GE Hitachi Seeks License Extension - Analyst Blog

GE Hitachi Nuclear Energy has applied to the U.S. Nuclear Regulatory Commission to renew certification of its Advanced Boiling Water Reactor (ABWR) technology design. It enables predictability of costs for building new nuclear power plants.

The company, a collaboration between General Electric Company (GE) and Hitachi Ltd (HIT), is attempting to extend the tenure of the certification for 15 years beyond June 2012, when the previous certification expires. The reason is that it needs to incorporate a design update to accomodate the current NRC requirement for an aircraft impact assessment.

The 1,350 megawatt ABWR remains the only Generation III model in the world with proven construction, licensing and operating experience.

GE has one of the best infrastructure franchises worldwide with solid organic growth rates, exposure to favorable secular trends and a large installed base supporting a growing annuity-like service business. 

Infrastructure businesses from GE are helping build the energy, health, transportation and technology infrastructure of the new century. These businesses provide the products and services that help developing regions participate in the global economy, while also helping developed regions upgrade with cleaner, more efficient and better technologies.

Financial business at GE offers an array of products and services aimed at enabling commercial businesses, consumers and markets worldwide to build a stronger and financially secure future.

GE has adopted strategic imperatives to strengthen its portfolio by building strong growth platforms and generating cash from low-return businesses.  Its focus remains on accelerating organic growth and achieving technical and service excellence, while building enduring customer relationships around the world. 

GE has products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and industrial products. Since its incorporation in 1892, the company has developed or acquired new technologies and services that have broadened considerably the scope of its activities. Philips (PHG) and Siemens AG (SI) are major competitors.

We currently have a Neutral recommendation on General Electric Company.

 
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