Friday, September 11, 2009

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.

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