Press releases

December 22, 2008

MHI, AREVA, MMC and MC Jointly Establish A Full-fledged Nuclear Fuel Fabrication Business in Japan

Tokyo, December 22, 2008 - Mitsubishi Heavy Industries, Ltd. (MHI), AREVA, Mitsubishi Materials Corporation (MMC) and Mitsubishi Corporation (MC) have signed a four-party agreement towards the establishment of a joint company ("New Company") in the nuclear fuel fabrication business. The New Company will be a full-fledged nuclear fuel supplier, integrating development, design, manufacturing and sales of nuclear fuel.

The New Company, which will benefit from the technology and established experience of each of the partners, is aimed at strengthening its nuclear fuel business in response to the increasing importance of nuclear power generation globally amid expanding efforts to prevent global warming.

The agreement outlines the business scope, the organization principles and the detailed process toward the establishment of the New Company. The four partners are now entering into more detailed discussions with the target of having the New Company established during the first half of 2009.

The New Company will be established by restructuring the existing Mitsubishi Nuclear Fuel Co., Ltd. (MNF), which is located in Tokai-mura, Ibaraki Prefecture¹. MHI, MMC and AREVA will transfer their related business to the “new” MNF, and MC will subscribe for new shares to be issued. Under this scheme, MNF is slated to evolve into a full-fledged, comprehensive nuclear fuel company. The ownership ratios of the four partners in the New Company will be MHI 35%, MMC 30%, AREVA 30% and MC 5%. The New Company will have around 550 employees and expects 50 billion yen (400 Million Euros) in sales by 2020.

The New Company will supply Japanese customers with uranium fuel assemblies for pressurized water reactors (PWR), boiling water reactors (BWR) and high-temperature gas-cooled reactors, as well as uranium-plutonium mixed oxide (MOX) fuel assemblies. It will also provide related services, including reconversion. The company is also slated to newly enter into overseas markets as a supplier of MHI-designed fuel assemblies for PWRs.

MHI and AREVA also confirmed their intent to jointly invest in a dedicated nuclear fuel fabrication facility to be built in the U.S.

1 MNF's equity is currently owned by MMC (66%) and MHI (34%)

Contacts

AREVA press office:
Fleur Floquet-Daubigeon / Julien Duperray / Pauline Briand
Tel: +33 1 34 96 12 15 - Fax: +33 1 34 96 16 54
press@areva.com

For Mitsubishi Heavy Industries, Ltd:
Hideo Ikuno: h.ikuno@daiya-pr.co.jp
Tel: +813-6716-5277,
Fax: +813-6716-5929
Daiya PR (in charge of public relations for Mitsubishi Heavy Industries, Ltd.)