Sandvik concludes additional agreement for delivery of steam generator tubes and expands production capacity
Sandvik Materials Technology has concluded an additional multi-year supply agreement for steam generator tubes for the nuclear power industry.
The agreement is valued at SEK 1.5 billion and deliveries are scheduled to commence in 2012 and continue through 2014.
The customer is the Chinese company Harbin Electric Corporation (QHD) Heavy Equipment Company Ltd and the steam generator tubes will be used in nuclear power plants in China.
As a consequence of this agreement and the very high demand from the nuclear power industry, Sandvik's Board has approved a further expansion of production capacity for steam generator tubes. This will take place at Sandvik Materials Technology's plants in Sweden and the Czech Republic.
"The investment further strengthens Sandvik's position as a leading supplier of steam generator tubes for the rapidly growing nuclear power industry. Including the order from Harbin Electric, we have signed supply agreements for a total value of SEK 8 billion in this area since the beginning of 2009," says Peter Gossas, President of Sandvik Materials Technology.
Sandviken, 3 February 2010
Sandvik Aktiebolag (publ)