Aeva, Mitsubishi group companies to launch jointly nuclear fuel business

French nuclear energy firm Areva SA and Mitsubishi Heavy Industries plant to jointly invest in a dedicated nuclear fuel fabrication facility in the US.

In addition three Mitsubishi group companies - Mitsubishi Heavy Industries, Ltd. (MHI), Mitsubishi Materials Corporation (MMC) and Mitsubishi Corporation (MC) - along with Areva will jointly enter nuclear fuel fabrication, in a bid to capitalise on the growing global demand for nuclear reactors.

To begin with they plan to launch a new company during the first half of 2009 by restructuring the existing nuclear fuel fabrication firm Mitsubishi Nuclear Fuel Co, Ltd. The new company will be a full-fledged nuclear fuel supplier, integrating development, design, manufacturing and sales of nuclear fuel.

The revamped Mitsubishi Nuclear Fuel Co will supply Japanese nuclear power plants uranium fuel assemblies for pressurised water reactors, boiling water reactors and high-temperature gas-cooled reactors, as well as uranium-plutonium mixed oxide (MOX) fuel assemblies, and also provide related services, including reconversion.

The company also expects to enter overseas markets as a supplier of MHI-designed fuel assemblies for presurised water reactors.

Areva and its Japanese partners plan to pour in their technology to the new firm to strengthen its nuclear fuel fabrication capabilities in response to the increasing trend of nuclear power generation globally, amidst increasing efforts to control global warming.

In addition Mitsubishi Heavy Industries, Mitsubishi Materials Corporation and AREVA will transfer their related business to the "new" Mitsubishi Nuclear Fuel Co, while Mitsubishi Corporation will help to capitalise it by taking a 5-per cent stake.

Acordingly, the shareholding of the four partners in the new company will take Mitsubishi Heavy Industries' stake to 35 per cent, while Areva and Mitsubishi Materials Corporation will hold an equal 30 per cent each. The remainging 5 per cent will be held by Mitsubishi Corporation. The "new'' Mitsubishi Nuclear Fuel Co will have around 550 employees and expects ¥50 billion (€400 million / approximately $660 million / Rs3,120 crore) in sales by 2020.