Swedish steel and technology group Sandvik AB's subsidiary Sandvik Materials Technology has concluded a SEK 3 billion ($465 million) multi-year supply agreement with US-based diversified technological company Westinghouse for the delivery of cladding tubes in zirconium. Deliveries will take place over a number of years commencing in the first quarter of 2011.
The Swedish company said that Westinghouse and Sandvik have worked closely for many years, adding that the cladding tubes will be used in nuclear power plants worldwide.
As a result of the agreement, Sandvik's board of directors has approved a significant expansion of production capacity for cladding tubes at Sandvik Materials Technology's facility in Sandviken, Sweden.
"Sandvik offers a broad product program to the rapidly growing nuclear power industry. This delivery agreement for cladding tubes further strengthens our position as a supplier of advanced materials to this demanding market," said Peter Gossas, president of the Sandvik Materials Technology, regarding the issue.