Mitsubishi Heavy Industries Ltd. is nearing completion of the design for its next-generation nuclear reactor, signaling the start of construction as Japan increases its focus on atomic power. President Seiji Izumisawa stated that once a site is chosen in Japan and final tests are conducted, construction can commence. The process is expected to take approximately 10 years before operations can begin. Izumisawa hopes that a site selection will be made soon so that valuable knowledge and experience in reactor construction can be passed on to future engineers.
The Japanese manufacturer is currently working on the development of the SRZ-1200, an advanced light water reactor. This project is being carried out in collaboration with major Japanese utilities, including Kansai Electric Power Co. However, Izumisawa did not provide any specific details regarding the potential sites for the construction of the reactor.
Globally, there is a growing interest in nuclear power as countries seek to achieve emission-free electricity generation and enhance energy security. In Japan, the issue of atomic plants remains politically sensitive following the Fukushima disaster in 2011. Nevertheless, Prime Minister Fumio Kishida’s government has expressed its commitment to utilizing renewables and nuclear power to the fullest extent in its “green transformation” plan, which was introduced last year.
Last month, Japan initiated a review process for its national energy strategy. The outcome of this review will likely influence the country’s future power mix beyond 2030. As part of this strategy, the trade ministry is reportedly considering the possibility of expanding nuclear power plants as older reactors are decommissioned.
Investor expectations regarding Mitsubishi Heavy’s energy and defense business have driven the company’s shares to almost double this year, reaching a new all-time high on Friday. In its latest mid-term management plan, the company has identified gas turbine engines, nuclear, and defense as its core business segments. Mitsubishi Heavy aims to increase its revenue in these areas by ¥1 trillion ($6.3 billion) by the end of fiscal 2026.
According to Izumisawa, the firm currently holds a 46% global market share for large-scale turbines as of 2023. Strong demand from countries such as the US and China has contributed to this growth. Additionally, he mentioned that demand from Southeast Asia is expected to increase in the future as the region develops and requires more electricity.
Mitsubishi Heavy has set a goal of doubling its revenue from its defense and space business to ¥1 trillion by fiscal 2026. This ambition is fueled by Japan’s recent increase in defense spending. To achieve this target, the company plans to expand its workforce in the defense segment by 30% and may also consider constructing additional production plants, according to Izumisawa, the company’s representative.
While Mitsubishi Heavy benefits from the weak yen in terms of its export business, Izumisawa expressed concern about the current level of the currency. He stated that the yen feels “a little too weak” and highlighted the negative impact it has on predictability, as well as the increased prices and energy costs for individual consumers. Izumisawa believes it would be more favorable if the yen maintained a stable level.