Sumitomo Metal Industries Ltd has decided to expand the production capacity at its Steel Tube Works in Amagasaki, Hyogo Prefecture for steam generator tubes (SG tubes) to be used in pressurized-water reactor nuclear power plants. By this investment, Sumitomo Metals will increase the production capacity of SG tubes by approximately 2.7 times the actual production in fiscal 2008. The investment amount is JPY 14 billion, and increased production is scheduled to start in April 2013. On the back of this investment, triggered by worldwide growth in electric power demand and the need to reduce carbon dioxide emissions, there has been a surge in the construction of nuclear power plants. In this environment, demand for SG tubes is expected to exceed the production capacity of the only three suppliers in the world, namely, Sumitomo Metals, Sandvik AB (Sweden), and Valinox Nucléaire (France).
