Toshiba to Acquire Wind Power Generation Company, Sigma Power Janex

Toshiba Corporation today announced that it will enter the wind power generation business by acquiring Sigma Power Janex Co., Ltd., a subsidiary of Kyushu-based Janex Co., Ltd. that operates wind farms in Kyusyu, Japan. On completion of the acquisition, which is scheduled on this November, Sigma Power Janex Co., Ltd. will become a wholly owned subsidiary of Toshiba.

Toshiba is reinforcing its capabilities and presence in renewable energy sources. The company is already the world number one in geothermal power generation systems and a leader in hydro power systems, and is also involved in the wind power generation equipment business through a 2011 capital alliance with Korea-based Unison Co., Ltd. The acquisition of Sigma Power Janex Co., Ltd. will extend the scope of its business to cover wind power generation and supply.

At the completion of the acquisition, Sigma Power Janex Co., Ltd. will operate two wind farms, the Nagashima-Kuronose Wind Power Plant in Kagoshima prefecture, and Shin-Kamigoto Whales Wind System in Nagasaki prefecture, both on Kyushu, the westernmost of Japan's main islands. In addition, the company is to construct a new wind farm in Shin-Nagashima in Kagoshima, which is scheduled to start operation in fiscal year 2014, and has plans for four more wind farms in the Tohoku, Chugoku and Shikoku regions of Japan.

There is a worldwide trend towards greater use of wind power and other renewable energy sources. In Japan, although wind power generation must pass stringent environmental assessment, its deployment, along with that of other renewables, is being encouraged by a government-initiated feed-in tariff (FIT) pricing system. By acquiring Sigma Power Janex Co., Ltd., Toshiba expects to expand its wind power business by promoting synergies between the engineers who develop the equipment and those who deploy and use it.

Overview of Sigma Power Janex Ltd. (Plan)

• Capitalization: 490 million yen
• Headquarters: Chuo-ku, Fukuoka City
• Chairman: Hachiya Ishii (current status: Assistant to General Manager in Thermal & Hydro Power System & Services Division, Toshiba Corporation)
• Scope of Business: Projects on Wind Power Generation Plant, electric power sales and O&M