June  23, 2010

TOKYO, June 23, 2010 - Yamatake Corporation (HQ: 2-7-3 Marunouchi, Chiyoda-ku Tokyo; President & CEO: Seiji Onoki), the core member of the azbil Group, has set a key policy for achievement of its medium-term management plan for the development phase beginning in 2010, by which it will extend its overseas solutions business to promote the role of azbil (automation zone builder) as an instrumentation partner in the global industrial market

As a first step, Yamatake will launch the global azbil evolution program (AEP) aimed at continuous enhancement of the customers' entire operating plant systems (incuding field instruments, distributed control systems, and operation support systems) in order to make the maximum use of existing systems. This program supports long-term stable operation for existing plants by using an incremental development approach, and is being offered to customers worldwide.

Existing systems which are using services of the azbil Group are candidates for the program. More than 10,000 such systems are operating around the world today. In the targeted plants, many of these systems are more than 30 years old. But merely replacing equipment is difficult; often the cost far exceeds the benefit. Investment values are severely scrutinized but capital expenditures plans are made depending on the investment value. For example, in plants that have been operated with satisfactory performance, continuing use (life-extension) for another 15 years is desirable, and can be done with minimum investment.

The azbil group will develop programs that achieve the optimum Total Cost of Ownership (TCO), making maximal use of existing operating systems to meet customers' needs, using strategies such as extensive use of the existing plant, partial renewal, improvement of operating efficiency, etc.

List of Programs tailored to customer's demands, with minimum investment:

1.	Life-span extension program until 2025 - for existing controllers worldwide (more than 30,000 controllers and controller systems), which have been operated for more than 30 years. •Repair or replacement of printed circuit boards incorporated in existing controllers. •New technology controllers which use existing software and databases.
2.	Provision of a new control system that can also use software for more than 10,000 existing distributed control systems worldwide.
3.	Provision of field solutions that add value to existing plants by replacement of control valves or positioners, preventive maintenance, asset management, etc.

Business expansion to implement the program

To support long-term stable operation for customers, Yamatake has already opened valve maintenance centers that provide control-valve maintenance services in China, Thailand, and Taiwan. In addition to existing affiliates in China, South Korea, and ASEAN-member countries, the Asia Solutions Center has been established in Thailand as a pioneer provider of system solution services worldwide, enhancing support for Asia customers. Yamatake is planning to increase its personnel to 300 in the next 4 years for Asian affiliates that offer maintenance services. In addition, the company established a Middle-East office 2 years ago, an Abu Dhabi office last year, and an affiliate in India this April. A new affiliate will be established in Brazil this summer. In addition, to increase business opportunities for Yamatake personnel to have contact directly with major overseas customers, Yamatake will beef up its face-to-face business with major oil suppliers in the Middle East, and try to increase its sales horizontally by sharing best practices with major local companies.

With these measures, Yamatake aims to double its overseas sales in industrial markets to 30 billion yen by 2013.

Background

When Yamatake was Yamatake-Honeywell Co., Ltd. (until 1998), it worked in many overseas plants, but on-site maintenance work was done by Honeywell. After separating from Honeywell, the company initially focused on the sales of field instruments such as transmitters and flowmeters. In the period from 2007 to 2009, it developed an engineering and maintenance system in Asia. In its present development plan, Yamatake will further improve its engineering/maintenance system and revive its overseas system business, accepting more overseas orders.

Yamatake's expertise in incremental development makes a significant difference for customers. When the latest equipment or system is introduced, it is often the case that all existing equipment and systems must be replaced, or that some equipment cannot be replaced with the latest models. Yamatake's principle is introduce as much of the latest technology as is needed, using as much existing equipment as possible. As always, Yamatake's goal is to offer optimum and reasonable solutions that meet customer's needs.