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Sumitomo Metals to Increase Production Capacity for Steam Generator Tubes
04/09/2010 - Sumitomo Metal Industries has decided to expand the production capacity at its Steel Tube Works in Amagasaki, Hyogo Prefecture for steam generator tubes to be used in pressurized-water reactor nuclear power plants. Increased production is scheduled to start in April 2013.
Sumitomo Metal Industries, Ltd. has decided to expand the production capacity at its Steel Tube Works in Amagasaki, Hyogo Prefecture for steam generator (SG) tubes to be used in pressurized-water reactor (PWR) nuclear power plants. The tubes are made of high-priced materials with a nickel content of 60% and a chrome content of 30%.
The company says this expansion will increase the production capacity of SG tubes by about 2.7 times the actual production in fiscal 2008. The investment amount is approximately 14 billion yen. Increased production is scheduled to start in April 2013.
The major areas of capacity expansion are the cold working facility, finishing facility, and inspection facility.
Sumitomo Metals notes that there has been a surge in the construction of nuclear power plants, due to worldwide growth in electric power demand and the need to reduce carbon dioxide emissions. Demand for SG tubes is expected to exceed the production capacity of the only three suppliers in the world: Sumitomo Metals, Sandvik AB (Sweden), and Valinox Nucléaire (France).
The bulk of Sumitomo Metals’ orders for SG tubes are to be used in advanced nuclear power plants categorized as the third generation. It has also received orders for Vogtle, the nuclear power plant in Burke, Georgia, U.S., for the additional construction of two units. This is the first nuclear project to use federal loan guarantees that U.S. President Obama announced this February, the company notes.
Sumitomo Metals notes that there has been a surge in the construction of nuclear power plants, due to worldwide growth in electric power demand and the need to reduce carbon dioxide emissions. Demand for SG tubes is expected to exceed the production capacity of the only three suppliers in the world: Sumitomo Metals, Sandvik AB (Sweden), and Valinox Nucléaire (France).
The bulk of Sumitomo Metals’ orders for SG tubes are to be used in advanced nuclear power plants categorized as the third generation. It has also received orders for Vogtle, the nuclear power plant in Burke, Georgia, U.S., for the additional construction of two units. This is the first nuclear project to use federal loan guarantees that U.S. President Obama announced this February, the company notes.
Sumitomo Metals expects to continue receiving orders from the U.S., China, South Korea, and other countries for SG tubes to be manufactured in and after 2013.
