Flowserve Corp
of the US 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 in Beijing.
The agreement formalizes a memorandum of understanding (MoU) 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 percent owned by
SUFA and 49 percent by Flowserve. The joint venture will involve an
investment of some $25 million. Both companies will supply nuclear power
industry valve technology and jointly construct a manufacturing facility
as a part of the agreement.
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."