The new company will be a full-fledged nuclear fuel supplier, integrating development, design, manufacturing and sales of nuclear fuel.
According to the company, the agreement outlines the business scope, organization principles and the detailed process toward the establishment of the new company. The four partners are entering into detailed discussions with the target of having the new company established during the first half of 2009.
The new company will be established by restructuring the existing Mitsubishi Nuclear Fuel (MNF), which is located in Tokai-mura, Ibaraki Prefecture. Mitsubishi Heavy Industries (MHI), Mitsubishi Materials Corporation (MMC) and Areva will transfer their related business to the new MNF, and Mitsubishi Corporation (MC) will subscribe to the new shares to be issued.
Under this scheme, MNF is set to evolve as a nuclear fuel company. MHI will own 35% in the joint venture company, while MMC will own 30%, Areva 30% and MC 5%. The new company will have around 550 employees and expects E400 million in sales by 2020.
The new company will supply Japanese customers with uranium fuel assemblies for pressurized water reactors (PWR), boiling water reactors (BWR) and high-temperature gas-cooled reactors, as well as uranium-plutonium mixed oxide (MOX) fuel assemblies. It will also provide related services, including reconversion.
The company is also slated to newly enter into overseas markets as a supplier of MHI-designed fuel assemblies for PWRs. MHI and Areva have also confirmed their intent to jointly invest in a dedicated nuclear fuel fabrication facility to be built in the US.
