nuclear-news

Uranium enrichment company URENCO for sale – uneconomic

Powerhouse of the Uranium Enrichment Industry Seeks an Exit NYT, BY STANLEY REED , 26 May 13“..….Urenco was formed by treaty in 1971 when Britain, West Germany and the Netherlands decided for
strategic and business reasons to combine their uranium enrichment programs. The company is still owned by the British and Dutch governments, with one-third each, and with the German third held jointly by two big utility companies, E.On and RWE.

Urenco now has four enrichment plants — in Britain, the Netherlands
and Germany — selling fuel for civilian energy purposes around the
world, capturing nearly a third of the global market………the
company is at a crossroads. Growth may flatten in the next couple of
years, executives say, mainly because Japan — a major user of nuclear
power until the 2011 Fukushima Daiichi disaster — has shut down its
reactors, taking about 10 percent of the world’s nuclear energy
generating capacity offline. And the Japanese have stockpiled
substantial amounts of fuel for the day, if ever, that those reactors
go back into operation……
“Nuclear strategies have changed,” said Michael Kruse, a consultant on
nuclear issues for the management consultant Arthur D. Little in
Frankfurt. “Governments no longer think they need to be in this
business,” he said, “and utilities in several countries want out after
Fukushima.”

People in the industry say the most likely buyers would be companies
already in the industry that might want to offer clients fuel along
with nuclear power stations. Areva, a French giant, might fit that
bill. So might Toshiba of Japan, which is studying building nuclear
plants in Britain. Still, “there are in my view not many companies
that can buy Urenco,” Mr. Kruse said.

May 29, 2013 - Posted by Christina Macpherson | business and costs, EUROPE, Uranium