Two Major Chinese Nuclear Power Firms Secure $732 Million Contract for Eight Units

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Researched by Industrial Info Resources (Sugar Land, Texas)--China Nuclear Energy Construction Corporation (CNECC) and China Guangdong Nuclear Power Holding Company Limited (CGNPC), two of the country's largest state-owned nuclear project constructors, secured a contract this month for the civil construction of eight nuclear power units. The 5 billion yuan ($732 million) contract is one of the largest investments made toward the development of China's nuclear power stations.

The contract covers the engineering of the nuclear power islands of eight units in three nuclear power stations: in Ningde, Fujian province in southeastern China; Yangjiang, Guangdong province in southern China; and Fangchenggang, Guangxi province in southwestern China.

Huaxing, a construction company affiliated with CNECC and also one of China's largest nuclear power civil engineering contractors, will be in charge of construction of all units.

CNECC is a major enterprise for the country's military. Its business centers upon the construction of nuclear power projects, nuclear projects and national defense projects. The company has been the leading constructor of China's six nuclear power stations and 11 nuclear power units. CNECC's work is mainly in the construction, installation and the trial run of nuclear reactors, as well as the construction of auxiliary power facilities.

CGNPC was established in 1994 under the supervision of the State-owned Assets Supervision and Administration Commission (SASAC), China's top economic planner. It is considered the only "clean energy" corporation in China that focuses on nuclear power. By the end of September 2008, CGNPG's total assets were 89.3 billion yuan ($13.1 billion) with net assets valued at 33.8 billion yuan ($4.9 billion).

China revised its medium- and long-term plan for nuclear power development at the beginning of 2009. The country's total installed capacity of nuclear power is expected to increase to 70,000 megawatts (MW) in 2020 from 40,000 MW.

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