21st Oct - Toshiba's Westinghouse To Buy Out Nuclear Fuel Unit

Toshiba Corp. subsidiary Westinghouse Electric Co. decided Wednesday to acquire all of Tokyo-based Nuclear Fuel Industries Ltd. in 2012.

The buyout comes amid a surge in planned nuclear power plant construction worldwide.

Westinghouse owns 52% of the uranium processing company and will acquire the remainder from Furukawa Electric Co. and Sumitomo Electric Industries Ltd, which each hold 24% stakes.

The three shareholders have yet to discuss pricing and other aspects of the deal. Westinghouse paid around 10 billion yen last year for its majority interest in the unit.

Westinghouse operates nuclear-fuel processing facilities in the U.S. and Sweden. It plans to make Nuclear Fuel Industries its Asian base for fuel production and move ahead with joint procurement of parts and materials. The two firms will also strengthen cooperation on maintenance and other services for nuclear power plants.

Nuclear Fuel Industries turns powdered uranium into fuel rods for Japanese power plants. Annual sales total about 20 billion yen. It is the only processor in Japan that makes fuel for both pressurized-water reactors and boiling-water reactors.