First half of GE, Hitachi alliance begins operations

The first half of General Electric and Hitachi's plans to form an alliance of their nuclear businesses has come to fruition with the launch of GE-Hitachi Nuclear Energy, which will operate throughout the world outside Japan.

GE-Hitachi Nuclear Energy, part of the venture, officially began business on 4 June. Led by GE's current nuclear business executives, it is 60% owned by GE and 40% owned by Hitachi.

The second half of the alliance, covering operations in Japan, is due to begin operations in early July under the name Hitachi-GE Nuclear Energy and will be 80.1% owned by Hitachi and with GE holding 19.9%. It will be led by Hitachi's current nuclear executives.

The companies have a long history of collaboration in developing reactor projects. Hitachi took out a licensing agreement on GE's boiling water reactor (BWR) designs in 1967, and the companies have worked together in developing advanced boiling water reactor (ABWR) designs in Asia. The new alliance "complements and optimizes GE's and Hitachi's respective strengths," according to GE Energy president John Krenicki. The combined nuclear businesses aim to become the world's foremost provider of ABWR plants and related services, but will also offer key equipment and services for pressurized water reactors (PWRs).

According to GE-Hitachi Nuclear Energy's president and CEO, Andy White, the new business model should enable the companies to capitalize on business synergies and add value for customers. "While GE and Hitachi have collaborated for decades in developing advanced BWR projects, there are relatively few overlapping areas in our respective nuclear businesses", he said.

GE and Hitachi are owners, along with Toshiba, of Global Nuclear Fuel (GNF), a nuclear fuel design and manufacturing joint venture. GNF is not part of the newly created alliance.

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