Sumitomo Corporation, NEC Group, Toshiba, and Morita Receive Order for Supply of Airport/Aviation Security Infrastructure in

  Sumitomo Corporation, NEC Group, Toshiba, and Morita Receive Order for
  Supply of Airport/Aviation Security Infrastructure in Myanmar

    --Concluded agreement on ODA grant-funded "Project for Improvement of
                  Nationwide Airport Safety and Security"--

Business Wire

TOKYO -- September 19, 2013

Sumitomo Corporation (head office: Chuo-ku, Tokyo; President and CEO: Kuniharu
Nakamura), together with NEC Corporation (head office: Minato-ku, Tokyo;
President: Nobuhiro Endo; hereinafter, “NEC”), NEC Networks & System
Integration Corporation (head office: Bunkyo-ku, Tokyo; President: Masao Wada;
hereinafter, “NESIC”), Toshiba Corporation (head office: Minato-ku, Tokyo;
Director, President and CEO: Hisao Tanaka; hereinafter, “Toshiba”), and Morita
Corporation (head office: Sanda-shi, Hyogo Prefecture; President: Masahiro
Nakajima; hereinafter, “Morita”), concluded an agreement on September 10 with
the Department of Civil Aviation, Ministry of Transport, Republic of the Union
of Myanmar on the “Project for Improvement of Nationwide Airport Safety and
Security” (hereinafter, “the Project”)

Exterior view of Dawei Airport (one of the airports scheduled for installation
of an air traffic con ...

Exterior view of Dawei Airport (one of the airports scheduled for installation
of an air traffic control system) (Photo: Business Wire)

This Project is designed to help improve aviation safety at Myanmar’s major
airports (Yangon, Mandalay, Nyaung U, Heho, Thandwe, and Dawei). To satisfy
the International Civil Aviation Organization (ICAO) safety standards,
equipment such as Doppler VHF omnidirectional radio range beacons and distance
measuring equipment (*1), flight procedure design systems, various
aeronautical lights, and communication control units will be supplied to
improve air traffic safety; and fire engines, X-ray screening machines,
explosive detection devices and other equipment for airport security will be
installed as necessary. The Project is expected to enhance Myanmar’s airports’
capacity to handle the burgeoning air traffic in the region by improving the
safety and reliability of air transport and establishing more efficient air
routes.

Aviation demand in Myanmar is increasing each year in both the number of
passengers and the volume of cargo. It is viewed that the country’s aviation
sector will most certainly increase in importance as it achieves greater
economic development, however the installation of aviation safety facilities
and airport security equipment is severely delayed. Many local airports in
particular still do not have adequate radio navigation facilities, and
aircraft rely on low-precision instruments or visual contact, making it
difficult to cope with sudden changes in the weather or other contingencies.
Furthermore, some local airports do not have adequate detection equipment for
explosives and many improvements in the inspection procedures are necessary.
In view of these circumstances, the government of Myanmar requested to the
Japanese government for continued assistance in airport/aviation security and
the provision of urgently needed equipment. In response to this request, an
exchange of notes took place between the governments of Myanmar and Japan on
March 22, 2013, with a grant agreement concluded between the Japan
International Cooperation Agency (JICA) and Myanmar that pledged 1.233 billion
yen in Official Development Assistance (ODA). The Civil Aviation Bureau of
Japan’s Ministry of Land, Infrastructure, Transport and Tourism has also been
supporting aviation infrastructure upgrades internationally since 2011 through
various meetings and conferences, and they’re expected to start up medium- to
long-term assistance programs for Myanmar.

Sumitomo Corporation as the prime contractor for this Project will be
responsible for overall coordination. Myanmar is positioned as one of the
company’s key business regions in Sumitomo Corporation’s medium-term
management plan. Involved in businesses such as the creation of an industrial
park in the Thilawa Special Economic Zone, Sumitomo Corporation in May 2013
received an order with NEC and other partners to make urgent improvements to
communications networks, followed in June 2013 by an order for a project to
improve railway safety and service, the company has been comprehensively
engaged in a full range of infrastructure construction and improvement efforts
in Myanmar. It is also steadily building up a record of performance in the
area of air traffic control systems, receiving orders in November 2010 from
the Philippines and in August 2013 from Laos. Sumitomo Corporation will
continue to seek orders for air traffic control projects in Asia and elsewhere
to further boost aviation safety.

NEC will be providing the Project with Distance Measuring Equipment (DME) for
radio measurement of distances between aircraft and aeronautical stations,
while NESIC will be developing the relevant systems for radio communications
and undertaking a full spectrum of tasks in building airport/aviation security
infrastructure.

The NEC Group has been involved in the construction of Myanmar’s
communications infrastructure for 35 years, including telephone switchboard
equipment, radio communication devices, satellite earth stations and
broadcasting systems. An NEC branch office opened in Yangon in February 2013,
which, in conjunction with execution management by NESIC (Thailand) Ltd., a
NESIC’s Thai subsidiary, is putting in place the structures needed to support
the development of communications networks in Myanmar. As noted above, it
joined with Sumitomo Corporation and others in a project to make urgent
improvements to communication networks, receiving orders to build fiber-optic
backbone communications networks linking three cities in Myanmar as well as
LTE communications infrastructure within these cities. In August 2013, NEC
also opened an office in the capital city of Naypyidaw. In addition to
undertaking the Project, NEC aims to assist with the future needs of Myanmar’s
public offices, local companies and other customers by, for instance,
providing international communications networks via seabed cables, ICT
infrastructure for rapidly developing industrial parks, disaster prevention
solutions, security and e-government solutions, as well as servers and other
high-volume retail items.

Toshiba will contribute to the Project by supplying three major airports,
Nyaung U, Heho, and Thandwe, with Doppler VHF omnidirectional radio range
(DVOR) beacons, the Project’s principal air navigation systems. Toshiba has
extensive experience in supplying air navigation systems in Japan and
overseas, and continues to promote technology innovation that help to improve
air traffic safety and efficiency.
Toshiba Group has sold home electronics to Myanmar from its base in Singapore
since the 1980’s, and in social infrastructure, the company provided equipment
for the Sedoci Hydropower Plant in 1985. Most recently, Toshiba Asia Pacific
opened an office in Yangon in April 2013 that will allow Toshiba to establish
a stronger presence in the country and support Myanmar's economic development.
Toshiba will strive to further contribute to Myanmar, and internationally, by
providing high-quality, high-performance air navigation systems.

Morita under this Project will be in charge of providing aircraft rescue fire
fighting vehicles and equipment for Yangon, Dawei, Nyaung U, and Heho
airports. In line with its slogan of “protecting human life and Mother Earth,”
Morita develops, manufactures and sells a broad range of products, including
aircraft rescue fire fighting vehicles and other fire trucks (pumper trucks,
ladder trucks, rescue vehicles, and fire engines for industrial complexes).
Since its establishment in 1907, Morita as a top manufacturer of fire-fighting
and disaster-prevention vehicles has been in great part responsible for the
development of fire-fighting technology in Japan, and its sales efforts now
extend beyond Japan to countries in Asia, the Near/Middle East and Africa. The
foundations of the Morita Group’s business lie in its full-hearted commitment
to manufacturing and, as it takes on the challenge of manufacturing products
of even higher quality, it will be safeguarding the air gateways into Myanmar
through this Project as the country pursues rapid development.

By building airport/aviation security infrastructure in Myanmar, where
continued economic development is anticipated, Sumitomo Corporation, NEC,
NESIC, Toshiba and Morita will work to complete this Project promptly to
enhance the country’s infrastructure safety and reliability. These companies
also intend to cooperate in drafting proposals for upgrading aviation security
infrastructure at other major local airports not covered by this Project.

(*1) Doppler VHF omnidirectional radio range beacons and distance measuring
equipment: A type of radio air signals, it is the “lighthouse for airplanes”,
and installed in points in the airport and on the runway. DVOR measures the
direction of the airplane in relation to the DVOR, and a DME measures the
distance from the airplane to the DME. It is standard for a DVOR and DME to be
installed together as one set.

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Contact:

[Inquiries on this matter should be directed to:]
Sumitomo Corporation
Nakamizo, Corporate Communications Department
TEL: +81-3-5166-4168
or
NEC Corporation
Oto, Corporate Communications Division
TEL: +81-3-3798-6511
or
NEC Networks & System Integration Corporation
Takasu, Corporate Strategy Planning Division
TEL: +81-3-6699-7007
or
Toshiba Corporation
Atsushi Ido, Corporate Communication Office
TEL: +81-3-3457-2105
or
Morita Corporation
Urano, Corporate Communication Department
TEL: +81-3-5777-5088