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12:04 PM, January 5, 2018
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Mitsubishi, French EDF Pact to Market Nuclear Power Plants Worldwide (Representation pic)

Japan's Mitsubishi Heavy Industries, Ltd. (MHI) has acquired a 19.5% equity stake in Framatome, a French company that designs and manufactures nuclear power plant (NPP) equipment and systems and renamed from New NP.

The investment is aimed at establishing a global structure for delivering the latest technologies for safe and reliable nuclear power generation through strategic collaboration between MHI, Framatome and Electricité de France (EDF), the company said in a press release Friday. It will also support the promotion of sales of the ATMEA1 reactor through collaboration with EDF.

Framatome will specialize in after-sale servicing of existing plants as well as fuel supply, and the design, manufacture and sale of reactor equipment for new plants; an area expected to generate stable earnings.

Following completion of the investment, MHI President and CEO Shunichi Miyanaga commented, "MHI has been a key player in cooperation between Japan and France in the development of nuclear power generation technologies for many years. With the completion of our investment into Framatome, a new structure has been created that will further strengthen the ties between our nuclear energy industries, and I am confident this new relationship will enable further improvement in technologies to ensure the long-term sustainability and reliability of nuclear energy." Under the new arrangement, MHI, EDF and Framatome will collaborate in promoting worldwide sales of the ATMEA1 reactor, including equipment supply to NPPs, after-sale servicing, and decommissioning work.

MHI is also scheduled to acquire a 5 percent equity stake in New AREVA Holding (formerly referred to as "NewCo"), a company primarily focused on the fuel cycle field business.

The investment is due to be completed by the end of January 2018.

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