Press Information

MHI Receives Successive M701F Natural Gas-fired Gas Turbine Orders
For Power Generation Plants in Turkey and Ukraine


Tokyo, June 5, 2008 - Mitsubishi Heavy Industries, Ltd. (MHI), has received successive orders for M701F gas turbines for natural gas-fired power generation plants in Turkey and Ukraine. The 920 MW (megawatt) gas turbine combined-cycle (GTCC) power plant for Enerjisa Enerji Uretim A.S. (Enerjisa), a Turkish electricity provider for the domestic market, is slated to go on-stream in August 2010. The Ukrainian order is for a 300 MW gas-fired power plant which will be newly built in the Komsomolsk industrial area located in the central Ukraine, scheduled to go on-stream in June 2011. The new orders mark the seventh gas turbine for Turkey and the fourth unit for Ukraine.

The Turkish GTCC power plant – the order for which MHI received on a full-turnkey basis jointly with A-TEC Power Plant Systems AG (A-TEC PPS), an Austrian engineering company specialized in GTCC power plants – will be built in Bandirma, on the Marmara Sea coast. The Bandirma power plant will consist primarily of two gas turbines, a steam turbine and three generators. MHI will design and manufacture the gas and steam turbines. A-TEC PPS will furnish peripheral equipment and perform civil work and installation. Mitsubishi Electric Corporation will manufacture the generators.

Enerjisa was established in 1996 by the Sabanci Group to generate and supply electricity to group companies. Since May 2007 the company has been jointly owned and controlled by Sabanci Holding and Österreichische Elektrizitätswirtschafts-Aktiengesellschaft (Verbund), Austria’s leading electric utility provider. Enerjisa presently has four small-scale GTCC power plants totaling 370 MW and hydroelectric power plants totaling 85 MW. Amid industry liberalization and increasing demand for electricity, the company now plans to establish a generation capacity of 5,000 MW by 2015, aiming to become one of the leading electricity providers in Turkey. The latest GTCC power plant order is part of this capacity enhancement program.

A-TEC PPS is a subsidiary of A-TEC Industries AG, a Vienna-based industrial group with operations in drive systems, plant engineering, machine tools and metallurgy. MHI began collaboration with A-TEC PPS in the marketing of GTCC plants in 2006 in a quest to expand GTCC sales mainly in Central and Eastern Europe and Turkey. The latest Turkish GTCC order is the first fruit of the MHI/A-TEC PPS team’s marketing activities. MHI established Mitsubishi Power Systems Europe, Ltd. (MPSE) in October 2007 as a base dedicated to power systems business in Europe. Collaboration with A-TEC PPS is one of MHI's proactive initiatives to enhance its locally tailored power systems marketing activities in the region.

The Ukrainian gas turbine order, which MHI received jointly with Sumitomo Corporation, is for a new power plant that Komsomolsk Cogeneration Company (KCC) will build in the Komsomolsk industrial area. KCC is a fellow subsidiary of Ferrexpo plc, which operates an iron ore pellet production plant in the industrial area, and the electricity generated at the power plant will be supplied to the Ferrexpo's existing plant and a planned steel plant. KCC plans future conversion of the power plant to a GTCC type plant, but at this stage will construct the plant as a gas-turbine-only, simple-cycle power generation facility. MHI will design and manufacture the gas turbine and Mitsubishi Electric Corporation will manufacture the generator.

Ukraine has enormous iron ore reserves and is capable of supplying the raw materials for steel stably. With high prices of these materials expected to continue for some years to come due to their tight supply situation, today the country is aggressively investing in iron and steel production facilities.

Countries that continue to enjoy high economic growth in the region, including Turkey and Ukraine, as well as in Europe, face tight electricity supplies and are keen to alleviate the problem. In response, MHI continues to aggressively market its highly efficient, high-capacity power generation systems featuring M701F gas turbines, which will also contribute to reducing environmental burdens.


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