'Int'l Cooperation in
Nuclear Power Industry'

The following is the first of a two-part text of a paper, titled "The Current Status of Korea's Nuclear Power Plant Industry and the Need for International Cooperation,"which was presented by Kim Tae-woo, executive vice-president of Doosan Heavy Industries and Construction, during the Plenary Session of the 23rd KAIF/KNS Annual Conference ? Ed.

As an executive in charge of the nuclear power plant sector at Doosan Heavy Industries and Construction ("Doosan"), which is the nation's only major supplier of nuclear power plant equipment and materials, I would like to tell you about how the nation's nuclear power plant industry has developed and in what direction it is currently expected to advance, with the focus on my company's nuclear business activities.
First of all, let me briefly tell you about the nuclear power plant activities carried out by Doosan.
In 1980, Doosan built a large factory in Changwon with the aim of engaging in the industrial plant business, including production of power plant equipment and materials. This factory is now capable of producing equipment and materials for large-capacity power plants, ranging from the production of casting and forging to the final assembly of power plant equipment.
While the international nuclear power plant industry suffered a long-term recession following a series of incidents, including one at Three Mile Island in the U.S. and another at Chernobyl in the former Soviet Union, the Korean government took the dramatic step of integrating power plant facilities of several companies into one entity, and have Doosan take over it. The nation continued to build nuclear power plants while making efforts to achieve self-reliance in the relevant technology.
In 1984, the Korean Government set up a plan for self-reliance in nuclear power plant technology in connection with the construction of Yonggwang Nuclear Power Plant Units 3 and 4. When the contract for the construction of these two units was made in 1987, it included an agreement for technological transfer with CE for a Nuclear Island and GE for a Conventional Island of the U.S., respectively, with the selection of Korean businesses as the main contractors in each sector. This laid a solid foundation for establishing national self-reliance in nuclear power plant technology.
Arrangements were made for each relevant entity to assume a role in achieving the ultimate goal of self-reliance in nuclear power plant technology within a short period of time with limited technology, human resources and facilities. As such, Korea Hydro & Nuclear Power assumed the responsibility for comprehensive project management; Korea Atomic Energy Research Institute (now KOPEC) took charge of the system design of a Nuclear Steam Supply System; KOPEC carried out Architectural Engineering; Doosan assumed the role of equipment design and the supply of major nuclear equipment and turbine generators; and KNFC took responsibility for the production of nuclear fuel.
Thus, the nation finally attained the long-cherished goal of self-reliance in nuclear power plant technology by 1995. In the ensuing period, the nation has succeeded in building six Korean Standard nuclear power plants, including the OPR-1000s at Ulchin Nuclear Power Plant Units 3&4. Currently, four additional units are being built.
In 2001, the nation succeeded in developing the standard design of a 1,400MWe-class light water reactor (APR1400) after commencing a technological development project for next-generation nuclear reactors in 1992. Currently, two units are under construction using the newly developed technology, and the nation has a plan to build two more units.
The Korean government poured its efforts into the development of core technologies for the construction and operation of nuclear power plants, particularly in the period 1997-2006. The technology achieved during this period formed the basis for exporting Korean nuclear power plants to other countries.
The nation has achieved remarkable results by developing the domestic technological ability required to design and manufacture most of the components, such as nuclear reactors and steam generators, for pressurized light water reactor-type nuclear power plants, on the back of persistent efforts to raise the localization ratio and experience accumulated through the construction of power plant units in the domestic market, and by developing its own models, even in the nuclear fuel sector.
Based on the experience accumulated during the construction of a number of nuclear power plants in Korea, Doosan was able to export a steam generator, a core component of a nuclear power plant, to China in 1998, and then a replacement steam generator to the Sequoyah Nuclear Power Plant in the U.S. In this way, Doosan took its first step towards becoming a major exporter of major nuclear power plant equipment.
Doosan is currently manufacturing replacement components for the Palo Verde and Sequoyah Nuclear Power Plants in U.S., as well as major equipment such as reactor vessel, steam generator and integrated head package for China's first third-generation AP1000 project.
Now, let's look at some of the changes that have taken place in the world's nuclear power plant industry.
In 1998, BNFL of the U.K. took over Westinghouse of the U.S., and in 2000 it took over the nuclear power plant division of ABB-CE, thereby making it one of the world's largest nuclear power plant company. Westinghouse, which holds the original technology for pressurized light water reactor-type nuclear power plants, has accomplished the vertical integration of all sectors of the nuclear power plant industry, ranging from the production of nuclear fuel to the construction of nuclear power plants and related plant services. It also owns the technology for a new nuclear reactor, the AP-1000, which is expected to become a central force in the world's nuclear power plant market, while displaying its sheer capability in the nuclear services market in the U.S. and Europe.
In 2006, Toshiba of Japan, which took over Westinghouse from BNFL, became a giant nuclear power plant company, with the capability of building both pressurized light water reactors and boiling water reactors. In 2007, WEC won a project for the construction of four AP-1000s in China.
In 2000, Framatome of France merged with Siemens of Germany, changing its name to Framatome-ANP, which in turn merged CEA and Cogema to become AREVA, the world's largest nuclear power plant company. AREVA is capable of carrying out business in virtually all sectors of the nuclear power plant business, from the exploration of uranium to the decommissioning of aging nuclear power plants. Recently, it exported its newest model, the EPR, to Finland and won an order for two units from China.
In Japan, MHI has the monopoly on pressurized water reactor in the domestic market. As a result of building its strength persistently, it is now regarded as equal to AREVA in terms of its technological and business capability. Its own model, the US-APWR, was recently selected to be built by a Utility of the U.S.
As for Russia, the country established ROSATOM by integrating 130-plus nuclear power research institutions and businesses, including Atomenergoprom, which is responsible for the construction and operation of domestic nuclear power plants with support from the government, Technabsexport, which was assigned the duty of exploring for and enriching uranium, and Atomstroy Export, which was given the responsibility of building nuclear power plants in foreign countries. With 200,000 employees, ROSATOM is a business that has accomplished the vertical integration of all sectors of the nuclear power plant industry, ranging from the exploration of uranium to the construction of power plants. It appears to be a strategic choice aimed at intruding the world's nuclear power plant markets in this era of high international oil prices.
In addition to such a trend toward larger-sized businesses for the enhancement of competitiveness, strategic alliances between major players are also being briskly carried out. Hitachi of Japan and GE of the U.S. launched Hitachi-GE Energy in Japan (and GE-Hitachi Energy in the U.S.) through the merger of their nuclear power plant division in an effort to reinforce competitiveness in ABWR and ESBWR, third-generation reactors, through the maximization of their technological and regional synergies. They also have the capability to carry out all aspects of nuclear power plant activity, ranging from architect engineering to the production of nuclear fuel.
AREVA and MHI of Japan agreed to carry out the joint development of a 1,100MWe-class nuclear reactor, targeting overseas markets. They agreed to establish a joint venture named Atmea, which will take charge of the technological development and sale of the model as well as cooperation in wide-ranging areas, including the production of major equipments, service, the reprocessing of used nuclear fuel, and the development of next-generation reactors.
The Toshiba/WEC Group made an agreement with Kazakhprom, a national atomic company in Kazakhstan, for cooperation in the nuclear power plant business. It also made an agreement with Atom-energoprom of Russia for comprehensive cooperation in the nuclear power plant business, including engineering, the manufacturing and repair of nuclear equipment and the production of nuclear fuel. nw

Kim Tae-woo, executive vice-president of Doosan Heavy Industries and Construction

Doosan Heavy Industries and Construction plays a leading role in equipment design and the supply of major nuclear equipment and trubine generators.