US-Chinese joint venture to produce valves
16 March 2009
Flowserve Corp of the USA has signed a joint venture agreement with China's SUFA Technology Industry Co Ltd to produce safety-related valves for the Chinese nuclear power industry.
The agreement, signed in Beijing, formalizes the memorandum of understanding covering the product line signed between Flowserve and SUFA - a subsidiary of China National Nuclear Corp (CNNC) and the largest valve manufacturer in China - in November 2007.
The joint venture - Flowserve-SUFA Nuclear Power Equipment Co Ltd - will be based in Suzhou, Jiangsu province, and will be 51% owned by SUFA and 49% by Flowserve. The joint venture will involve an investment of some $25 million. As part of the agreement, both companies will supply nuclear power industry valve technology and jointly construct a manufacturing facility.
The joint venture will manufacture safety-related valves, including main steam isolation valves (MSIVs), exclusively for China's nuclear power industry. MSIVs are used to assist in the safe shutdown of a reactor in the unlikely event of a rupture in the plant's steam piping.
Jiangang Qiu, vice president of CNNC and chairman of SUFA, said: "We are pleased to sign this joint venture agreement with Flowserve. The joint venture will produce specialized valves for the civilian Chinese nuclear power market and bring together the comprehensive strength of both companies to this market."
Lewis Kling, president and CEO of Flowserve, said, "China represents an important market for Flowserve and one that we've served for a number of years." He added, "This joint venture will strengthen our competitiveness and leverage our advanced research and development capabilities."