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Chinese petrochemical maintenance contract for Yokogawa

March 2006 News

Yokogawa Electric Corporation has concluded a long-term maintenance contract with CNOOC and Shell Petrochemicals Company Limited (CSPC) under which it will maintain the instrumentation equipment at CSPC's Nanhai petrochemical complex in Huizhou, China. The contract is for a period of just over four years, from 1 November, 2005 to 31 December, 2009. Yokogawa will provide round-the-clock support for the Yokogawa products installed throughout the plant, ranging from central control monitoring facilities such as information management systems and Foundation Fieldbus compatible integrated production control systems to field devices.

Yokogawa recognises how important the construction of a comprehensive service network is to gaining the confidence of its customers. In addition to the traditional services of after-sales support and supply of parts, it is now exploring new business opportunities involving the provision of advanced preventive and predictive maintenance services. In line with these initiatives, it moved its global response centre, the core of Yokogawa's service system, to the Tokyo headquarters and installed new facilities there in June 2005. The company also established a response centre in Shanghai in July 2005.

In China, plant owners usually take responsibility for performing maintenance and rarely ask the manufacturer to play a role in this. However, CSPC elected to conclude this long-term maintenance contract with Yokogawa because of the plant owner's high estimation of Yokogawa's ability to ensure the stable operation of a plant over its entire lifetime. Proactive efforts such as Yokogawa's opening of a service centre in Huizhou at the same time the plant commenced operations also helped improve CSPC's confidence in Yokogawa's ability to provide a timely response to their requests.

Yokogawa continues to expand its service business in China and improve the quality of its services in order to gain customer confidence and win more orders.

CNOOC and Shell Petrochemicals Company Limited (CSPC):

A joint venture between Shell Nanhai BV, a member of the Royal Dutch/Shell Group of Companies, with a 50% stake, and CNOOC Petrochemicals Investment Limited (CPIL), also with 50%. CPIL is owned by China National Offshore Oil Corporation (CNOOC) (90%) and Guandong Guangye Investment Group Company (10%), and was founded in December 2000.

Nanhai Petrochemical Complex:

A large-scale integrated petrochemicals complex comprising an 800 ktpa ethylene cracker, and 10 downstream process units producing up to 2,3 megatons of chemical products in total.

For more information contact Roy Botha, Yokogawa, 011 831 6300, info@za.yokogawa.com,



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