Yokohama, Japan - JGC Corporation has announced today that the company will institute a structural reform and personnel reorganization effective August 1, 2007. Among the reasons for doing this is enhancement of project execution capabilities to meet the demands of the currently booming plant construction market, as well as raising the level of technology development skills and increasing EPC technological abilities. Outlines of the reforms and the reorganization are provided in the following.

1. Enhance project execution capabilities

• Assign hydrocarbon projects to one of the two renamed project divisions
  Certain functions belonging to the present Energy Project Division, which has long been responsible for overseas hydrocarbon projects, are being transferred to the Industrial Project Division as it is presently known. Henceforth, overseas hydrocarbon projects are to be executed by one of the two newly named divisions, the renamed No.1 Project Division or the No.2 Project Division, corresponding respectively to the former Energy Project Division and the Industrial Project Division.
  
  In addition to taking over the life science, nonferrous metals, nuclear power, and environmental-related projects currently performed by the Industrial Project Division, the No.2 Project Division will execute hydrocarbon projects in Algeria, certain overseas hydrocarbon projects and resource development-related projects.
  
  

• Establish an efficient overseas project execution structure
  The current department responsible for procurement and construction in the Energy Project Division will become an independent division known as the Project Operation Services Division. The new division will take on the equipment and material procurement and construction jobs of overseas hydrocarbon projects performed by the No.1 Project Division and the No.2 Project Division. This structure will assure efficiency in carrying out projects overseas.
  
  

• Take measures to meet the demands of the Japanese hydrocarbon market
  The Domestic Project Division within the Energy Project Division will become an independent entity from the standpoint of enhancing corporate ability to respond to the domestic hydrocarbon market which is experiencing brisk investment in equipment.

2. Enhance technology development skills

• Establish a Technology & Engineering Division
  The level of technological capabilities will be raised by effectively utilizing human resources while simultaneously revitalizing communications between employees. To do so, the current Engineering Division and Research & Development Division will be consolidated into the new Technology & Engineering Division. Furthermore, a new group will be established called the Advanced Technologies & Promotion Group within the Technology & Engineering Division to shorten the time spent on in-house technology development, while actively introducing technologies from outside the company.

3. Craft mid-to-long-term management strategies

• Establish a Corporate Strategy Office
  To preview management policies from a mid-to-long-term viewpoint, and to build new business models, a division level office called the Corporate Strategy Office will be newly established.