China’s Nuclear Supply Chain Movement: from Localization to Globalization
“Going Out” is currently the biggest hit world of China’s nuclear industry, which includes not only the reactor technology (read my previous article about China’s nuclear technology going out) or China’s huge nuclear financing but also the nuclear upstream industry. But before the industry can go out of China, it should dominate the domestic market at first.
From 1% to 80%
China has declared its technological self-sufficiency target since the first nuclear power plant Qinshan Phase I was built in 1980s. However, for China’s biggest nuclear project in 1990s Daya Bay Nuclear Power Plant, only 1% of the operation equipment is produced domestically. Few years later, when China started to build Lingao Nuclear Power Plant Phase I next to the Daya Bay project, 30% of the power plant installations were manufactured in Chinese factory.
（Lingao Nuclear Power Plant Phase I）
In 2006, Chinese government set up the goal for Hongyanhe nuclear program to reach 75% self-sufficiency rate by cooperative working of China National Nuclear Corporation (CNNC), State Nuclear Power Technology Corporation (SNPTC), and China General Nuclear Power Corporation (CGNPC) to develop their own technology of large forging devices and nuclear-level valve. In the following few years, almost all core technologies of nuclear power plant has got a breakthrough in China by deepened independent research and widened international corporation.
When it comes to 2010s, the embarking of China's nuclear power plants project brought a big prosperity for civil-use nuclear equipment industry. According to the Ministry of Industry and Information Technology statistics, in 2014, Chinese company supplied 80% of the equipment for current nuclear power plants construction.
As for the Hualong-1 reactor which was designed and developed by China alone in Fuqing Nuclear Power Plant, all core equipment used in conventional island and nuclear island is manufactured by Chinese enterprises. For example, pressure vessels are produced by China First Heavy Industries, steam generator and conventional island turbine are supplied by Dongfang Electric Corporation, and the main pump is manufactured by Harbin Electric Corporation. Over 85% of the unit are Chinese.
（Hualong-1 reactor in Fuqing Nuclear Power Plant）
From the Internal to Global Market
According to China's 13th Five-Year Plan (read my previous analysis about Opportunities of China’s Nuclear Industry Seen from China’s Next Five-Year Plan), China’s total installed capacity of nuclear energy should reach 58 million kW by the end of 2020, additionally with 30 million kW of nuclear power reactors under construction. This target urges China to build 6-8 nuclear reactor units per year. When reflected into the nuclear equipment manufacturing industry, over 40 billion Chinese yuan (US$6.2 billion) has spent by the industry as the budget for research and development said by the Ministry of Industry and Information Technology. It is very exciting to see the outcome of the 40 billion budget will effect.
(China's Prime Minister Li Keqiang visited a nuclear equipment manufacturing enterprise)
M&A Business Development Senior Associate at ITE Capital
8 年<< This target urges China to build 6-8 nuclear reactor units per year. >> Assez impressionnant.
Founder & CEO of kenanaonline.com/yamhnd ???? ??? ??? ???? ???????? ??????? ?????????? ??????????? ?????
8 年No doubt China is planning well to take part in the global promotion of the nuclear energy. This will, generally, activate the nuclear ideology.
Senior Executive Advisor?to?Chief Nuclear Officer (CNO) of Polskie Elektrownie Jadrowe (PEJ)
8 年Very interesting information in this article as well as the questions at its end. My personal opinion is that, for a global expansion of a nuclear supplier, the local factors shall be considered by it to avoid problems such the ones encountered in some actual running new-built projects (e.g., Finland, etc.). By the "local factors" I understand, among others, issues such: - local requirement (e.g., safety and licensing, other legal requirements, etc.): this may require adaptation of the plant design which can be done easier by local companies (familiar with the national rules) than by the main supplier. For example, NPPs suppliers have asked European companies to evaluate theirs standard plant designs against the European licensing requirements before trying to expand to Europe. - supply chains and local workforce: any project outside the country of origin of the supplier shall consider to use local supply chains and workforce to be effective. For doing this, the local culture (way of doing business, education, habits, etc.) shall be considered. The best way to do that is to use local partners support - companies for providing consulting and advice. As a conclusion of the 2 minor examples above, in order to have an effective expansion in the West,, I believe that the Chinese plant suppliers should perform a series of preliminary steps (e.g., such the ones of evaluating the design against the Western requirement, especially in countries with already established nuclear rules) by interacting with local Western support companies such as engineering specialized companies.