News

June 24, 2008

Hitachi Canadian Industries Ltd. Celebrates 20 Years in Saskatoon

Hitachi Canadian Industries Ltd. (HCI) is celebrating two decades of business in the Saskatoon community.

HCI began in 1988 with a single building, employing 30 people to manufacture components for Hitachi steam turbines being installed at SaskPower's Shand Power Station. HCI is 100% owned by Hitachi Ltd. ( Tokyo , Japan ) and is part of Hitachi 's Power and Industrial division. When HCI opened its doors in 1988, it was the first manufacturing facility for the Power & Industrial division to be built outside of Japan .

Now, in 2008, HCI has expanded to 300 people and 200,000 square feet of production space. Since celebrating its 10th anniversary, the company has diversified to explore two rapidly growing industries: wind energy, and oil & gas. Two new products include towers for wind turbines, and pressure vessels used in the oil refining process. HCI also manufactures major components and provides repair services for steam, gas and hydro turbines. The company's major production processes include steel fabrication and welding, precision machining, painting and assembly.

HCI continues to strive to fulfill its company vision of "being the best at what we do, powered by innovation, technology, and committed, passionate people". The company provides employment, training, and growth opportunities for skilled welders, machinists, fabricators, engineers, and administrative staff in Saskatoon . HCI will honour the company's first twenty year employee, Glen Hyland, during anniversary celebrations on Wednesday June 25 th .

Always looking for ways to give back to the Saskatoon community, HCI started a Community Action Committee (CAC) in 2004. The committee is made up of ten HCI employees, who donate company funds to local charities, and access matching grants from the Hitachi Foundation in Washington DC . To recognize the importance of community on their 20 th anniversary, the HCI CAC will make a donation to READ Saskatoon during Wednesday's celebration.

Hitachi Canadian Industries Ltd. looks forward to the next 20 years "Inspiring the Next" in the local and worldwide communities.

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November 2006

Hitachi Keeps Busy (Pressure Vessel Manufacturing)

Refinery expansions in the Edmonton area have been good for the engineering team and skilled welders at Hitachi Canadian Industries Ltd (HCI). On Tuesday afternoon, a 114.5 tonne pressure vessel was loaded onto a special multi-tired trailer to take the 33 metre hight vessel to the customer. It's one of the largest products ever built at the 58th Street manufacturing facility. HCI vice-president of operations Murray Daku says this tank - called a regenerator vessel - was one of eight pressure vessels being built in Saskatoon by HCI for the same refinery. The contract, when completed in February, will have kept 40 people busy for six months. Daku says at least four Edmonton refineries are going through major expansions so they can better handle and refine the heavy oil coming to them from the oilsands. Daku says the contracts are particularly satisfying because HCI engineering staff designed the vessels in Saskatoon, beginning in September 2005, with fabrication starting in June of this year. Daku says the vessels are more complex and thus more challenging to build than HCI's other main products, wind turbine towers. As a result, HCI is constantly challenged "to find and reward enough high level" welders and steel fabricators to complete the vessels on time.

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July 2006

Saskatchewan-based partnership developing world-leading clean coal technology
(Government of Saskatchewan News Release)

Hitachi Ltd., Marubeni Canada Ltd. and SaskPower officially announced a Memorandum of Understanding (MOU) today that will play a major role in advancing the corporation's feasibility work on a clean coal power plant. The agreement will provide design and engineering for a steam turbine generator and related systems for the world's first near-zero emissions pulverized coal plant of this scale.

The resulting operational and economic data will assist SaskPower in assessing whether to proceed to construction phase on a new facility, which is expected to greatly reduce greehouse gas emissions by capturing at least 90 per cent of carbon dioxide (CO2) emissions. C02 recovered from the clean coal power plant could be sold for enhanced oil recover operations in southeast Saskatchewan or sequestered in deep saline aquifers.

"From the Clean Coal Project to the recently completed Centennial Wind Power Facility, SaskPower continues to demonstrate its willingness to aggressively pursue energy solutions that are both environmentally and economically beneficial for the province," Minister responsible for SaskPower John Nilson said. "The 35-year working relationship between SaskPower, Hitachi and Marubeni continues to pay dividends through the energizing of Saskatchewan's economy on many levels."

The SaskPower Celan Coal Project team is examining the viability of a $1.5 billion, 300-megawatt clean coal plant that would capture about 8,000 tonnes of CO2 a da. It would allow the corporation to meet emergin regulatory requirements while adding much-needed base-load generating capacity that continues to take advantage of Saskatchewan's 300-year supply of low-cost lignite coal.

With approximately two-thirds of Saskatchewan's electricity generated through coal, SaskPower is continually working to reduce emissions. Significant gains have been made in controlling particulate matter, sulphur dioxide (S02), nitrogen oxide (N0X) and mercury. CO2 - thought to be the primary contributor to global warming - remains one of the most significant challenges for electrical utilities around the globe.

"The Clean Coal Project is allowing SaskPower to build upon its long history of ingenuity in supplying safe, reliable, cost-effective and environmentally responsible electricity to our customers," SaskPower president and Chief Executive Officer Pat Youzwa said. "We will carefully weight the merits of a clean coal plant along with other potential supply options as we look to replace or refurbish our aging generation fleet through the next 20 to 30 years."

The Poplar River Power Station near Coronach and Shand Power Station near Estevan are the two potential sites for the location of a new clean coal power plant. It is anticipated a decision to proceed will be made by mid-2007, following a review of technical, regulatory, environmental and economic considerations.

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July 2006

Fired up about Coal project (Saskatoon Star Phoenix)

Saskatchewan could become the first place in the world where electricity is produced on a large scale using a coal-burning process that pumps harmful carbon dioxide into the ground instead of the sky.

That's the optimistic goal behind a partnership agreement announced Thursday among Hitachi Ltd., Marubeni Canada, SaskPower and the federal and provincial governments to study the feasibility and risks of building a $1.5-billion "clean coal" power plant that would send its emissions to nearby oil fields, where the carbon dioxide could be used to increase oil production and then remain secure underground for thousands of years.

SaskPower expects to make a decision on whether to proceed with construction by the middle of next year, although the plant itself would not likely be open until 2010.

Two Possible Sites

About half of the province's current electrical capacity is generated with Hitachi equipment, Fujitani noted, adding past co-operative efforts with the government have resulted in wins for both sides of the partnership and substantial economic activity in Saskatchewan. If the clean coal project works, Hitachi will be able to export the technology to other countries.

If this project proceeds to the construction phase it will mean another chance for the company to continue to ensure its stability and growth, providing high quality jobs for local workers, Fujitani said.

"Where in the past coal has been characterized as environmentally unfriendly, our clean coal project will change all that, and once again make coal power generation an environmentally responsible energy source, and a near-zero emission coal plant would indeed be a tremendous technological achievement."

The Poplar River power station near Coronach and the Shand power station near Estevan are both being considered as potential sites for the plant, since both have a large enough coal supply and are close to oilfields where enhanced oil recovery is underway.

Industry experts estimate Saskatchewan's coal supply is capable of lasting another 300 years.

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June 2005

Wind Energy "Hitachi and SaskPower energize manufacturing" (June 2005)

A huge wind energy project under construction in south-west Saskatchewan, capable of generating enough emission-free electricity for 64,000 homes, is also energizing a local industry that manufactures the massive structures needed to harness the province's steady breezes.

Hitachi Canadian Industries, subcontracted by Danish wind energy giant Vestas, is manufacturing 83 mammoth towers in Saskatoon for the SaskPower project.

The project's 67-metre-tall towers will support enormous three-bladed wind turbines each weighing over 100 tonnes. When completed in December 2005, the $250 million, 150 MW installation, which will be named the Centennial Wind Power Facility in honour of Saskatchewan's 100th anniversary, will be the largest wind power facility in Canada, increasing national wind energy capacity by a third.

Tower components manufactured and stored at Hitachi's facilities are being delivered to the project's Rush Lake Creek site at the rate of two sections a day. Hitachi general manager Murray Daku says manufacturing towers will take 70 people years. Now in its fifth month, the project is nearly complete.

He said Hitachi has hired over 100 employees and invested nearly $10 million expanding its Saskatoon factory. It is Hitachi's only facility devoted to wind tower production. Hitachi's first order for wind towers was for the SaskPower Cypress wind-power facility. Hitachi's Saskatoon facility is now delivering wind towers all over North America.

"The fact that SaskPower is here in Saskatchewan is certainly a great long-term business opportunity. It's really the reason we got started in this business. We probably wouldn't have had the chance to get started otherwise," said Mr. Daku.

Doug Lautermilch, SaskPower's vice president of project development, said work with Hitachi is proceeding very well, and Hitachi's tower production progress has been "phenomenal".

"Hitachi has spent a lot expanding its facility. It is one of the major producers of wind towers in North America now," said Mr. Lautermilch.

He said while while wind energy is part of SaskPower's commitment to meeting Saskatchewan's energy needs with environmentally friendly sources, there are also significant economic benefits.

"This project is significant for Hitachi and also for any people it will hire as permanent employees. There are multimillion dollar benefits to the province of Saskatchewan" he said.

SaskPower's Centennial project is part of a record-breaking year in Canadian wind energy development said Robert Hornung, president of the Canadian Wind Energy Association. He said Saskatchewan has taken important steps forward in using its wind resources.

"By the end of the year, Saskatchewan will be getting close to 5% of its energy from wind, which puts it among the leaders in Canada," said Mr. Hornung, adding, "We're confident that they'll find there is definitely room for even more wind development in Saskatchewan."

Hitachi's Mr. Daku also sees real potential in wind power for Saskatchewan.

"The future looks very bright. It looks like there is going to be a continuing emphasis on green power. We're hoping and expecting that the investments that we've made will continue to pay off for years," said Mr. Daku.

Wind Energy "Hitachi and SaskPower energize manufacturing"

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March 2005

SaskPower Invests $130 Million to Upgrade Poplar River Power Station

SaskPower announced today that it will invest $130 million in a major upgrade at the Poplar River Power Station near Coronach in south-central Saskatchewan. The upgrade is scheduled for completion by summer 2006.

"Through careful planning and strategic investment, SaskPower is maintaining and upgrading our provincial electrical generation facilities on an on-going basis," Minister responsible for SaskPower Frank Quennell said. "SaskPower is committed to delivering power in a safe, cost-effective and environmentally responsible manner to serve our province’s growing economy."

The project is planned to replace worn-out boiler components with components of newer and improved design. In addition, SaskPower will upgrade the existing turbine to improve efficiency, and will be replacing the generator. The project will almost double the unit’s life expectancy and maintain its viability for another 20-25 years. The upgrade will increase the unit’s output from 281 to 315 megawatts (MW) through increased reliability and efficiency.

"SaskPower’s three coal-fired power stations, Poplar River at Coronach along with Boundary Dam and Shand near Estevan are the core of our provincial generation fleet,” Quennell said. “One of SaskPower’s most economical forms of generation, coal – on average – accounts for approximately 60 per cent of the total annual electrical generation."

Babcock & Wilcox Canada has been awarded contracts totalling approximately $50 million to complete the boiler upgrade with work going to their Melville fabrication facility. An additional $30 million will go to Hitachi Ltd. and Hitachi Canadian Industries Ltd., based in Saskatoon, for the turbine and generator components of the project.

SaskPower operates 15 generating facilities with an installed capacity of approximately 3,050 MW, including three coal-fired thermal stations, seven hydro stations, four natural gas peaking stations and the Cypress Wind Power Facility.

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January, 2005

Winds of change
"Sask. gov't and Hitachi team up for wind power project"

Steel towers to support wind power turbines are under construction in Saskatoon as the provincial government proceeds with one of the largest wind power projects in Canada.

"Today, the world in some way meets in Saskatchewan," said Premier Lorne Calvert at a news conference on Friday.

"We have the world's largest producer of wind turbine technology - Vestas, this Danish company - joining forces with the power-house manufacturer from Asia - Hitachi - and it's all happening right here in Saskatoon because of the skilled workforce that can make it happen."

SaskPower is constructing a $250-million, 150-megawatt wind farm 25 kilometres southeast of Swift Current to augment its existing Cypress wind-power facility near Gull Lake. When the Rushlake Creek wind power project is completed in December, 2005, it will generate enough electricity for 64,000 homes.

Hitachi Canadian Industries, subcontracted by Vestas Canada, will manufacture 83 steel towers for the wind power facility. Each will be 67 metres tall and will support the Vestas wind turbine generator and gearbox as well as anchor the three long blades that turn in the wind. Hitachi will also supply the internal assembly for the towers including ladders, platforms and electrical components.

Construction of the towers began a couple of weeks ago and will continue until October when the last of the towers is expected to be delivered to the site in Saskatchewan's southwest, says Hitachi general manager Murray Daku.

Calvert and the Minister Responsible for SaskPower, Frank Quennell, toured the Hitachi plant in Saskatoon's north end on Friday to see the construction firsthand and to boast about the NDP government's hand in creating Hitachi jobs.

Hitachi added 70 new workers to its plant last year and is in the process of hiring another 30 employees. Not all those people will be working on the Rushlake Creek towers though, says Daku. He expected it will take 70 people years to build the ones needed for the project.

Calvert says because the provincial government is committed to building a green economy, SaskPower is going ahead with the project even it does not have a private sector partner. Calgary-based ATCO power withdrew from the project in September saying it had other investment opportunities closer to home.

"We only will enter partnership when we're absolutely secure and all due diligence has been done and that, of course, takes time," said Calvert.

He says SaskPower is not at the negotiation stage with any company although "conversations" are going on.

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December, 2002

Saskatchewan Plant Lands New Wind Tower Contract
"HCI to Recall and Hire 50 Employees in January 2002"

Hitachi Canadian Industries Ltd. (HCI) of Saskatoon announced that it is gearing up for production of a new order of its wind power turbine components. The company will be adding 50 persons to its workforce in January 2003. These positions will be primarily in the areas of welding, crane operations, and quality assurance. HCI, based in Saskatoon, is Hitachi Ltd.'s North American headquarters for power generation equipment manufacturing.
According to HCI Vice President Pat Pitka, "We are extremely pleased about this announcement for two primary reasons. First, of course, is the fact that Hitachi is able to bring back approximately 50 people who have been on either a temporary or permanent layoff. Secondly, this wind tower project builds on the success that our plant has achieved in searching out, and finding, new opportunities in the power generation market."
The power generation equipment manufacturing sector throughout North America has been hard hit over the past year as part of the fallout from the Enron debacle and general excess of generation capacity in the USA. Manufacturers in the energy sector in both Canada and the United States were faced with serious reductions in available business opportunities as the market contracted in 2002.
During the past year, however, the Saskatoon based Hitachi plant made the decision to search out new market opportunities. One result has been the launch of HCI's new Wind Power Turbine initiative.
"What is very encouraging to all of us here at Hitachi," says Pitka "is that this order for 19 wind towers is our second major piece of business from this new initiative. Our plant produced components for nine wind towers for SaskPower's Cypress project earlier this year that were installed in southern Saskatchewan. This new order, destined for southern Alberta, puts HCI more firmly into this growing market. It also validates our decision to diversify the areas in which our plant searches out new business opportunities."
Hitachi Canadian Industries officials expect the majority of the recalled employees will return to the company. According to Pitka, "Under difficult conditions, we stayed in touch with this employee base to the degree we could. They were part of our company's Christmas party, our kid's Christmas party and the majority of them were here at the plan when we announced this project to our employees." It is expected that all employees for this project will be in place by the third week of January 2003.

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November, 2002

New President at Hitachi

There has been a change at the top at Hitachi Canadian Industries Ltd. (HCIL).

The Saskatoon manufacturing operation on 58th street has welcomed a new president, who has been appointed by Hitachi Japan. He is Takamitsu Nakazaki, who arrived in Saskatoon in mid-October.

Nakazaki replaces Hiroshi Yamaguchi, who returned to Japan November 6th after 31/2 years at the helm of HCIL.

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December 5, 2001

Saskpower Salutes Saskatoon Supplier

A long-time SaskPower supplier is being recognized for providing superior products and service to the Crown corporation.

Hitachi Canadian Industries Ltd. is a recipient of a 2001 SaskPower Power of Business award. The award was introduced in 1999 to recognize the important role local firms play in the corporation's success and the Saskatchewan economy.

Hitachi is the 10th firm to be honoured with a Power of Business award since it was created in 1999.

Crown Investments Corporation Minister Maynard Sonntag presented the award to Hitachi Canadian Industry's president Hiroshi Yamaguchi at the company's manufacturing facility in Saskatoon.

"SaskPower makes every effort to support local Saskatchewan businesses," Sonntag said. "Over the last 20 years, Hitachi has provided the corporation with excellent products and service at an excellent price."

"Local businesses like ours get a boost from the contracts we have with SaskPower," Yamaguchi said. "These contracts mean we can continue to maintain our workforce, expand our operations and contribute to the local economy. SaskPower has always been a leader when it comes to recognizing the ability of local suppliers to provide products and services that can compete with any other company in the marketplace."

Hitachi established its North American power generation component
manufacturing headquarters in Saskatoon in 1988 with 30 employees. The company supplies SaskPower with a wide variety of technical and field services as well as manufactured parts. With over 340 workers at its Saskatoon facility, Hitachi is assembling six H25 gas turbines as part of the $140 million upgrade to the Queen Elizabeth Power Station. In 2001, Hitachi and SaskPower signed a 10-year, $20 million maintenance agreement for the turbines. Hitachi was subsequently named the North American Service Centre for the gas turbines last year.

SaskPower buys, on average, more than 80 per cent of its purchases from local firms. Over the last 15 years, the corporation has purchased over $3.2 billion in goods and services from Saskatchewan.

For more information, call:

Larry Christie - SaskPower	Pat Pitka - Hitachi
Phone: (306) 566-3167	Phone: (306) 242-9222
Toll-free: 1-888-536-0000	Saskatoon

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June 15, 2001

Deal Creates Jobs in Saskatoon

Hitachi Canadian Industries Ltd. (HCI) of Saskatoon has signed a 10-year, $20 million deal to maintain the turbines at the Queen Elizabeth Power Station in Saskatoon.

"This investment provides high-quality employment opportunities for about 10 people who will join the existing staff of 340," Premier Lorne Calvert said. "Hitachi Canadian Industries of Saskatoon has proven, over many years, to be an excellent supplier of turbine components and expertise. Given SaskPower's support of a local supplier, HCI has proven to be a very important contributor to the provincial economy."

The agreement takes effect on January 1st, 2002 and has an option to renew for another 10 years.

Hitachi will maintain the six new H25 gas turbines that will be installed
as the Queen Elizabeth Power Station is refurbished. Workers started
building the turbines last fall at Hitachi's plant in Saskatoon. The 25-
megawatt units are being assembled and should be installed between July, 2001 and June, 2002.

Hitachi Senior Engineer, Thermal & Hydroelectric Engineering Division Kinichi Suzuki said the signing of the maintenance contract is yet another important milestone in the very successful track record of Hitachi of Saskatoon. "This contract substantiates the confidence Hitachi Ltd. of Japan displayed when HCI was named the North American Service Centre for the H25 last year. It is expected this will create opportunities for further employment growth."

Hitachi Canadian Industries President H. Yamaguchi said this contract is very significant to the future of the plant in Saskatoon. "The agreement has been part of the exceptional local employment growth over the past twelve months. Last June, when HCI opened Building E, there were 265 employees. As of today, the ranks at Hitachi Canadian Industries in Saskatoon have grown by 75 employees to 340. HCI of Saskatoon becomes the principal contact point for technical issues related to the H25 for, not only the Queen Elizabeth Power Station project, but also for the rest of North America."

Yamaguchi also noted the project is leading to increased investment in the Saskatoon plant, with the local operation increasing its inventory of
maintenance supplies, spare parts and 'critical parts', as it gears up as
the North American headquarters for this maintenance work.

For more information, contact:

Larry Christie - SaskPower	Pat Pitka - Hitachi
Phone: (306) 566-3167	Phone: (306) 242-9222
Toll-free: 1-888-536-0000	Saskatoon

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