OREANDA-NEWS. July 15, 2011. Hitachi, Ltd. (NYSE: HIT / TSE: 6501) today announced that it has been selected as the Strategic Investor*1 for the Visaginas Nuclear Power Plant Project planned by the Republic of Lithuania. As a result, Hitachi has secured the exclusive rights to finalise the terms for the project.

Lithuania is planning to construct a new nuclear power plant in Visaginas in the northeastern part of the country, with the aim of having an operational plant in 2020. In 2008, the project company Visagino Atomine Elektrine (VAE) was established to further the development of the project and conduct negotiations relating to investment into the Visaginas Nuclear Power Plant. In 2009, the Lithuanian parliament passed a bill permitting the construction of a nuclear power plant in Visaginas.

Hitachi and Hitachi-GE Nuclear Energy, Ltd. (Hitachi-GE) proposed as part of the Strategic Investor role to provide investment into the Visaginas Nuclear Power Plant as well as to provide an Advanced Boiling Water Reactor (ABWR) - the only generation III nuclear reactor with a proven operational track record around the world - to the Lithuanian government. The proposed ABWR has an enhanced level of safety, drawing on experiences from the Great East Japan Earthquake. For instance, it has an alternative power supply and incorporates countermeasures to restore cooling functions as necessary.

In executing this project, Hitachi will team up with U.S.-headquartered GE, Hitachi's partner in the nuclear power business, and GE-Hitachi Nuclear Energy. In addition, Hitachi and Hitachi-GE will also collaborate with local companies and contribute to creation of jobs in local industries in both the construction and operation of the plant.

In conjunction with GE, Hitachi will provide the latest technologies with enhanced safety profiles to help ensure a stable electricity supply in Lithuania and to regional partners*2 as well as contribute to their economic development.
*1
Strategic Investor : An experienced company in the nuclear power industry selected to have preferential negotiating rights for investment on the project, concession agreement and other contracts including EPC contract.
*2
Regional partners : The national utilities of the Republic of Estonia, the Republic of Latvia and the Republic of Poland, that are cooperating on the Visaginas New Nuclear Power Plant Project.