Tokyo, Japan - January 25, 2006


Yokogawa Receives Long-term Maintenance Contract
for Large-scale Petrochemical Complex in China

Yokogawa Electric Corporation has concluded a long-term maintenance contract with CNOOC and Shell Petrochemicals Company Limited (CSPC)*1 under which it will maintain the instrumentation equipment at CSPC’s Nanhai Petrochemical Complex*2 in Huizhou, China. The contract is for a period of just over four years, from November 1, 2005 to December 31, 2009. Yokogawa will provide round-the-clock support for the Yokogawa products installed throughout the plant, ranging from central control monitoring facilities such as information management systems and FOUNDATION fieldbus™ compatible integrated production control systems to field devices.

Yokogawa recognizes how important the construction of a comprehensive service network is to gaining the confidence of its customers. In addition to the traditional services of after-sales support and supply of parts, we are now exploring new business opportunities involving the provision of advanced preventive and predictive maintenance services. In line with these initiatives, we moved our Global Response Center, the core of Yokogawa’s service system, to the Tokyo headquarters and installed new facilities there in June 2005. We also newly-established a response center in Shanghai in July 2005.

In China, plant owners usually take responsibility for performing maintenance and rarely ask the manufacturer to play a role in this. However, CSPC elected to conclude this long-term maintenance contract with Yokogawa because of their high estimation of our ability to ensure the stable operation of a plant over its entire lifetime. Proactive efforts such as our opening of a service center in Huizhou at the same time their plant commenced operations also helped improve CSPC’s confidence in our ability to provide a timely response to their requests.

Yokogawa continues to expand its service business in China and improve the quality of its services in order to gain customer confidence and win more orders.

*1: CNOOC and Shell Petrochemicals Company Limited (CSPC): a joint venture between Shell Nanhai BV, a member of the Royal Dutch/Shell Group of Companies, with a 50 per cent stake, and CNOOC Petrochemicals Investment Limited (CPIL), also with 50 per cent. CPIL is owned by China National Offshore Oil Corporation (CNOOC) (90%) and Guandong Guangye Investment Group Company (10%), and was founded in December 2000.
*2: Nanhai Petrochemical Complex: a large-scale integrated petrochemicals complex comprising an 800,000 tpa ethylene cracker, and 10  downstream process units producing up to 2,300,000 tons of chemical products in total.