Sandvik CEO Sees Risk of Delays To Nuclear Projects In China
19 July 2011 - 11:36PM
Dow Jones News
Sandvik AB's (SAND.SK) Chief Executive Olof Faxander Tuesday
warned that uncertainty surrounding the nuclear industry in China
may cause temporary overcapacity for its steam-generating tube
business.
China said in March it would freeze approvals for new nuclear
reactors, awaiting an examination of safety procedures in the wake
of the nuclear crisis at Fukushima in Japan.
The move will impact Sandvik, which makes steam generator tubes,
used in the heat exchangers that nuclear plants use to convert
water into steam from reactor core heat.
"China is our largest market for steam generator tubes,"
Faxander told investors and analysts at a press conference that
followed the company's second-quarter earnings report.
"There is a risk that some of our projects in China will be
delayed, which could create temporary overcapacity in our
facilities," he added.
Faxander noted Sandvik's nuclear orders are "firm", and said he
doesn't foresee any project cancellations at this point.
"There still is a large need for energy around the world," he
said.
At 1248 GMT shares in Sandvik were trading 3.4% higher at
SEK105.50.
-By Sven Grundberg, Dow Jones Newswires; +46-8-5451-3098;
sven.grundberg@dowjones.com
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