5 Jun (NucNet): General Electric (GE) and Hitachi have completed the first half of their agreement to form a “global alliance” of their nuclear businesses, creating a nuclear power plant and services operation that will compete for new reactor projects around the world.
The two companies today started their nuclear-plant construction alliance in all regions outside Japan with the name GE-Hitachi Nuclear Energy. It is 60 percent owned by GE and 40 percent by Hitachi, and will be led by the executives of GE’s current nuclear business.
The second half of the agreement is to start a company in Japan in early July 2007 called Hitachi-GE Nuclear Energy. It will be owned 80.01 percent by Hitachi and 19.99 percent by GE and will be led by the executives of Hitachi’s current nuclear business.
GE and Hitachi said they are combining their nuclear businesses to become the world’s foremost provider of advanced boiling water reactor plants and related services. The newly allied businesses will also offer equipment and services for pressurised water reactors.
The two companies have collaborated for decades in developing reactor projects. Since the 1980s, GE and Hitachi have worked together in developing advanced boiling water reactors in Asia.
The companies announced in November 2006 that they intended to form the alliance, saying they wanted to take advantage of growth in the nuclear energy industry.
