Joint Venture Company for Manufacturing Zirconium Cladding Tube* for Nuclear Generation Plants Receives Equity Participation by CEZUS (France)

Zirco Products Co., Ltd (Zirco), a jointly owned company of Sumitomo Metal Industries, Ltd. (Sumitomo Metals) and Kobe Special Tube Co., Ltd. (Kobe Special Tube) that manufactures zirconium cladding tube, has agreed with CEZUS (France), the world's largest maker of mother tube for the zirconium cladding tube, on its equity participation in Zirco. Zirco aims to establish a steady supply system of zirconium cladding tube to build a strong business base and accelerate its growth strategy.

Details are as follows.

1. Background and Impact
Zirco is Japan's largest manufacturer of zirconium cladding tube for nuclear reactors, whereas CEZUS is the world's largest maker of mother tube for the zirconium cladding tube. Demand for nuclear power generation is increasing worldwide from the viewpoint of preventing global warming. Zirco finds that ensuring stable supply of the mother tube is one of the significant challenges that management faces. The equity participation by CEZUS in this agreement will enable Zirco to receive the stable supply of the tube, thereby solidifying its position.

CEZUS belongs to the fuel sector of AREVA, the world's largest group in the nuclear power development business.

* Zirconium cladding tube
Zirconium cladding tube is made of zirconium alloy (zircaloy). It is used in the reactor core of nuclear power plants. Enriched uranium in pellet form is stacked inside the tube to form a fuel rod. Fuel rods are grouped and called fuel assemblies: fuel of the nuclear power reactor.

from left
Mr. Hiroaki Tarui (President, Zirco)
Mr. Yasuo Imai (Director and Executive Vice President, Sumitomo Metals)
Dr. Guillaume Mehlman (President and CEO, CEZUS)
Mr. Terumichi Abe (President, Kobe Special Tube)
Mr. Toshiaki Hironaka (Managing Director, CEZUS JAPAN)

 

Zirconium Cladding Tube