Toshiba and TEPCO Establish Joint Venture for Global Power Transmission and Distribution Business
Tokyo Electric Power Company
TOKYO — Toshiba Corporation (TOKYO:6502, Toshiba) and Tokyo Electric Power Company, Inc. (TOKYO:9501, TEPCO) today announced that they have signed an agreement to establish T. T. Network Infrastructure Japan Corporation, a joint venture that will undertake the engineering support, operation and service business of power transmission and distribution (T&D) systems in overseas markets. The new company will be established on September 2 and be capitalized at 100 million yen (US$1 million, Toshiba: 85.1%, TEPCO: 14.9%).
T. T. Network Infrastructure Japan will integrate Toshiba's technologies in power transformation and power grid solutions with TEPCO's know-how in grid planning, system design, operation and maintenance, and will provide comprehensive T&D solutions in overseas markets.
Toshiba's global organization to support the T&D business includes Swiss-based subsidiary, Landis+Gyr, the world's number 1 in the smart meter market. By adding TEPCO's expertise in T&D management and operation to these capabilities, the new company will target a wide range of markets, from advanced nations to emerging economies, including India and countries in Southeast Asia and Latin America.
T. T. Network Infrastructure Japan will provide engineering support for overseas T&D infrastructure projects, initially those promoted by Toshiba. The company will develop a new, community-based business model, offering solutions proposals from consulting and system supply through to construction, operation and maintenance.
TEPCO recently entered into a basic agreement with Toshiba under which Toshiba will be a system integrator in the construction of a smart meter communication system linking 27 million households, the world's largest network of its type. Toshiba will further strengthen collaboration with TEPCO through the new company and its business, allowing it to promote new services derived from information from smart meters, and to expand its smart meter related business overseas.
TEPCO unveiled its "Intensive Reform Implementation Action Plan" on November 7 2012. The plan calls for: "Establishing a system to realize exports of electric power systems utilizing our company's knowledge and knowhow of the overseas consulting businesses in cooperation with manufacturers and financial facilities." TEPCO is seeking to build up its knowledge of overseas T&D projects by providing the new company with expertise in planning, operation and maintenance of T&D facilities. The goal is to strengthen its business base with the view to expanding earnings overseas.
The introduction of smart grids to manage electricity demand using IT and rechargeable batteries to store energy for use at times of peak demand, in parallel with moves to promote the wider use of renewable energy, is making progress in advanced economies with high levels of environmental awareness, such as North America, Europe and Australia. In parallel with this, in the emerging markets of Southeast Asia, India and Latin America, advanced Japanese technologies and systems can be used to modernize and strengthen weak grids.
Going forward, Toshiba and TEPCO will use the new company and Toshiba's global bases to provide business solutions tailored to regional requirements and conditions.
Outline of New Company
|Name||T. T. Network Infrastructure Japan Corporation|
|Establishment||September 2, 2013|
|Headquarters||1-1, Shibaura 1-chome, Minato-ku, Tokyo|
|Capital||50 million yen for stated capital and 50 million yen for capital reserve|
|Shareholding||Toshiba (85.1%), Tokyo Electric Power Company, Inc. (14.9%)|
|Business activities||Consulting, engineering, providing systems and system management in overseas T&D field. Operation and maintenance service business in overseas T&D markets.|
About Tokyo Electric Power Company
Tokyo Electric Power Company (TEPCO) was established in 1951 to supply electric power to the Tokyo metropolitan area and for more than half a century it has continued to support society and public life with high-quality electric power. To meet growing public concern for the enhancement of reliability in supplying electricity and global environmental considerations, there is an increasing requirement for a high-quality power sector infrastructure in the field of generation, transmission and distribution. In line with such global interests, TEPCO has participated in overseas electricity consulting services, utilizing our expertise and know-how accumulated from our experience in Japan.
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