1999 Press Releases-06

Tokyo, Japan - October 5, 1999

Yokogawa is in the final stages of forming an alliance with Shell Global Solutions in the advanced process control system business

Yokogawa Electric Corporation (headquarters: 2-9-32 Nakacho, Musashino-shi, Tokyo 180-8750, Japan; president: Isao Uchida; capital: 32.306 billion yen) is in the final stages of forming an alliance in the field of advanced process control technology for operations at petroleum, petrochemical and chemical plants, with Shell, one of the petroleum majors. Under the agreement, Yokogawa will be able to market the advanced process control software tools and engineering technology developed by Shell for operations at petroleum and gas plants around the world, through Yokogawa's global distribution channels to the world market. Outline of Alliance
The advanced process control for operations at plants is a middle-system connecting a Distributed Control System (DCS) which is designed to monitor and control operations at petroleum, petrochemical and chemical plants, and a Manufacturing Execution System (MES) which is an upper level information system for production control and planning. This latest software which utilizes complicated algorithms for multiple variable predictive control and optimization control, is regarded as not only a core product which helps to improve the stabilization and optimization of operations at plants using the DCS system, but it also plays an important role in connecting the upper level information system for production control and planning with the control system for operations in the production field. This is a key system, which determines how to add values to the process control system as a whole and is responsible for achieving high quality and cost reduction. For those reasons, customers are increasingly requiring that those advanced process control tools be delivered together with the most upper level control functions of the DCS system.

Under this agreement, Yokogawa will be able to obtain Shell's know-how of both the advanced process control software SMOC and engineering technology, and market this software and other know-how as a package through Yokogawa's global distribution channels. This SMOC package and engineering technology will become a powerful business tool for Yokogawa to expand its own control system business to the world market.

This alliance will allow Yokogawa to cement its position in the world's plant control system market and will help it to advance one step further forward in its solutions business which is promoted under Yokogawa's concept of Enterprise Technology Solutions (ETS).