TOKYO, Japan - December 6, 2012 - ORIX Corporation (TSE:
8591; NYSE: IX), a leading integrated financial services
group, today announced capital participation in STX Energy
Co., Ltd., an energy business in the STX Group, a leading
South Korean corporation. ORIX will acquire a maximum of
49.9% by accepting common shares of STX Energy held by the
STX Group and other minority shareholders, and the issuance
of new preferred shares by STX Energy.
STX Energy is an energy company involved in cogeneration,
IPP, and energy distribution. The main business line is
cogeneration, where STX Energy currently operates two
large-scale co-generation plants located in two industrial
parks in South Korea that result in stable profit
recognition.
In the IPP business, STX Energy invested jointly with Korea
Electric Power Corporation (KEPCO) subsidiary Korea
East-West Power Company, Ltd., and as South Korea's
first public/private coal-fired thermal power IPP operation
is developing a cutting-edge ultra supercritical coal-fired
thermal power plant with high efficiency and low
environmental impact in Gangwon Province. This facility
aims to become a new primary source of revenue in the IPP
business with an expected capacity of 1,190 MW (1,190,000
kW) and operation set to begin in 2016.
In addition to the capital participation, ORIX will
actively participate in the management of STX Energy by
selecting and dispatching directors and establishing a
joint management framework. Through this, ORIX aims to
further improve existing operations in addition to
promoting stable operation of the under construction ultra
supercritical coal-fired thermal power plant as a joint
operation.
Electricity demand in South Korea is growing faster than
government forecasts, centered on industrial consumption.
South Korea is facing a critical electricity shortage with
the current reserve rate falling below the 10% safety
margin. IPP businesses currently account for approx. 10% of
total electricity in South Korea. However, with the
continued future growth of electricity demand expected, the
demand for an IPP using a highly efficient ultra
supercritical coal-fired thermal power plant is expected to
increase. Through the joint management of STX Energy, ORIX
plans to expand the electricity market in South Korea and
aims to provide stable electricity supply.
Along with pursuing the energy and environment business
both in Japan and overseas, ORIX will actively increase
investment in growth industries in the growing Asian
market.
Overview of STX Energy
Company name
Location
Representative
Established
Website
Businesses
ORIX Corporation is a financial services group organized around 9 business divisions:
- life insurance (19.3% of net sales);
- corporate financial services (17.6%): leasing and rental of automobiles, IT-related and technological equipment;
- development, management and promotion of real estate assets (15.5%);
- private equity investment (15.3%);
- asset and investment fund management in Europe (8.8%);
- capital markets and investment banking in the United States (6.4%);
- finance and investment banking in Asia and Australia (5.9%);
- retail banking and consumer finance (3.4%);
- aircraft and ship leasing and financing (1.5%).
The balance of net sales (6.3%) relates to energy and environmental activities (renewable energy production, electricity distribution, sale of solar panels and electricity storage systems, recycling and waste management).
ORIX CORPORATION 
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