Areva, Mitsubishi announce nuclear fuel tie-up

Japan's Mitsubishi Heavy Industries and France's Areva today announced a capital tie-up in nuclear fuel production, predicting that the market for atomic energy will keep growing.

The major French nuclear energy company will buy a 30 per cent stake in Mitsubishi Nuclear Fuel Co, in which Mitsubishi Heavy will be the top shareholder with 35 per cent stake, they said, confirming a Sunday press report.

The tie-up will allow the nuclear reactor builders to expand fuel generation "amid the growing importance of nuclear power generation in the world against the backdrop of efforts to tackle global warming", a joint statement said.

The new company will have some 550 employees and aims to earn $602 million in sales in 2020, it said.

Two other Mitsubishi group firms will also partic ipate.

Metal smelter Mitsubishi Materials Corp and trading house Mitsubishi Corp will hold a 30 per cent stake and a five per cent stake, respectively.

Nuclear power has been increasingly in favour both in wealthy and developing nations due to concerns over the environmental damage, costs and political effects of dependence on Middle East.