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Business / Economy

China's nuclear companies eyeing massive South African tender

By Lyu Chang (China Daily) Updated: 2014-03-15 08:04

China's nuclear companies eyeing massive South African tender

China's nuclear companies are promoting their own technology in South Africa, which is set to offer the largest tender in the country's history-an estimated 1 trillion rand ($93 billion) contract to build six new nuclear reactors by 2030.

South Africa marks a potential new market for Chinese nuclear companies, including State Nuclear Power Technology Corp and China General Nuclear Power Corp.

"We have been planning years ahead for cooperation. If we lose this golden opportunity to export our reactors there this time, we will have to wait another 50 to 60 years," said an employee at Beijing-based State Nuclear Power Technology Corp who preferred to remain anonymous.

Nuclear energy always involves governments, but bilateral energy cooperation agreements, which cover the supply of nuclear energy products, infrastructure funding, supplier development and localization, as well as skills development, are still under consideration between China and South Africa, according to the website of the Ministry of Commerce.

In February, the Nuclear Energy Corp of South Africa signed a skills development and training agreement with the two Chinese State nuclear energy corporations-China General Nuclear Power Corp and State Nuclear Power Technology Corp-in Johannesburg.

The agreement will create opportunities for young South Africans to further their studies in nuclear energy and other specialized areas of energy at Chinese universities, with funding of up to 95 percent from Chinese institutions.

Wang Binghua, president of State Nuclear Power Technology, which formed a joint venture with Westinghouse Electric Co, the US nuclear group owned by Japan's Toshiba, to help sell Westinghouse nuclear reactors globally, said it was a key step toward nuclear power cooperation between China and South Africa.

He said China has intellectual property rights for the third-generation nuclear power technology known as CAP1400, based on technology used in the AP 1000 reactor technology of Westinghouse, which means that China is able to export its own reactors.

"It is very important for China because, by achieving our own nuclear technology, China could become a strong nuclear power country and establish itself on the international stage," he said.

At the same time, bidders from countries such as France, the US, Canada and South Korea are all desperately seeking a slice of the action, as are construction companies and equipment manufacturers capable of fulfilling a deal of such magnitude.

But China's nuclear industry has its own advantage in winning the bid.

Premier Li Keqiang said on Thursday when he met the media to wrap up the annual session of the national legislature that, while meeting the same quality, China is able create the construction equipment faster at a lower cost if overseas countries want to build high-speed railways and nuclear power plants.

China's nuclear energy development is a big priority on the government's agenda not only as an alternative energy source but also as a potential industry for export.

China's nuclear companies eyeing massive South African tender
China's nuclear companies eyeing massive South African tender
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