Doosan awarded further contract by Westinghouse

05 June 2008

South Korea's Doosan Heavy Industries has signed a contract with Westinghouse for the supply of major nuclear equipment for two AP1000 reactors in the USA. Meanwhile, the company is targeting the Chinese market and plans to raise its production capacities for castings and forgings.

At the end of May, the AP1000 consortium of Shaw and Westinghouse signed an engineering, procurement and construction contract (EPC) for two 1117 MWe AP1000 reactors at the existing VC Summer nuclear power plant site in South Carolina, USA. South Carolina Electric and Gas (SCE&G), the main subsidiary of Scana Corp, executed the EPC contract on behalf of itself and its partner Santee Cooper, a South Carolina state-owned utility. The first unit could enter commercial operation by 2016, and the second in 2019.

The new contract for Doosan, worth some $195 million, closely follows an earlier contract from Westinghouse to supply major equipment, such as steam generators and reactor vessels, for two AP1000s units to be constructed at Georgia Power's Vogtle nuclear power station near Augusta, Georgia. Subject to approvals, the two units are slated to enter service alongside Vogtle's two existing reactors in 2016 and 2017.

Doosan has been strengthening its long-term relationship with Westinghouse after winning the equipment supply contract in 2007 for the world's first AP1000 units at the Sanmen and Haiyang plants in China.

"Doosan has been selected to supply major equipment to all four units of US AP1000s," said Tae Woo Kim, head of Doosan's Nuclear Business Group. He added, "We will speed up our advancement to overseas new nuclear market and consolidate our position as a major nuclear equipment provider."

Chinese market targeted

Doosan announced at the end of May that it had signed a memorandum of understanding (MoU) with China National Nuclear Corp (CNNC) on cooperation on new nuclear power projects in China.

In a statement Doosan said: "By signing the MoU, the two companies reached an agreement on Doosan's full cooperation in upcoming projects for the construction of numerous next-generation nuclear power plants in China, based on which Doosan will also cooperate with the Chinese company in Southeast Asia and Africa, where China has vested interests." It added, "The MoU will also improve Doosan's chance of participating in the upcoming nuclear power projects to be commissioned by CNNC."

Kim commented, "The MoU will strengthen our relationship with the Chinese government as well as clients, based on which we can establish a more stable footing in the Chinese nuclear power market for the future. We will boost our share of the Chinese nuclear power market, and build a reputation as a major supplier of main nuclear power equipment."

Among the projects commissioned by CNNC in China, Doosan supplied the steam generators for both Qinshan Phase-3 units (Qinshan-4 and -5), the reactor vessels for both Qinshan Phase-2 units (Qinshan-2 and -3), as well as equipment for the two AP1000 units at Sanmen and two at Haiyang.

Production capacity boost

Doosan has announced plans to invest 405 billion won ($395 million) by the end of 2011 to increase production of parts for nuclear and other power equipment. The money will be used to expand casting and forging capabilities at its facility in Changwon.

The company plans to increase production of castings from the current 210,000 tonnes to 300,000 tonnes by 2010, while forging capacity will be raised be almost doubled from 100,000 tonnes to 190,000 tonnes.