Under the fast reactor simulation program launched in April 2007, development of an advanced multigroup cross section generation code was initiated in July 2007, in conjunction with the development of the high-fidelity deterministic neutron transport code UNIC. The general objectives are to simplify the existing multi-step schemes and to improve the resolved and unresolved resonance treatments. Based on the review results of current methods and the fact that they have been applied successfully to fast critical experiment analyses and fast reactor designs for last three decades, the methodologies of the ETOE-2/MC{sup 2}-2/SDX code system were selected as the starting set of methodologies for multigroup cross section generation for fast reactor analysis. As the first step for coupling with the UNIC code and use in a parallel computing environment, the MC{sup 2}-2 code was updated by modernizing the memory structure and replacing old data management package subroutines and functions with FORTRAN 90 based routines. Various modifications were also made in the ETOE-2 and MC{sup 2}-2 codes to process the ENDF/B-VII.0 data properly. Using the updated ETOE-2/MC{sup 2}-2 code system, the ENDF/B-VII.0 data was successfully processed for major heavy and intermediate nuclides employed in sodium-cooled fast reactors. Initial verification tests of the …