In March 2009, Flowserve and SUFA – a subsidiary of China National Nuclear Corp (CNNC) and the largest valve
manufacturer in China– agreed to form the joint venture called SUFA-Flowserve Nuclear Power Equipment Co Ltd.
The new firm was to be based in Suzhou, Jiangsu province and 51% owned by SUFA and 49% by Flowserve.
That agreement formalized a memorandum of understanding signed between Flowserve and SUFA in November 2007.

In a statement, Flowserve said, “Since the initial announcement, both parties have been actively working to complete
the amendment, which has now been finalized and clarifies the path forward for the joint venture.”

The two partners have now signed the amendment to the joint venture agreement, under which SUFA’s ownership share
will be increased to 55%, while Flowserve will take 45%.

As part of the agreement, both companies will supply nuclear power industry valve technology and jointly construct a
manufacturing facility. The joint venture will manufacture safety-related valves, including main steam isolation valves
(MSIVs), exclusively for China’s nuclear power industry. MSIVs are used to assist in the safe shutdown of a reactor in the
unlikely event of a rupture in the plant’s main steam piping.