News Releases 2022

Aug. 15, 2022

JGC establishes a new Operations Centre in India

– Responding to the expanding International Plant EPC market  –

Yokohama, Japan- JGC Holdings Corporation announced today that JGC Corporation, which operates the overseas engineering, procurement, and construction (EPC) business of the JGC Group, is founding a new subsidiary company as an Operations Centre based in Chennai, India.

At present energy demand is increasing against the backdrop of the recovery of the global economy in anticipation of a post-Covid-19 environment. In addition, from the viewpoint of energy security triggered by Russia's invasion of Ukraine, oil and gas producing countries are expected to resume large-scale capital investment plans, including LNG. International plant EPC and renewable low and zero carbon energy markets are also expected to expand over the medium to long term.


Given these circumstances, we have determined that securing a new subsidiary with access to significant engineering and technical resources is essential not only for promptly responding to the future expansion of the plant EPC market, but also for realizing the key strategy of the Medium-Term Management Plan BSP2025, " Transformation of EPC operations".


JGC has long recognised the exceptional engineering talent available within India and this new company will allow the wider JGC Group to leverage these resources on upcoming projects world-wide. All JGC Corporation's main engineering disciplines will be represented together with Project Management and IT functions to provide a fully functioning subsidiary. Chennai has been chosen as the location due to its excellent talent pool availability and high quality of educational facilities to support our future growth.

The new JGC India Operations Centre will offer equal employment opportunities, providing a rewarding career to those with the appropriate skills and educational qualifications. We will also engage with the local universities to foster the next generation of engineers to become part of the future JGC. The new subsidiary will commence operations in November of this year and aims to have approximately 250 engineers by March 2023. We also plan to expand this to a system of 1000 engineers by 2040. At the time of its establishment, the new subsidiary mainly serves as a detailed engineering works for large-scale overseas EPC projects ordered by JGC. In the future, the subsidiary will aim to become an EPC execution base for projects by securing the necessary human resources.

JGC Corporation operations comprise of Energy Solutions, Sustainable Solutions, Facilities Infrastructure Solutions, Project Solution Centre and JGC Asia Pacific regional business. The new India Operations Centre is expected to support the growth of each of these businesses as we meet the challenges to reduce carbon through Energy Transition and provide sustainable and energy efficient infrastructure for our customers around the world.

The JGC Group continues on its path towards internationalisation and regional operating centres are expected to gain further prominence as these capabilities are established.


<Outline of a new subsidiary in India>

Company name: TBA
Location:

Chennai, Republic of India

Representative:

Sten Jacobsson, Managing Director (Executive Officer, JGC Corporation)

Capital:

1 million Indian rupees (equivalent to US$13,000)

Investor:

JGC Corporation 99%, JGC ASIA PACIFIC PTE. LTD. 1%