Feb. 15, 2013
Sumitomo Australia Pty Ltd
Participating in Power Business in Australia
Sumitomo Corporation (Head Office: Chuo-ku, Tokyo; President and CEO: Kuniharu Nakamura) and Sumitomo Australia Pty Ltd (Head Office: Sydney; President: Rei Ito) (hereinafter jointly referred to as the "Sumitomo Corporation Group") announce the purchase of a part of the ownership of the Bluewaters power stations in Australia. The other ownership has been acquired by The Kansai Electric Power Co., Inc. (Head Office: Kita-ku, Osaka; President and Director: Makoto Yagi; "KEPCO"). The Japanese consortium will jointly manage the acquired electricity business.
The Bluewaters plants are located approximately 180 km south of Perth, the State capital of Western Australia and combined are one of the State's largest-scale coal-fired power stations, with a total output of 416 MW. Since their commencement of commercial operation in 2009, the plants have been providing reliable operation as a major local power supplier. The Sumitomo Corporation Group has obtained the relevant equity interest from Australia-based Griffin Energy Group Pty Ltd, which will be held by Summit Southern Cross Power Holdings Pty Ltd (Head Office: Sydney), a wholly owned subsidiary of the Sumitomo Corporation Group.
Bluewaters represents the second power plant project involving the Sumitomo Corporation Group in Western Australia, following the purchase of a stake in the 320 MW Kwinana natural gas fired combined cycle power plant in 2009. The total capacity of the two power stations accounts for around 13 percent of the State's total, meeting the demand of approximately 800,000 households. With the recent acquisition, while expanding its presence as a private business in the local Western Australian electricity supply market, the Sumitomo Corporation Group now holds a combined equity-based share of about 6,000 MW in power generation capacity throughout the world.
The State of Western Australia is rich in natural resources and hosts numerous mining projects. Its most important commodity, iron ore, accounts for nearly all of the country's iron ore exports, making Australia the world's second largest exporter of the mineral product. Other major underground resources developed for commercial production in the State include liquefied natural gas (LNG), gold, petroleum, nickel and alumina. The State's established mining sector has recently been expanding on the back of surging demand for minerals and other natural resources around the world. In line with a burgeoning local economy driven by increasing trends in global demand, the State's annual electricity demand is expected to rise at an annual average rate of about 3 percent over the next 10 years. The Sumitomo Corporation Group intends to manage the Bluewaters business by drawing on know-how accumulated in the Kwinana project and focusing on efficient management of the two stations, thereby continuously contributing to the growth of Western Australia's electricity industry and local communities. The Sumitomo Corporation Group, while taking advantage of its favorable market position but focusing on the changing business trends, aims to further expand its power project business in the Australian market.
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