MHI Receives Chinese Order for Major Components for Four M701F Gas Turbines.

Tokyo, Japan, Oct 16, 2006 - (JCN) - Mitsubishi Heavy Industries, Ltd. (MHI) today announced that it has received an order from Dongfang Steam Turbine Works, one of China's top turbine manufacturers, for major components for four M701F gas turbines. The gas turbines will serve as the core equipment of the Fujian Putian power plant, a 1,600 megawatt (400 MW x 4) natural gas-fired gas turbine combined-cycle (GTCC) power plant to be constructed by CNOOC Fujian Gas Power Limited. The plant's first power generation unit is scheduled to go on-stream in June 2008.

MHI will manufacture and supply key components of M701F gas turbines including blades, rotors and control systems. Combustors will be supplied by Mitsubishi Heavy Industries Dongfang Gas Turbine (Guangzhou) Co., Ltd., which was jointly established by MHI and DFSTW in 2005.

The GTCC power plant will be constructed in Putian district, approximately 150 kilometers northeast of Xiamen. In 1980 Xiamen was designated as a Special Economic Zone, and many foreign companies have invested in the area. The new power plant will respond to the resulting robust electricity demand.

Coal-fired power generation has long been the mainstream in China, but today the Chinese government is working to increase the ratio of gas-fired power generation in order to diversify energy sources. The latest order for GTCC power plants is China's third since 2003.

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