industrial Co., Ltd., which is responsible for the power plant construction project. MHI's investment in Pocheon Power will be a 6.7% stake.

Pocheon Power's GTCC plant will have the capacity to generate 1,600 MW (megawatts), placing it among Korea's largest. The plant will be built in Pocheon, approximately 50 kilometers northeast of Seoul, the capital, and it will play a part in supplying electricity to the metropolitan area. The first and second trains of the power plant are scheduled for completion by the end of May and November 2014, respectively.

Of the major power plant components on order, MHI will manufacture and supply three of the gas turbines; it will also dispatch technical advisers. Doosan will manufacture the other gas turbine under license from MHI, and other auxiliary equipment. Mitsubishi Electric Corporation will be responsible for the four generators. All components are slated for delivery between July and November 2012.

Under the long-term service agreement, covering a period of 16 years, signed between MHI and Pocheon Power, MHI will provide maintenance and management services for all four gas turbines and perform replacement and repair, when necessary, of parts that are exposed to very high temperatures.

In addition to Daelim Industrial, other investors in Pocheon Power will now include Taeyoung Engineering and Construction Co., Ltd., investment funds affiliated with the Korea Development Bank, and MHI. Daelim Industrial is one of Korea's major construction companies. It engages in civil engineering works and construction of bridges, expressways, tunnels, ports/harbors and power generation facilities; it also produces petrochemical products.

Doosan Heavy Industries & Construction is a leading company in Korea's heavy industry sector. It encompasses six business categories: power generation, water, castings & forgings, construction, material handling equipment and green energy. Since 2007, MHI has licensed large-size gas turbine technology for its M501G, M701F, M501F and M701DA. As M501GAC technology has not previously been licensed, MHI will conclude a new licensing agreement with Doosan; it will also provide parts exposed to high temperatures