13We are working on increasing profitability throughout the entire Group by developing new
business areas. We are focusing our management resources on four areas that best reflect the
Group's facilities, technology, expertise and brand power: total energy, communication
networks, and consumer service, and environmental recycling.
New Business Areas
Total energy
(1) Gas
Kyushu Electric Power has two plants (in Kitakyushu and Oita) that obtain, gasify, and distribute
liquefied natural gas (LNG). We plan to make effective use of these resources by actively developing
gas-related business areas such as gas supply or LNG sales.
Using these resources to sell LNG will enable us to expand our sales to general gas companies and
large power users. We will also actively promote the use of gas for decentralized power such as
gas-based private power generation or cogeneration.
a. Gas supply
Our consolidated subsidiaries Kitakyushu Liquefied Natural Gas Company Inc. and Oita Liquefied
Natural Gas Company Inc. have already started supplying gas to Seibu Gas and Oita Gas on a wholesale
basis. The November 1999 deregulation of the gas business has expanded the possibilities for supply to
large power users, and regulations enabling gas suppliers to share lines has made gas pipelines available
to new companies in the market. In this new arena, we are seriously looking into opportunities to
supply large power users by contracting out the distribution work.
New business
areas of
Kyushu
Electric Power
Group
Total energy
• Gas
• Decentralized power
• Overseas IPPs for domestic gas transport
Environmental recycling
• Fluorescent bulb recycling
• Confidential document recycling
• Waste-based generation
Communication networks
• Class one telecommunications
• Fiber-optic cable core rental
• High-speed Internet connection
service
• Data centers
Consumer services
• Housing for the elderly with
nursing care services
• Housing assessments 14b. LNG sales
We are planning to sell LNG to city gas companies through our affiliate Kita Kyushu Liquefied
Natural Gas.
Developments
• We will start selling LNG to two companies outside the Kyushu region (Shikoku Gas, Okayama
Gas) in August 2003, using the first ship specialized for domestic gas transport.
• In collaboration with Nippon Steel Corporation and Japan Petroleum Exploration, Kitakyushu
Liquefied Natural Gas established Kitakyushu LNG Sales and Lorry Transport Corp in December
2000. The new company transports LNG by tanker trucks, for sale to two Kyushu companies
(Chikushi Gas and Nogata Gas).
c. Decentralized power
Our affiliate Nishinippon Environmental Energy Co.,Inc. has been preparing to enter the decentralized
power market since December 2000.
(2) Overseas projects
a. Tuxpan IPP project (Mexico)
An IPP (independent power producer) project undertaken with Mitsubishi Corporation for a gas
combined plant with an output of 495 MW.
b. Ilijan IPP project (Philippines)
An IPP project undertaken with Korea Electric Power Corporation, Mitsubishi Corporation and
Southern Energy (US) for a gas combined plant with an output of 1,200 MW.
c. Tanawon Geothermal project (Philippines)
In collaboration with Philippine National Oil Company–Energy Development Corporation, we have
been conducting a feasibility study on geothermal generation since 1999.
d. Consulting work for Thailand's Provincial Electricity Authority
In February 2001, we successfully bid on a consulting project open to companies from around the
world, tendered by Thailand's Provincial Electricity Authority (PEA). The consulting work started inMay.Communications networks
(1) Fiber optic cable core rental
In August 2000, we started renting the fiber optic cable core we have laid to telecommunications and
cable TV companies.
In fiscal 2000, we laid about 1,000 km of fiber optic cable in and around the cities of Fukuoka and
Kitakyushu, and signed agreements with four cable TV and other communications companies to rent a
total of 300 km of cable core.
Between fiscal 2000 and 2005, we plan to invest 40円 billion in 21 cities of over 100,000 people in
Kyushu, and lay a total of 19,000 km of cable. 15(2) High-speed Internet connection service
As part of our research on business based on fiber-optic technology, we started testing a system
combining wireless and fiber-optic technology in October 2000, using our Fukuoka customers as test
subjects. We plan to expand the scope of the test and the content provided, and will start a test service
aimed at future commercialization in fall 2001.
We are continuing to investigate how to increase the speed of Internet services offered through
low-voltage power distribution lines, aiming to make them commercially viable.
(3) Japan–Korea IT Optical Corridor Project
In collaboration with Korea Telecom Co.,Ltd., Japan Telecom Co.,Ltd. and NTT Communications
Corporation, we plan to link Fukuoka Prefecture and Pusan, Korea, with two sets of highly reliable
non-relay fiber-optic cables, totaling about 250 km in length.
The total cost of laying the cables will be about 6円.8 billion, of which 2円.7 billion (40%) will be
supplied by Kyushu Electric Power. The work started in May 2001. The lines should be operational by
the end of March 2002, enabling capacity and core rental to start in time for the World Cup in May.
The World Cup could cause an explosive rise in demand for communications between Japan and
Korea. we will continue to research business areas that can make use of the cables. We plan to use the
cables to take advantage of Kyushu's position as a natural information relay point between Japan and
the rest of Asia.
(4) IT
In September 2000, we established Kyuden Infocomm to engage in a variety of IT-related business
areas such as consulting and data centers.
Consumer services
(1) Housing assessments
In August 2000, we established Kyushu Housing Guarantee to provide damage guarantees
and housing assessments to builders or other housing providers.
(2) Housing for the elderly with nursing care services
In October 2002, we plan to establish Kyuden Good Life, a provider of nursing care
services and housing for the elderly.
Environmental recycling
(1) Fluorescent bulb recyclingJ・
Re-Lights, a company we established to recycle used fluorescent bulbs, came online in July 2001.
(2) Confidential document recycling
In May 2001, we established Kyushu Environmental Management Corporation, a confidential
document recycler. The company is scheduled to start business in October.
(3) Waste-based generation
In October 2000, Kyushu Electric Power and the city government of Fukuoka established Fukuoka
Clean Energy Corporation, a company that generates power from waste materials. The new company
is slated to come on line in October 2005.
Group
Companies
Facilities Construction
Electrical, engineering, surveys, design,
construction and construction
management
Supplies Sourcing
Manufacturing and selling electrical
equipment and instruments for the
provision of power and shipping
construction supplies and general goods
Electric Power Wholesalers
Telecommunications Business
Providing telephone lines and wirelines,
cellular, and PHS phone services
Heat Supply Business Other Businesses
Maintaining Facilities
Managing forests to conserve water
resources, renting office space, preserving
the natural surroundings of power stations,
developing software, and handling
transmission line-site operations
Securing Energy Sources
Obtaining, storing, gasifying and supplying
LNG, acquiring and selling uranium ore
□しろいしかくTobata Co-operative Thermal Power
Company, Inc.
□しろいしかくOita Co-operative Thermal Power
Company, Inc.
■しかくNishi Nippon Plant Engineering
Construction Company
■しかくWest Japan Engineering
Consultants, Inc.
□しろいしかくKyudenko Corporation
□しろいしかくKyuken Co., Ltd.
□しろいしかくNishigi Kogyo
Koyou Denki Kogyo Co., Ltd.
■しかくKYUKI CORPORATION
■しかくNishimu Electronics Industries Co., Ltd.
Kyushu Keisou Engineering
Nishi Nippon Airlines Co., Ltd.
Kyuden Transport Co., Ltd.
Kyushu Koatsu Concrete Industries
Co., Ltd.
□しろいしかくKyushu Transformer Co., Ltd.
Nishi Nihon Denki Tekkou Co., Ltd.
SEISHIN CORPORATION
■しかくKitakyushu Liquefied Natural Gas
Company Inc.
■しかくOita Liquefied Natural Gas
Company Inc.
Japan Australia Uranium Resource
Development Co., Ltd.
Kyuden International Corporation
■しかくCapital Kyuden Corporation
Kyuden Information Communication Inc.
J.Re-Lights Co.,Ltd.
Kyushu Housing Guarantee Inc.,
Kyuden Good Life Company Inc.,
Kyushu Environmental
Management Corporation
Kyuden Ilijjan Holding Corporation
Kyushu Highlands Development Co., Ltd.
Fukuoka Urban Development Co., Ltd.
Fukuoka Clean Energy Co., Ltd.
Electricidad Aguila de Tuxpan
Kyushu Rinsan Co., Inc.
■しかくDenki Building. Co., Ltd.
■しかくKYUDEN INDUSTRIES Co., Ltd.
■しかくKyuden Information Services Co., Inc.
■しかくForest Co., Ltd.
■しかくKyushu Telecommunication Network
Co., Inc.
■しかくNishinippon Environmental Energy
Company, Incorporated
Note:
1. The blue-colored companies mean our subsidiaries (■しかく means consolidated companies), and the black-colored companies mean our affiliate companies
(□しろいしかく means companies to which an equity method is applied at the time of consolidated financial settlements)
2. Subsidiaries: Companies whose decision making process is controlled by us as seen from a financial, sales or administrative perspective.
Affiliates: Companies, other than subsidiaries, on which we have an important influence as seen from a financial, sales or administrative perspective.
3. The main companies of the 48 group companies are listed.
Group Companies
(As of July 1, 2001)16