Zirco Products Co. Ltd, a jointly owned company of Sumitomo Metal Industries Ltd and Kobe Special Tube Co. Ltd that manufactures zirconium cladding tube, has agreed with France-based CEZUS, a manufacturer of mother tube for the zirconium cladding tube, on its equity participation in Zirco. Zirco aims to establish a steady supply system of zirconium cladding tube to build a strong business base and accelerate its growth strategy. Zirco is a Japan-based manufacturer of zirconium cladding tube for nuclear reactors. Demand for nuclear power generation is increasing worldwide from the viewpoint of preventing global warming. Zirco finds that ensuring stable supply of the mother tube is one of the significant challenges that management faces. The equity participation by CEZUS in this agreement will enable Zirco to receive the stable supply of the tube, thereby solidifying its position. Zirconium cladding tube is made of zirconium alloy (zircaloy). It is used in the reactor core of nuclear power plants. Enriched uranium in pellet form is stacked inside the tube to form a fuel rod. Fuel rods are grouped and called fuel assemblies: fuel of the nuclear power reactor.