Mitsubishi Group inks industrial cooperation pact with IDB

Taipei, Dec. 25, 2003 (CENS)--To realize the industrial cooperation project associated with the state-run Taiwan Power Company's Tatan thermal power plant project, Japan's Mitsubishi Heavy Industries Ltd. And Mitsubishi Corporation recently signed a NT$10.7 billion (US$314.7 million at US$1:NT$34) industrial cooperation agreement with the Industrial Development Bureau (IDB) under the Ministry of Economic Affairs.

IDB said those winning the bid to handle the power plant project, related affiliates and satellite suppliers are required to engage in industrial cooperation with domestic firms, with the minimum value of the cooperation projects set at 20% of the power plant contract value.

The agreement was inked on Dec. 22 by IDB director Chen Chao-yi and some top executives of the Japanese group. The group said it would carry out the cooperation agreement by procuring domestically made products, conducting technology transfer, making investment in Taiwan, helping domestic firms expand foreign sales and train personnel, offering certifications, and launching cooperative research and development.

Among participants in the signing ceremony were representatives of Allis Electric Co., Formosa Heavy Industries, Fortune Electric, Hon Hong Tai Electric Industrial, CSC Machinery, Chang Shing Electric Co., CTCI Corporation, Gibsin Engineers, Ltd., and the state-run Chinese Petroleum Corp. They hoped to scramble for the business opportunities from the industrial cooperation agreement.

Under the agreement, the Mitsubishi Group will help domestic power and energy sectors with the technology to set up electronic control system and piping system. The group will also help domestic firms upgrade the quality of such product as polyester fibers, and help domestic enterprises explore international markets, in the next decade.

To that end, the group has set up a task force by consolidating the enterprise resources of both Mitsubishi Corp. and Mitsubishi Heavy Industries.

Mitsubishi won the Tatan thermal power plant project for NT$53.4 billion (US$1.57 billion) in mid-June this year. The plant will begin construction early next year and commence operations in June 2005. The last power-generating unit of the plant is expected to begin running in May 2005.

In addition to the Tatan project, Mitsubishi Heavy Industries has also won a bid of Taipower's No.4 nuclear power plant and the Ilan County's Litse incinerator project. The company has already carried out a US$90 million industrial cooperation project associated with the No.4 nuclear power plant and has been carrying out a NT$230 million (US$6.76 million) industrial cooperation project from the Litse project for a period of five years since last year.