Fuji Electric Affiliate to Acquire Water Turbine Business

April 25, 2011

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Voith Fuji Hydro K.K. (“Voith Fuji Hydro”) announced today that it has executed a business transfer agreement to acquire the water turbine business of Ebara Corporation (“Ebara”).

1. Objective

Voith Fuji Hydro agreed to acquire the water turbine business from Ebara in order to further strengthen its water turbine activities, a major pillar of its business.

Voith Fuji Hydro’s water turbine business is expected to attract steady future demand as a source of renewable energy that contributes to the realization of a low-carbon society. In addition to stable demand from facility renovation, this forecast of steady growth is based on the trend toward the new construction of mainly small-scale hydraulic power generation stations interspersed with plans for large-scale projects.

Turning to overseas markets, demand is also projected to remain robust, particularly in such emerging regions as Asia, where the development of power sources that use abundant water resources is high.

Voith Fuji Hydro plans to further ramp up efforts aimed at modernizing hydraulic power plants in Japan. The acquisition of this business also aims to assist Voith Fuji Hydro in delivering to Ebara’s customers new technologies that help improve the performance of turbines and generators increase the output of power plants and streamline maintenance. In collaboration with the Voith Hydro Group, Voith Fuji Hydro will also focus its efforts on large-scale hydraulic power generation, pumped-storage power generation, and other related facilities outside of Japan. Collectively, these and other related endeavors will facilitate hydraulic power business expansion while at the same time contributing to the realization of a key social requirement, namely the development of a low-carbon society.

From a production perspective, operations will be integrated into Voith Fuji Hydro’s Kawasaki Factory. Every effort will be made to ensure customer satisfaction through the establishment of optimal production and supply chain structures.

1. Scheduled Date of Business Transfer

June 1, 2011 (tentative)

2. Company Profiles (as of March 31, 2011)

Voith Fuji Hydro K.K. Established: October 1997
Location: Kawasaki City, Kanagawa Prefecture
Representative: Dr. Martin Küchle
Capital: ¥0.2 billion
Capital Composition: Fifty-fifty joint venture between Fuji Electric Co., Ltd. and Voith Hydro Holding GmbH & Co. KG (refer below for an overview of both companies)
Business Activities: Total engineering of hydraulic power systems; turbines and peripheral equipment; generator and peripheral equipment; control and automated equipment; other electric devices
Ebara Corporation Established: November 1912
Location: Ota-ku, Tokyo
Representative: Natsunosuke Yago
Capital: ¥61.2 billion
Business Activities: Pumps; air blowers; compressors; turbines; refrigeration equipment and systems; municipal incinerator plants; industrial waste incinerator plants; vacuum pumps; CMP equipment; various types of plating equipment; various types of semiconductor industry instruments and equipment

Ebara Corporation Established: November 1912
Location: Ota-ku, Tokyo
Representative: Natsunosuke Yago
Capital: ¥61.2 billion
Business Activities: Pumps; air blowers; compressors; turbines; refrigeration equipment and systems; municipal incinerator plants; industrial waste incinerator plants; vacuum pumps; CMP equipment; various types of plating equipment; various types of semiconductor industry instruments and equipment
Fuji Electric Co., Ltd. Established: September 1923
Location: Shinagawa-ku, Tokyo
Representative: Michihiro Kitazawa
Capital: ¥47.5 billion
Business Activities: Development, manufacture, sale and service of a variety of machinery, equipment and devices relating to social infrastructure in the industrial, public-sector, energy, transportation and related fields as well as systems, semiconductor devices, organic photoconductors and other peripheral imaging equipment

Overview of companies holding joint-ownership of Voith Fuji Hydro K.K. 

Voith Hydro Holding GmbH & Co. KG Established: January 1987
Location: Heidenheim, Germany
Representative: Dr. Roland Münch
Capital: ¥15.0 billion
Business Activities: Comprehensive engineering services for hydroelectric power facilities; manufacture of water turbines and their peripheral products, pumps, power generators and their peripheral products, control and automation devices, wave power generation equipment, and tidal power generation equipment

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