nuclear-news

Lithuanium referendum result is a blow to global nuclear industry

As these companies have no prospect of building a new nuclear plant in Japan since the government reviewed the nuclear energy policy after the Fukushima crisis, they must try to expand their businesses overseas

Hitachi’s nuclear plan hits bump / Lithuania referendum on construction project could hurt export strategy The Yomiuri Shimbun, 17 Oct 12 A Lithuanian referendum result has cast a shadow over Hitachi Ltd.’s strategy to increase sales from its nuclear business–and could affect other Japanese companies in the nuclear industry.

Hitachi has signed a provisional contract with the Lithuanian
government to construct a nuclear plant in the Baltic nation. But in a
nonbinding referendum held Sunday, 62 percent of Lithuanian voters
rejected the project, a result that could make the Lithuanian
government review it.

A Hitachi spokesman said the result of the referendum was “regrettable.”
“We’ll closely watch how the Lithuanian government responds to the
result,” the spokesman added.

Hitachi signed a provisional contract with the Lithuanian government
in July 2011 to construct the latest model of a boiling water reactor
in Visaginas, eastern Lithuania. The project will cost 400 billion yen
to 500 billion yen, and the Lithuanian government plans to use the
reactor to supply electricity to all three Baltic countries, including
Estonia and Latvia, from the early 2020s.

The Lithuania deal was the first inked by a Japanese company to build
a nuclear reactor overseas since the crisis began at the Fukushima No.
1 nuclear power plant in March 2011. The contract showed the safety of
Japan’s nuclear technology was recognized internationally, to a
certain degree.

Hitachi plans to increase sales of its nuclear businesses from 160
billion yen in March to 360 billion yen in March 2021. However,
observers said the company will have to revise its strategy if
Lithuania does a U-turn on its nuclear policy.

Other Japanese nuclear power plant companies are concerned the result
in Lithuania might affect sentiment in more nations considering
building nuclear reactors.

Toshiba Corp. is competing for an order to build a nuclear plant in
Turkey with South Korea, Canada and other countries. Mitsubishi Heavy
Industries Ltd. is trying to export a nuclear power reactor to Jordan.

As these companies have no prospect of building a new nuclear plant in Japan since the government reviewed the nuclear energy policy after the Fukushima crisis, they must try to expand their businesses overseas….. http://www.yomiuri.co.jp/dy/business/T121016003438.htm

October 17, 2012 - Posted by Christina Macpherson | EUROPE, politics