Information contained in this news release is current as of the date of the press announcement, but may be subject to change without prior notice.
March 30, 2012
Tokyo, February 15, 2012 --- Hitachi, Ltd. (NYSE:HIT / TSE:6501) today announced that the Company has agreed to the Concession Agreement with the Lithuanian Energy Ministry regarding construction of the Visaginas nuclear power plant planned for Lithuania. The Concession Agreement will be officially concluded after the approval by the Lithuanian parliament which has been in session since March 2012.
Lithuania is planning to construct a new nuclear power plant in Visaginas in the northeastern part of the country, with the aim of having an operational plant in 2021. In 2008, the project company Visagino Atominė Elektrinė (VAE) was established to further the development of the project and conduct negotiations relating to investment into the Visaginas Nuclear Power Plant. In 2009, the Lithuanian parliament passed a bill permitting the construction of a nuclear power plant in Visaginas.
Hitachi and Hitachi-GE Nuclear Energy, Ltd. (Hitachi-GE) proposed to provide an Advanced Boiling Water Reactor (ABWR) – the only generation III nuclear reactor with a proven operational track record around the world – to the Lithuanian government. Hitachi was selected as the strategic investor in July 2011, and in December 2011 initially signed the term sheet for the Concession Agreement.
Today, Hitachi signed the Concession Agreement with the Lithuanian Energy Ministry, and will carry out procedures to get approval from the Lithuanian government. Following the approval of this agreement by the Lithuanian parliament, the concession for power plant construction will be granted to a Project Company to be established by investment from Hitachi, VAE and regional partners. The Project Company will conduct negotiations regarding EPC (engineering, procurement, and construction) and so forth. The project company will aim to conclude contracts by around summer of 2012.
The proposed ABWR has an enhanced level of safety, drawing on experiences from the Great East Japan Earthquake. It has an alternative power supply and incorporates countermeasures to restore cooling functions as necessary. In executing this project,
Hitachi will team up with U.S.-headquartered GE, Hitachi's partner in the nuclear power business, and GE-Hitachi Nuclear Energy. In addition, Hitachi and Hitachi-GE will also collaborate with local companies and contribute to the creation of jobs in local industries in both the construction and operation of the plant.
Hitachi is promoting global business development centered on its expertise in the Social Innovation Business, which combines providing leading social infrastructure solutions underpinned by highly reliable and highly efficient information and telecommunications technology. In this context, Hitachi is actively pursuing opportunities in Central and Eastern Europe, including Lithuania, as a key region in its overseas business development plan on the Social Innovation Business.
Hitachi-GE, a joint venture established by Hitachi and GE in July 2007, as the world's top-class comprehensive plant manufacturer, engages in the development, planning, design, manufacture, inspection, installation, pre-operation, and maintenance of nuclear reactor–related equipment and is able to execute integrated project management for controlling these operations. Hitachi GE has been involved in 23 reactors in Japan to date, including those currently under construction. Among them, it has participated in all of Japan's ABWR projects—four ABWRs are already operational and three are under construction. Overseas, it supplied major nuclear reactor equipment for the Lungmen Nuclear Power Plant in Taiwan.
Hitachi and GE established joint venture companies in 2007 to construct, maintain, and provide related services for nuclear power plants in Japan and the United States, and are proactively pursuing international business activities. The Japanese joint venture, Hitachi-GE Nuclear Energy, Ltd., is roughly 80% owned by Hitachi and 20% owned by GE, and in the United States, GE-Hitachi Nuclear Energy is 40% owned by Hitachi and 60% owned by GE. Both companies are utilizing their accumulated know-how and experience to further expand their nuclear power businesses in global markets.
Hitachi, Ltd., (NYSE: HIT / TSE: 6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 360,000 employees worldwide. Fiscal 2010 (ended March 31, 2011) consolidated revenues totaled 9,315 billion yen ($112.2 billion). Hitachi will focus more than ever on the Social Innovation Business, which includes information and telecommunication systems, power systems, environmental, industrial and transportation systems, and social and urban systems, as well as the sophisticated materials and key devices that support them. For more information on Hitachi, please visit the company's website at http://www.hitachi.com.
