2006 Press Releases-27

Tokyo, Japan - November 8, 2006

Yokogawa Concludes Strategic Partnership Agreement
with Russia's JSC "Sibur Holding"

Yokogawa Electric Corporation has signed a strategic partnership agreement with JSC "Sibur Holding", an enterprise comprised of about 30 petrochemical and chemical companies located in Russia. Under this agreement, Yokogawa's CENTUM CS 3000 and field instruments will be introduced on a priority basis in the control systems at a majority of the factories operated by Sibur Holding. It is expected that this will lead to an increased number of orders for projects involving Sibur Holding's factories. 

Yokogawa is the only instrumentation manufacturer that has a strategic partnership agreement with Sibur Holding.

Yokogawa has had a foothold in the Russian market since 1993, when it opened a representative office in Moscow. In 1997, Yokogawa Electric Ltd. was founded to launch business on a full-scale. Since the name of the company was changed to Yokogawa Electric CIS Ltd. in 2005, the company has been making aggressive efforts to develop business not only in Russia, but also in other CIS states. In addition to technical centers in two different locations for customer support, the company has opened representative offices in the Russian cities of Perm and Tobolsk as well as in Kazakhstan. The efforts that we have been making to strengthen our business network in the CIS will continue into the future.

LLC Tobolsk-Neftekhin, a subsidiary of the Sibur Group and its largest enterprise in western Siberia, became Yokogawa's first Russian customer 20 years ago. Since its establishment, the Sibur Group has highly evaluated Yokogawa's technological strengths, stance of suggesting solutions from the customer's perspective, and customer-centric support system. Sibur's positive evaluation of Yokogawa has led to a trusting relationship between the two organizations. Recently, Yokogawa and Sibur decided to sign the aforementioned strategic partnership agreement to build an even stronger long-term relationship.

Yokogawa builds strong relationships with customers by providing them with optimal solutions using leading edge technologies. We are advancing steadily toward the achievement of our goal of being the number one player in the global IA market by the year 2010.

* About Sibur Holding:
Sibur Holding is a vertically-integrated holding company with more than 30 petrochemical and chemical companies in Russia, and is involved in fields ranging from gas purification to tire production. Sibur Holding is registered in St-Petersburg and its President is Alexander Dyukov. Gazprom holds 100% of Sibur Holding's stock, with Gazprom Ltd. holding 25% plus one share and JSC Gazprom Bank holding 75% minus one share.