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13 November 2006 -- Japanese electronics manufacturer Hitachi Ltd. and U.S.-based GE Co. today announced their intention to create a global alliance for their nuclear businesses to improve and expand their boiling water reactor (BWR) technology offerings.
Plans call for Hitachi and GE to combine their nuclear power divisions through a cross-shareholding arrangement between their two businesses. The new Japanese company will be owned approximately 80 percent by Hitachi and approximately 20 percent by GE. The new U.S. company will be owned 40 percent by Hitachi and 60 percent by GE.
Andy White, president and CEO of GE Energy's nuclear business, said at a press conference for the annoucement that the main goals for the joint venture will be first to expand the use of its advanced boiling water reactor (ABWR) in global markets and second, to develop its economic and simplified boiling water reactor (ESBWR) business to bring the new technology to the market. The cooperation between the companies will not affect the certification process that the ESBWR is currently undergoing at the U.S. Nuclear Regulatory Commission. GE submitted an application for final design approval and standard design certification for the ESBWR on August 24, 2005.
White said "money could change hands" over the joint venture, but the financial details have not yet been finalized. The nuclear fuel business will not be covered by the integration.
This announcement follows other recent nuclear joint ventures around the world. Japan's Toshiba Corp. recently completed its $4.2 billion acquisition of Westinghouse, the U.S. power plant division of British Nuclear. French nuclear reactor supplier Areva and Japan's Mitsubishi Heavy Industries Ltd. also announced their plans to work together in the growing global nuclear energy market.
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