Mitsubishi Heavy to Win US Nuclear Reactor Order: Report

Japan's Mitsubishi Heavy Industries will win an order to build two nuclear reactors in Texas, becoming the first Japanese firm to export reactors on its own to the growing US market, a report said Wednesday.

In a deal valued at an estimated 600 billion yen (5.17 billion dollars), US operator TXU has tapped Mitsubishi Heavy to expand its nuclear power plant operations in the suburbs of Dallas, the Nikkei business paper said.

Mitsubishi Heavy will build two reactors for TXU, which plans to construct five reactors by 2020, the newspaper said, quoting unnamed sources. Confirmation was not immediately available.

The world market for nuclear power plants is expected to expand rapidly amid higher crude oil prices and calls for a reduction in greenhouse gas emissions.

At least 150 reactors are expected to be built in the next 25 years, especially in India and China, the Nikkei estimated.

With an eye to the growing US market, Japanese giant Toshiba Corp. last year bought US nuclear power plant maker Westinghouse for 5.4 billion dollars in one of Japan's largest overseas acquisitions in years.

Toshiba's rival Hitachi Ltd. has also teamed up with General Electric Co. to build nuclear power plants in the United States.

Mitsubishi Heavy initially developed the advanced reactors for the Japanese market, but modified them to meet US safety standards, the Nikkei said.

Source AFP

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