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Released February 06, 2018 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Bankrupt Westinghouse Electric Company (Cranberry Township, Pennsylvania) has secured a five-year contract to supply nuclear fuel to seven of Ukraine's 15 nuclear power reactors between 2021 and 2025.
The deal extends an existing contract for six reactors that was set to expire in 2020 and was awarded by Ukraine's State Enterprise National Nuclear Energy Generation Company (SE NNEGC) Energoatom. Nuclear power supplies roughly 50% of Ukraine's electricity, and last year the government committed to ensuring that nuclear will continue to supply half of its power out to 2035. The plants use VVER-1000 nuclear power plants. A key part of Ukraine's strategy is reducing its reliance on Russian nuclear fuel, coal and gas imports as the country continues to fight Russian-backed rebels in the disputed Crimea region of the country. The deal is good news for financially troubled Westinghouse, owned by Toshiba Corporation (TSE:6502) (Tokyo, Japan), which last month entered an agreement to be purchased by Canadian investment firm Brookfield Business Partners Limited Partnership (NYSE:BBU) (Hamilton, Bermuda) for $4.6 billion. For additional information, see January 15, 2018, article - Brookfield Business Partners to Acquire Westinghouse for $4.6 Billion.
"This contract extension solidifies Westinghouse's role as a strategic partner for Energoatom and demonstrates our ability to support Ukraine with their energy diversification," said José Emeterio Gutiérrez, Westinghouse president and chief executive officer. "Under the terms of the new contract, our relationship with Ukraine will be strengthened through our plan to source some of the fuel components from a Ukrainian manufacturer."
Yurii Nedashkovskyi, president of SE NNEGC Energoatom, emphasized that Energoatom is the only operating utility of VVER-1000 reactors in the world that has fully diversified sources of nuclear fuel supply. Mr. Nedashkovskyi commented, "Cooperation with Westinghouse was integral to achievement of this goal."
Westinghouse said that it has "played an important role" in Ukraine's work for independence for more than a decade, supplying fuel since 2005 when the first lead test assemblies were delivered to South Ukraine NPP Unit 3. The manufacturing and assembly of the nuclear fuel will take place at the fuel fabrication facility in Västerås, Sweden, where parts of the production lines are solely dedicated to VVER-1000 fuel. In 2016, Industrial Info reported that Westinghouse was investing tens of millions of euros to build additional production facilities, carry out fuel engineering work and procure additional process and assembly equipment for manufacturing the fuel. The plant, which has been in operation since 1966, manages the complete process, from enriched uranium hexafluoride to finished fuel elements. More than 60% of the 131 nuclear power plants operating in the European Union are based on Westinghouse technology. For additional information, see May 9, 2016, article - Westinghouse Expands European Nuclear Fuel Factory.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
The deal extends an existing contract for six reactors that was set to expire in 2020 and was awarded by Ukraine's State Enterprise National Nuclear Energy Generation Company (SE NNEGC) Energoatom. Nuclear power supplies roughly 50% of Ukraine's electricity, and last year the government committed to ensuring that nuclear will continue to supply half of its power out to 2035. The plants use VVER-1000 nuclear power plants. A key part of Ukraine's strategy is reducing its reliance on Russian nuclear fuel, coal and gas imports as the country continues to fight Russian-backed rebels in the disputed Crimea region of the country. The deal is good news for financially troubled Westinghouse, owned by Toshiba Corporation (TSE:6502) (Tokyo, Japan), which last month entered an agreement to be purchased by Canadian investment firm Brookfield Business Partners Limited Partnership (NYSE:BBU) (Hamilton, Bermuda) for $4.6 billion. For additional information, see January 15, 2018, article - Brookfield Business Partners to Acquire Westinghouse for $4.6 Billion.
"This contract extension solidifies Westinghouse's role as a strategic partner for Energoatom and demonstrates our ability to support Ukraine with their energy diversification," said José Emeterio Gutiérrez, Westinghouse president and chief executive officer. "Under the terms of the new contract, our relationship with Ukraine will be strengthened through our plan to source some of the fuel components from a Ukrainian manufacturer."
Yurii Nedashkovskyi, president of SE NNEGC Energoatom, emphasized that Energoatom is the only operating utility of VVER-1000 reactors in the world that has fully diversified sources of nuclear fuel supply. Mr. Nedashkovskyi commented, "Cooperation with Westinghouse was integral to achievement of this goal."
Westinghouse said that it has "played an important role" in Ukraine's work for independence for more than a decade, supplying fuel since 2005 when the first lead test assemblies were delivered to South Ukraine NPP Unit 3. The manufacturing and assembly of the nuclear fuel will take place at the fuel fabrication facility in Västerås, Sweden, where parts of the production lines are solely dedicated to VVER-1000 fuel. In 2016, Industrial Info reported that Westinghouse was investing tens of millions of euros to build additional production facilities, carry out fuel engineering work and procure additional process and assembly equipment for manufacturing the fuel. The plant, which has been in operation since 1966, manages the complete process, from enriched uranium hexafluoride to finished fuel elements. More than 60% of the 131 nuclear power plants operating in the European Union are based on Westinghouse technology. For additional information, see May 9, 2016, article - Westinghouse Expands European Nuclear Fuel Factory.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
