Toyo Engineering (TYO:6330) and Hitachi (TYO:6501) Developing LNG Plant Business

Tokyo, Oct 8, 2009 AEST (ABN Newswire) - Japan's Toyo Engineering Corp. (TYO:6330) and Hitachi Ltd. (TYO:6501) will join forces to make an entry into the global market for liquefied natural gas plants, targeting small, undeveloped gas fields mainly in Australia and Indonesia.

The two target markets hold an abundance of undeveloped small and midsize gas fields that would not be profitable if large plants were constructed for them. Many projects cost hundreds of billions of yen and even more than 1 trillion yen to build.

Hitachi will provide rotating equipment and power control software while Toyo Engineering will manage projects including plant design, equipment procurement and construction. Hitachi and Toyo Engineering alliance is seeking to reduce the costs of economic-size LNG plants construction by 20 per cent.

The alliance will market relatively small plants that can produce up to 2 million tons of LNG a year.

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Michelle Liang Asia Business News Asia Bureau Tel: +61-2-9247-4344 Email: michelle.liang@abnnewswire.net