Westinghouse, China Extend AP1000 Reactor Agreement
Westinghouse Electric Co., a unit of Toshiba Corp., signed a two-year extension of a cooperation agreement with China’s State Nuclear Power Technology Corp. on continued deployment of its third-generation AP1000 reactor.
The accord will cover service and maintenance, technology development and strategic investment, Westinghouse said in a statement dated yesterday. This will extend an agreement signed in 2008, Guo Hongbo, director of general office at the state- controlled Chinese company, said by telephone in Beijing today.
Westinghouse joins U.S. companies including General Electric Co. and American Electric Power Inc. in signing accords with Chinese customers this week, coinciding with China’s President Hu Jintao’s first state visit to the U.S. since Barack Obama took office two years ago. Westinghouse is building four AP1000 reactors in China, two each at Sanmen and Haiyang.
“AP1000 will account for close to 60 percent of China’s future projects,” said Dave Dai, a Hong Kong-based analyst at Daiwa Securities Capital Markets Co. “AP1000 is also a key stepping stone for China’s goal to create a localized nuclear reactor manufacturing chain.”
China’s 11 nuclear power generating units all use second- generation technology, the official Xinhua News Agency said on July 22. The nation plans at least 60 new reactors by 2020, Xu Yuming, executive director of the China Nuclear Energy Association, said on July 6.
The AP1000 offers “unequaled safety” and is the most economical reactor, according to Westinghouse’s website. China started operating its first commercial nuclear plant in 1994.
China’s Reactor Development
Toshiba, Westinghouse’s parent, rose 0.6 percent to close at 498 yen in Tokyo trading. The benchmark Nikkei 225 Stock Average advanced 0.4 percent.
China’s State Nuclear Power Technology plans to develop two CAP 1400 reactors that will be based on Westinghouse’s existing AP1000 design, Guo said in an interview on Jan. 5.
“The extension is not a surprise as Westinghouse will continue to work with China on CAP1400, which is an advanced version of AP1000,” Daiwa’s Dai said.
Westinghouse yesterday also reached a $35 million deal with China Baotou Nuclear Fuel to design, manufacture and install fuel-fabrication equipment that will enable China to produce atomic fuel for the AP1000 reactors.
- Wang Ying. Editors: Ryan Woo, Aaron Sheldrick.
To contact the reporter on this story: Wang Ying in Beijing at ywang30@bloomberg.net
To contact the editor responsible for this story: Amit Prakash at aprakash1@bloomberg.net.
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