TOKYO, Nov 24, 2011 - (ACN Newswire) - On November 23, 2011, Mitsubishi Corporation (MC) completed the acquisition of 40% of the shares of Philippine Integrated Energy Solutions, Inc. (PhilEnergy), 100% owned by Ayala Land Inc. (Ayala Land), a Philippines-based real estate company. Through this acquisition, MC will participate in the energy saving business (District Cooling System Business(1) and Energy Service Company(2)) in the Philippines.
The Philippines has enjoyed high economic growth (more than a 5% GDP growth rate). However, energy-related infrastructure has become more of an issue and electricity generation facilities are being strengthened. The government of the Philippines is looking into the establishment of a law with the aim to reduce energy consumption. PhilEnergy owns large-scale facilities for cooling and plans to supply chilled water, warm water and steam for use in air conditioners and the like in multiple Manila metropolitan area (Makati City) buildings (offices, businesses, hotels, etc.) starting in March 2012. In comparison to when buildings have their own small-scale facilities, energy consumption can be reduced and the initial construction cost to the building owners (the cost to establish cooling facilities) can de decreased through the bundled supply provided by these cooling facilities.
MC will introduce an energy saving market and help to improve the environment in the Philippines, where energy costs are expected to rise and growth is expected, through PhilEnergy in cooperation with Ayala Land by utilizing the know-how gained via its energy-savings business in Japan.
In July of 2010, MC designated global environmental businesses as a strategic domain as part of its Midterm Corporate Strategy 2012 aiming to contribute to society's sustainable development through business.
For full details, please visit: www.mitsubishicorp.com/jp/en/pr/archive/2011/html/0000013442.html.
(1) District Cooling System Business - A District Cooling System sends chilled water, warm water and steam to use for air-conditioning in multiple buildings via a pipe from one or several plants. This is called District Heating and Cooling, where heat is produced in a centrally located plant, not at each buildings' cooling or heating facilities.
(2) Energy Service Company - Energy Service Company provides service to improve energy efficiency through the introduction of building facility upgrades and energy saving knowhow. It shares energy reduction benefits with its customers, mostly energy consumption reduction achieved through the upgrade, management and maintenance of air conditioning and heating facilities.
Topic: Joint Venture
Sectors: Daily Finance, Energy
From the Asia Corporate News Network
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