Toshiba Starts Power Transformer Production at New Factory in Brazil

TOKYO — Toshiba Corporation (TOKYO:6502) today announced that Toshiba Infrastructure South America Ltd (TIC-SA), a Brazilian Toshiba Group company, has started production of power transformers in a plant built in Betim, Minas Gerais state.

Many South American countries are upgrading their social infrastructure and planning to promote development of smart grids. This is particularly true in Brazil, host to the 2014 FIFA World Cup Brazil and the 2016 Summer Olympic Games in Rio de Janeiro. Under its Growth Acceleration Program, the Brazilian government plans to invest in the areas of logistics, energy and social development. Against this background of economic and population growth, demand for electricity in South America is expected to rise and the market for power transformer is forecast to expand from about US$210.0 billion in 2012 to US$250.0 billion in 2015.

TIC-SA currently undertakes manufacture and sale of power transformers at its plant in Contagem, Minas Gerais. That facility has an annual capacity equivalent to amount 15GVA, and its output goes to the Brazilian market and the Americas. Construction of the new plant to meet growing demand began in May 2011, some 25km west of Contagem city. The site is 146,000m2 and the building has a floor area of 22,710m2. The investment in plant and equipment to this point is approximately 6.0 billion yen.

TIC-SA has put in place a production framework covering both plants. The Contagem site will produce small-capacity transformers, while the Betim site will manufacture medium- to large-capacity transformers. This expanded production base will support TIC-SA in proactively promoting its social infrastructure businesses throughout the region.

Overview of the new plant

Location: Betim, Minas Gerais, Brazil
Site area: 146,000m2
Floor area: 22,710m2
Products: Medium- and large-capacity power transformers
Construction: Started in May 2011, completed in May 2013

Overview of Toshiba Infrastructure South America Ltd (TIC SA)

Representative: Luis Carlos Borba
Capital: R$220 million (approx. US$109 million)
Established: April 1, 2011, through the merger of Toshiba Transmission and Distribution Brazil Ltd. and Toshiba Transmission and Distribution Systems Brazil Ltd.
Location: Contagem, Minas Gerais State, Brazil
Employees: About 6,000
Business: Overall Social infrastructure systems business, including power transmission and distribution, power systems, transportation systems, motors and inverters

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