Hitachi Announces the Acquisition of Horizon Nuclear Power
London, UK, October 30, 2012
- Hitachi, Ltd. (TSE:6501, "Hitachi") today announced the acquisition of Horizon Nuclear Power (Horizon) from RWE and E.ON. The transaction is expected to complete at the end of November, and upon completion, Hitachi will start leading a programme of building new nuclear power plants in the United Kingdom.
In addition, Hitachi also announces that two leading British companies, Babcock International and Rolls Royce have signed MOUs to join Hitachi to plan and deliver the programme. Hitachi will cooperate with other nuclear energy related companies around the world.
Hiroaki Nakanishi, Representative Executive Officer and President of Hitachi, Ltd. said: "I am extremely pleased that we have been successful in acquiring Horizon Nuclear Power. Today starts our 100 year commitment to the UK and its vision to achieve a long-term, secure, low-carbon, and affordable energy supply. We look forward to sharing Hitachi’s corporate vision and nuclear business policy with the management and employees of Horizon, and working harmoniously with UK companies and stakeholders for the delivery of this vital part of Britain’s national infrastructure and the creation of a strong UK nuclear power company."
Following completion of the transaction, Hitachi will immediately work towards achieving licence acceptance under the Generic Design Assessment process as governed by the Office for Nuclear Regulation and begin working with our UK partners on the future programme.
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The Hitachi Horizon programme involves building two to three c1,300 MW plants at each of Horizon’s sites at Wylfa, Anglesey, and Oldbury, Gloucestershire, with the first unit becoming operational in the first half of 2020s. Hitachi endorses the UK government’s policy for promoting low-carbon society and will employ its Advanced Boiling Water Reactor (ABWR) technology, which has already been licensed in other countries and is the only advanced nuclear technology (Generation III.PLUS) in operation in the world. Currently, there are four ABWRs in operation In Japan, built to time and budget.
Hitachi anticipates the creation of between 5,000 and 6,000 direct jobs at each site during the construction phase and a further 1,000 permanent jobs per site upon start of the operation of each site.
Preliminary estimates based on past build experience, indicate approximately 60% by value of the first unit will be spent on locally sourced materials, personnel and services, with this rising for future units. Hitachi will invest in transferring its modular construction technology which underpins the build timetable establishing a module assembly facility in the UK.
Hitachi will make a significant investment in training engineers, construction teams and operating staff for the plants, and will work with its partners and with local colleges and universities to develop training programmes, which will create a strong and permanent base of nuclear skills in the UK that also have a global demand.
In partnership with the UK government, the devolved administration in Wales and local authorities in the Wylfa and Oldbury areas Hitachi will work towards ensuring that economic benefits flow to the local communities in which the plants will be located.
About Hitachi, Ltd.
Hitachi, Ltd., (TSE: 6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 320,000 employees worldwide. Fiscal 2011 (ended March 31, 2012) consolidated revenues totalled 9,665 billion yen ($117.8 billion). Hitachi is focusing 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