Order Received for Cogeneration System in Thailand

 Tokyo, March 17, 2005 – Kawasaki Heavy Industries, Ltd. today announced that it has recently received an order of 7,000 kW-class gas turbine cogeneration system jointly with Gamma Engineering Co., Ltd., a dealer of Kawasaki gas turbines, in Thailand. The cogeneration system, ordered by Picnic Corporation Public Co., Ltd., a Thai LPG provider and engineering contractor, is to be installed at Siam Ceramic Group Industries Co., Ltd. (SGI) in Saraburi, Thailand. Picnic and SGI concluded a BOOT (Built-Own-Operate- Transfer) contract for the system, which is for direct heating process. It is scheduled to be completed in September 2005.

 Picnic will operate the system, based on the Kawasaki GPB70 gas turbine generator set, with a 7,000 kW-class Kawasaki M7A-02 gas turbine engine, which will supply approximately 7,000 kW of electricity and 12,000,000 kcal/h of exhaust gas heat to SGI's factory. It is Kawasaki's first order from Thailand for a cogeneration system using the the M7A-02 gas turbine.

 SGI, one of the biggest tile manufacturers in Thailand, is under the umbrella of the Siam Cement Group, a conglomerate with businesses ranging from the chemicals to the textile industries. SGI not only has a prominent market share in the country, but also exports its products. By installing of the gas turbine cogeneration system, SGI will be able to reduce energy costs, in turn enabling significant product cost reductions to allow further expansion of its business.