Shihlin Electric cooperates with TM T&D

Taipei, March 4, 2003 (CENS)--Shihlin Electric & Engineering Corp., one of Taiwan's largest producers of heavy electric machinery, recently announced it has signed a technology cooperation agreement with Japan's TM T&D Co.

The agreement will allow Shihlin Electric to access advanced manufacturing technologies developed by the Japanese firm for the production of electricity transformers and gas-insulated switchgear (GIS) products.

The agreement will give Shihlin access to key technologies for the production of 161-kilovolt GIS devices and transformers, said Shihlin chairwoman Suzanne Hsu.

The agreement is expected to help both sides obtain business opportunities worth several billion new Taiwan dollars in the year to come.

Shihlin said it would also cooperate with the Japanese company in mainland China and Vietnam.

Shihlin's expectations are high as the state-run Taiwan Power Co. (Taipower) is launching two new power transmission and distribution projects, and several major public construction projects are gathering steam in Taiwan.

Shihlin Electric manufactures transformers, switchgears, production machinery, heavy electrical machinery, and power transmission and distribution equipment.

TM T&D was established in October last year by the merger of the heavy electric equipment units of Mitsubishi Electric Machinery Corp. and Toshiba Co. The company is one of Japan's largest electric equipment producers.

Shihlin Electric and TM T&D will jointly expand into new markets through vertical division of labor, resources sharing, and marketing cooperation.

"Shihlin Electric is Taiwan's largest producer of heavy electric machinery with a full line of products, especially in the production of electric equipment and high/low-voltage electricity distribution equipment," said Shihlin Electric's president Emmet Hsu. "Our cooperation with TM T&D will help us rapidly acquire advanced manufacturing technologies and position us to win more contracts from the sixth transmission and distribution project launched by Taipower."

In the fourth quarter of last year, Shihlin Electric won NT$300 million (US$8.64 million at US$1:NT$34.7) worth of orders from Taipower for 345KV and 650MVA transformers. The company will supply electric equipment worth between NT$1.1 billion (US$31.7 million) and NT$1.2 billion (US$34.58 million) to Taipower this year.