Dongfang Electric Signs Cooperation Agreement with Japan Steel Works for Nuclear Components

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Researched by Industrial Info Resources (Sugar Land, Texas)--The signing ceremony of the cooperation agreement between Dongfang Electric Corporation (SHA:600875) (Chengdu, China) and The Japan Steel Works Limited (TYO:5631) (JSW) (Tokyo) for the supply of large forged pieces for nuclear power units was held at Dongfang (Guangzhou) Heavy Machinery Company Limited (DFHM) (Guangzhou, China), the coastal manufacturing base of Dongfang Electric, on November 27, 2008. Mitsuhiro Uchikoshi, Managing Director of JSW; Hongju Tang, Dongfang's Deputy General Manager of Nuclear Business; Guogang Su, General Manager of China Nuclear Power Engineering Company (Shenzhen, China); and Hong Wang, General Manager of DFHM attended the ceremony.

DFHM has established a sound cooperative relationship with JSW since 2006. Prior to the signing of the agreement, both parties signed the supply contract of large nuclear power forged pieces for pressure vessels and steam generators in reactors for the Hongyanhe and Ningde nuclear power projects.

In order to adapt to the swift development of the nuclear power business in China, the signing of the new agreement to supply the forged components for pressure vessels and steam generators will secure Dongfang's raw materials demand for the smooth performance of successive nuclear power orders in future years, said the company.

Dongfang Electric is currently the only manufacturer in China that has successfully delivered conventional island and nuclear island equipment for a 1,000-megawatt (MW) nuclear power unit. Dongfang Electric has signed contracts with nuclear power developers in China for the supply of nuclear power equipment for projects such as Ling'ao II in Guangdong, Hongyanhe in Liaoning and Ningde in the Fujian province.

As a subsidiary of Dongfang Electric jointly established by Dongfang Electric, Guangdong Yuedian Group Company Limited (Guangzhou, China), Guangzhou Nansha Chemical Investment Company Limited, Guangzhou Heavy Industries Group Company Limited and China Erzhong Heavy Machinery Corporation (Deyang, Sichuan) in Nansha of Guangzhou City in May 2004, DFHM is capable of producing pressure vessels for two sets of 1,000-MW nuclear power units per year at present. The company's annual production capacity will be expanded to main nuclear island equipment for three sets of 1,000-MW nuclear power units as well as the general assembly capacity of four sets of 1,000-MW nuclear and ultra-supercritical steam turbine and generator units in 2010 upon the completion of its Phase III Expansion, which is currently under way.

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