Metal One Metal One Coporation

December 17, 2012

Metal One Signs Memorandum of Investment and Participation in Myanmarese Transformer Manufacturer

A ceremony was held on Saturday, December 15 to sign a memorandum of investment and participation in Asia General Electric Co., Ltd. (AGE) between AGE, Metal One Corporation (headquartered in Minato-ku, Tokyo; President: Naoto Matsuoka), and Meidensha Corporation (headquartered in Shinagawa-ku, Tokyo; President: Junzo Inamura). AGE is a manufacturer and seller of transformers for power companies in the Republic of the Union of Myanmar.

President Win Aung of the Union of Myanmar Federation of Chambers of Commerce and Industry, minister counselor of the Japanese Embassy in Myanmar Ichiro Maruyama, Japan External Trade Organization (JETRO) representatives, and Myanmarese business representatives attended the ceremony at the Sedona Hotel Yangon in Yangon, Myanmar. Takehiro Honda, Metal One executive officer and chief regional officer of ASEAN and Oceania; Meidensha executive vice president Kozo Masaki; and AGE Chairman Chit Khaing were on hand to sign the memorandum.

Myanmar, which has shifted the tiller strongly toward democratization in recent years, has a population of more than 62 million, and developing the country's electric power infrastructure will be indispensable to meeting electric power demand here as economic reforms bring increasing prosperity.

Myanmar's existing transformer substations have deteriorated markedly. As a result, of the approximately 6.2 billion kilowatts of electric power are generated annually, only about 4.3 billion kilowatts are sold—in other words, around 30 percent of the power generated goes unused. Since this seriously impedes economic development, the rapid creation of an efficient electric power grid is required.

AGE is Myanmar's largest transformer manufacturer. By using the latest transformer manufacturing technology gained through recent technical cooperation with Meidensha, AGE will produce a complete new line of large to small transformers that would be used to refurbish or replace the country's aging facilities. Meidensha will be laying the foundations for a new transformer manufacturing and sales organization in Myanmar to complement its Singapore business base.

Metal One will supply AGE with grain-oriented electrical steel sheet and other types of sheet for transformers, thereby contributing to the advancement of Myanmar's economy.

Specific equity stake ratios and monetary amounts will be assigned in accordance with Myanmar's new law governing investments by foreigners, and the three firms will discuss and review these totals.

AGE Outline

1. Name: Asia General Electric Co., Ltd.
2. Location: Yangon, Myanmar
3. Representative: U Khin Maung Myat
4. Business line: Manufacture and sales of transformers for power companies
5. Capitalization: Approx. US$6,024,000
6. Established: 2008
7. Sales volume: Approx. US$15,300,000 (consolidated basis, year ended March 2012)
8. Number of employees: Approx. 200 (consolidated basis, year ended March 2012)
Meidensha Outline
1. Name: Meidensha Corporation
2. Location: Shinagawa-ku, Tokyo
3. Representative: Junzo Inamura
4. Business line: Manufacture and sales of products related to power generation, transmission, transformation, and distribution for power companies, government agencies, railroads, road, and private-sector facilities
5. Capitalization: ¥17.07 billion
6.  Established: 1917
7. Sales volume: ¥181.106 billion (consolidated basis, year ended March 2012)
8. Number of employees: 7,145 (consolidated basis, year ended March 2012)
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