-- Move to Strengthen Ties between Japanese and French Nuclear Energy Industries --
- 5 percent equity stake in Orano acquired based on formal agreement signed in March 2017
- Technological and business cooperation ties to be enhanced, strengthening global value chain for nuclear energy
TOKYO--(BUSINESS WIRE)--Mitsubishi Heavy Industries, Ltd. (MHI)(TOKYO:7011) has completed investment into Orano, a newly formed company created as part of the reorganization of the AREVA Group. Orano primarily focuses on the fuel cycle business, including uranium mining, enrichment and conversion and reprocessing of spent fuel. Previously referred to as “New AREVA Holding”, Orano possesses advanced technological and marketing strengths within the global nuclear energy industry, and the new company is expected to achieve solid growth going forward. MHI has acquired a 5 percent equity stake in Orano with a total investment outlay of approximately 250 million euros. With the completion of this investment, MHI will now pursue deeper, more expansive human and technological exchange with Orano.
MHI has built strong ties with France’s nuclear energy industry over many years. In 1991, in partnership with AREVA NC (now a subsidiary of Orano) MHI established a joint venture in the fuel cycle business that engages in the manufacture and sale of a full range of reprocessing equipment. In 2007, MHI and AREVA NP (now Framatome) began development of a pressurized water reactor (PWR) nuclear power plant (NPP) integrating their technologies, culminating in the development of ATMEA1, a state-of-the-art PWR NPP in the 1200 MWe (megawatt electrical) class. Since its introduction, prospects for ATMEA1 sales have been expanding worldwide, especially in emerging economies where new NPP construction projects are moving forward.
Through its investment in Orano, MHI looks to support the company’s future growth strategies. Further, by strengthening cooperation in technology and business operations, MHI aims to play an important role in forging stronger links between the Japanese and French nuclear energy industries, as confirmed by the two countries’ governments in October 2015, with the ultimate goal of strengthening their global value chain in the nuclear energy business.
Commenting on the completed investment, MHI President and CEO Shunichi Miyanaga said, “For many years Orano has lent its support to the development of nuclear power generation in Japan. Now, with completion of our investment into Orano, our partnership will become even stronger. I have high hopes that we will be able to further improve the safety and reliability of nuclear power generation, thereby contributing to stable global energy supplies and reduced carbon dioxide emissions.”
In parallel with the Orano investment, in late December MHI completed an investment in Framatome, a newly established group company of Electricité de France (EDF) specializing in the design and manufacture of NPP equipment and systems. By strengthening the relationship between manufacturers in Japan and France, every effort will be made to expand and improve structurally as a comprehensive manufacturer capable of supporting the global nuclear power generation business in all aspects; from production of nuclear fuel to plant design, construction and maintenance, and reprocessing of spent fuel.
About Mitsubishi Heavy Industries Group
Mitsubishi Heavy Industries, Ltd. (MHI), headquartered in Tokyo, is one of the world’s leading industrial firms with 80,000 group employees and annual consolidated revenues of around 38 billion U.S. dollars. For more than 130 years, the company has channeled big thinking into innovative and integrated solutions that move the world forward. MHI owns a unique business portfolio covering land, sea, sky and even space. MHI delivers innovative and integrated solutions across a wide range of industries from commercial aviation and transportation to power plants and gas turbines, and from machinery and infrastructure to integrated defense and space systems.
For more information, please visit MHI’s website: www.mhi.com/index.html
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Mitsubishi Heavy Industries, Ltd.
Joseph Hood, +81-(0)3-6716-2168