MHIEC Receives Order to Build 182 Ton/day Waste Incineration Plant From Association of Local Municipal Offices in Iwate, Japan -- Plant Operation for Over 20 Years Also Awarded --

Tokyo, October 22, 2012 - Mitsubishi Heavy Industries Environmental & Chemical Engineering Co., Ltd. (MHIEC), a wholly owned subsidiary of Mitsubishi Heavy Industries, Ltd. (MHI), has received an order to construct and operate a municipal solid waste (MSW) incineration plant from a broad-based association of local municipal offices in central Iwate Prefecture, including Hanamaki and Kitakami cities. MHIEC will form a consortium with eight companies, including local firms, to construct a stoker furnace(Note) type incineration plant with a processing capacity of 182 tons per day (tpd). The order, in total worth approximately 13.5 billion yen, also calls for operation of the facility for a period of 20 years and 6 months. The plant is slated to go into operation in October 2015.

The project to build and operate the "Central Iwate Wide-area Clean Center (tentative name)" will adopt a "DBO" (design, build and operate) scheme, under which a public organization such as a local municipality funds and owns the facility and relegates DBO work to the commercial sector. The MSW incineration plant on order will consist of two 91 tpd stoker furnaces. The incineration ash from the plant will be reused as raw material for cement.

The other members of the plant construction consortium led by MHIEC are Jukan Operation Co., Ltd.; Honma Corporation; Chidatec Co., Ltd ; Odashima Co., Ltd.; Koiwai Farm, Ltd.; Akita Tohoku Syoji Co., Ltd ; Mitsubishi Paper Engineering Co., Ltd.; and Mitsubishi Materials Corporation. Operation of the plant will be handled by Central Iwate Eco-Creation Co., Ltd., a special-purpose company jointly owned by MHIEC (90 percent) and Jukan Operation (10 percent).

The broad-based association of local municipal offices in central Iwate performs cross-regional administrative work to handle the general waste of Hanamaki, Kitakami and Tono cities and Nishiwaga township. In line with the Japanese government's plan to promote waste management through wider-area cross-regional links, the association has been engaged in a project to construct a new waste management facility since its establishment in 2002. In the bidding for the project, comprehensive proposal assessment was performed that evaluated the candidates' technological expertise and know-how in addition to their bid amounts. The MHIEC team's proposal was chosen by the association's selection board.

MHIEC is a world-leading company with a solid track record in the delivery and operation of waste management facilities both in Japan and overseas. Based on these strengths, going forward the company will continue to focus on stable processing of general wastes and recycling, and will aggressively propose comprehensive solutions from initial design and engineering through operation.

Note: A stoker furnace is a common feature of MSW incineration plants. In a stoker furnace, MSW is combusted as it moves along on a fire grate made of heat-resistant castings.

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