Key supplier expects Chinese nuclear construction to double

Japan Steel Works Ltd., a key atomic reactor parts supplier, is predicting China’s nuclear plant construction will be twice as much as it previously expected, according to this Bloomberg report.

The country may build about 22 reactors in the five years ending 2010 and 132 units thereafter, compared with a company estimate last year for a total 60 reactors, President Ikuo Sato said in an interview. Japan Steel Works has the only plant that makes the central part of a large-size nuclear reactor’s containment vessel in a single piece, reducing radiation risk.
 
China, the world’s largest energy consumer after the U.S., is increasing spending on atomic energy as part of a 4 trillion yuan ($586 billion) economic stimulus and as it curbs greenhouse gas emissions. Japan Steel Works is counting on the rising reactor demand as the global recession curbs sales to customers such as carmakers and electronics companies.

The potential for investment in nuclear power is huge,” said Shi Yan, an analyst at UOB-Kay Hian Ltd. in Shanghai. “Only a small number of companies in China have the right to develop nuclear power projects, but the country is open to foreign companies to help build reactors and to provide equipment.”

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