Westinghouse enlists Doosan for China

27 April 2007

Westinghouse has signed a letter of intent for a contract with South Korea's Doosan Heavy Industries for the supply of two pressure vessels and four steam generators for two AP1000 nuclear power reactors it will construct in China. The contract, to be finalized later this year, is expected to be worth over $350 million.


The letter of intent was signed between South Korea's energy minister Kim Young-ju and Westinghouse President Steve Tritch in Shanghai during an energy forum.


The contract with Doosan is related to a contract currently under discussion between China and Westinghouse, now a subsidiary of Japan's Toshiba, for the construction of four reactors at two sites in China: Haiyang in Shandong province and Sanmen in Zhenjiang province. Construction work on the two plants could begin by the end of 2007, with completion set for 2013. That contract is expected to be finalized in May.


Under the agreement between Doosan and Westinghouse, the pressure vessels and steam generators will be delivered by 2012. The pressure vessels and steam generators for the other two units are expected to be made in China. The Chinese government has announced plans to construct some 31 new reactors of about 1000 MWe by 2020 in order to meet rising electricity demand.


Lee Nam-doo, Doosan' CEO, said, "With our close partnership with Westinghouse, I believe this deal will give Doosan an upper hand in more Chinese civilian nuclear projects on the horizon." He added, "I am hopeful that this will be a golden opportunity for us to expand into the US market through our partnership with Westinghouse."


"This will be the first time Doosan Heavy will export key components for nuclear reactors as a package," according to a statement from South Korea's Ministry of Commerce, Industry and Energy. "The contract will be a stepping stone for South Korean companies to expand in the nuclear power market in China and other countries." South Korea is aiming for nuclear power plant-related exports of $350 million in 2007, up from $300 million in 2006.


Further boosts for South Korean nuclear exports to China could come from the second Nuclear Technology Forum between the two countries, to be held today in Shanghai. The forum is jointly sponsored by the South Korean Ministry of Commerce, Industry and Energy (Mocie) and the Commission for Science and Technology & Industry for National Defense (Costind). It provides the only cooperation channel between the Chinese government and South Korean private nuclear technology companies.


Further information 


Doosan Heavy Industries & Construction



WNA's Nuclear Power in China information paper

WNN: Light shed on Chinese advanced reactor decisions