GE, Hitachi Team Up to Compete for New Nuclear Reactor Projects.
GE and Hitachi have completed the first half of their agreement to form a global alliance of their nuclear businesses to compete for new reactor projects.
Called GE-Hitachi Nuclear Energy, it will operate throughout the world, excluding Japan. It is 60% owned by GE and 40% by Hitachi and will be led by the executives of GE's current nuclear business.
In Japan, the business is planning to begin operations in early July and will be called Hitachi-GE Nuclear Energy. It will be owned 80.01% by Hitachi and 19.99% by GE and will be led by the executives of Hitachi's current nuclear business. All entities will share a joint advisory committee.
With climate change and energy security concerns driving a global resurgence in support for nuclear energy, GE and Hitachi said they are combining their nuclear businesses "to become the world's foremost provider" of advanced boiling water reactor (BWR) plants and related services. The newly allied businesses will also offer key equipment and services for pressurized water reactors (PWRs), another light-water reactor design popular in certain countries.
"Our new alliance complements and optimizes GE's and Hitachi's respective strengths, allowing us to offer customers a broader portfolio of technology and services backed by the industry's most extensive and experienced advanced reactor project development supply chain," said John Krenicki, president and CEO of GE Energy.
"By strengthening our existing businesses and positioning our alliance for growth, the breadth of our combined capabilities and experience will be even more impressive in an extremely competitive global nuclear marketplace," added Akira Maru, president and CEO, Power Systems Group, Hitachi, Ltd.
Since the 1980s, GE and Hitachi have worked together in developing Advanced Boiling Water Reactors (ABWRs) in Asia, a design that represents the world's only commercially proven Generation III reactor design.
GE and Hitachi partnered on building the first ABWR units to enter service in the mid 1990s, with Hitachi serving as a key provider of critical components and utilizing the ABWR design for additional new build projects in Japan. There are four ABWRs currently operating in Japan and several more being built in Asia.
"While GE and Hitachi have collaborated for decades in developing advanced BWR projects, there are relatively few overlapping areas in our respective nuclear businesses," said Andy White, president and CEO of GE-Hitachi Nuclear Energy. "As a result, this model will enable us to quickly capitalize on critical business synergies that will add value for our customers around the world."
GE and Hitachi are already two of the three owners of the Global Nuclear Fuel (GNF) joint venture, one of the world's largest nuclear fuel assembly providers. GNF remains a separate business entity from the newly created alliance.
Based in Wilmington, N.C., GE's nuclear business, a part of GE Energy, recently marked its 50th anniversary in the nuclear industry.
((Comments on this story may be sent to email@example.com))
((Distributed via M2 Communications Ltd - http://www.m2.com))
|Printer friendly Cite/link Email Feedback|
|Date:||Jun 6, 2007|
|Previous Article:||Green Media Enterprises Launches New Green Trade Shows In Los Angeles, New York.|
|Next Article:||Reliant Energy Completes Upgrades to Scrubber System at Elizabeth, Pa., Power Plant.|