SKODA JS in 2009
Date: 20. 4. 2010
The year 2009 has been the tenth successful year of SKODA JS a.s. within a consecutive period since 2000. As compared to 2008, company revenues increased by 27% and reached CZK 3.9 billion, 38% of which accrues from export. The value of newly received orders increased in a leap due to new long-term contracts by 195% and hit a record of CZK 11.7 billion.
Thereby, in 2009 ŠKODA JS a.s. obtained net profit amounting to CZK 194 million. The results imply fulfillment of all indicators of the business plan determined by Russian industrial group OMZ being the sole shareholder of the company. *
The favorable results in 2009 have also been reflected in pay growth within the company, which has increased by 4.2 % as compared to the previous year. Despite the economic crisis, the number of employees has risen by 20% to nearly one thousand. It is anticipated that at the end of 2010 almost 1100 highly qualified staff will have been employed with the company.
The volume of contracts concluded for large investment projects ensures workload of design and other engineering capacities of the company for at least five years, with the perspective of further new projects in Temelin, Dukovany and Jaslovske Bohunice, in relation to which selection procedures are already in progress. Similarly, the frame contract concluded with CEZ, a.s., for service of reactor halls of six nuclear power units at Dukovany and Temelin, provides clear scope of activities to the service division of the company.
A pleasant fact is also the good situation in production, whose capacities have been loaded till 2012 by contracts on average exceeding 80% in the field of heavy components manufacture and nearly 100% in the shops focused on precise equipment manufacture. In case of manufacturing orders increase by up to 20%, the company may introduce shift work intensification. Any further increase could be subsequently solved by means of technological and personnel investments.
Largest investment projects in 2009
In June 2009, a contract was signed between SKODA JS a.s. and Slovenske elektrarne, a.s.in Bratislava, for completion of the nuclear island of Mochovce NPP, Units 3 and 4, amounting to more than CZK 10 billion. This act concluded a two-year period of negotiations and preparations, in the course of which ŠKODA JS became one of five major suppliers for this large project. The supply of crucial systems of the project represents a great success, which underscores the leading position of the company among other suppliers of large investments units in the nuclear power business in the Czech and Slovak Republic. The contract ensures development and expansion of the company in its key sphere of activities in the following years and it will also enable to train a new generation of experts, who will subsequently apply their knowledge and skills upon the planned construction of new nuclear power units in Temelin, Bohunice and Dukovany.
In the year 2009, the first and the remaining second phase of another project representing cooperation with CEZ, Dukovany NPP Instrumentation and Control System Refurbishment, were completed and initiated, respectively. The total value of this currently largest project in the Czech nuclear power business amounts to more than CZK 11 billion. Its implementation was initiated in 2001. The goal of this project is replacement of the original analogue control systems at all four nuclear power units by new digital ones. The complex refurbishment of the control systems will enable up to double extension of the Dukovany nuclear power plant service lifetime. The entire project shall be completed in 2015.
Completion of Units 3 and 4 of the Temelin nuclear power plant
In 2009, ŠKODA JS became the leader of an international consortium, which participates in the tender for completion of Units 3 and 4 of the Temelin nuclear power plant. Further, the Consortium comprises of ZAO ATOMSTROJEXPORT and OKB GIDROPRESS. For the Temelin completion project, the Consortium offers construction of nuclear power units according to European design MIR-1200 (Modernized International Reactor), which is based on VVER-type light water reactors. To this day, the experience in successful utilization of the worldwide applied VVER technology at nuclear power plants has exceeded 1400 reactor years.
In the past, nuclear power plants equipped with VVER-type reactors have been constructed in the Czech Republic, Finland, Hungary and other European countries. The principle is applied to construction of new power plants in Russia, Bulgaria, China, India and further are also planned to be constructed in Slovakia, Turkey, Vietnam, Venezuela, etc. The MIR-1200 design complies with the customer’s requirements and the technology, basic accessories and fuel used by the customer have already been verified and successfully operated on a long-term basis in the past. At present, two nuclear power units of the MIR 1200 type are being constructed in Russia (the Leningrad nuclear power plant). In the Chinese Tianwan nuclear power plant, there are two power units in operation, where the basic design solution of MIR 1200 was implemented.
Implementation of the project in the Czech Republic will bring not only large development of Czech manufacturers – subcontractors, but it will also contribute to the development of Czech technical education significantly. Substantial increase in the chances of Czech companies to participate in new projects in third countries is quite important as well.
Production programs and projects
Good cooperation with a Ukrainian nuclear power plant operator in the field of equipment supplies financing resulted in conclusion of a contract for the supply of spent fuel compact storage racks for Units 3 and 4 of the Zaporozhe nuclear power plant and Unit 1 of the Rovno nuclear power plant amounting to more than CZK 300 million.
Cooperation with AREVA NP in the field of nuclear equipment manufacture was enhanced by another contract for manufacture of EPR reactor internals for the first unit of the Chinese Taishan nuclear power plant. Within ŠKODA JS, this project continues the production of the same equipment for the newly constructed Unit 3 of the Olkiluoto nuclear power plant, which represents a pilot project concerning the EPR technology in the world. The supply of the reactor internals to Taishan is planned for 2012.
The company continued its successful operation on the Ukrainian market by supply of a set of 70 pieces of LKP-M modernized control rod drives for Unit 3 of the Rovno nuclear power plant. This has been the ninth set of LKP drives supplied to this territory.
In cooperation with a foreign partner, supply of a reactor main flange joint stud tensioner for the Mochovce and Bohunice nuclear power plants was implemented.
In 2009, ŠKODA JS supplied ten remaining pieces of CONSTOR®RBMK 1500 spent fuel transport and storage casks out of the total 98 pieces for the Ignalina nuclear power plant in Lithuania. In 2010, production of 39 pieces of modernized casks of the same type will be initiated. To the Bulgarian Kozloduy nuclear power plant, SKODA JS supplied eight CONSTOR®440/84 casks including internal baskets according to its own design. Four CASTOR®440/84 M casks were also supplied to the second interim spent fuel storage facility at the Dukovany nuclear power plant.
Service
In 2009, SKODA JS made progress in terms of introduction of new supplier service project, where it acts as the exclusive supplier of maintenance of the reactor hall logical unit at the Dukovany and Temelin nuclear power plants. Within the above period, local centers at both nuclear power plants were prepared and stabilized in terms of personnel and professional readiness. In 2009, the planned outages of the reactor hall logical unit were managed within the planned deadlines. Further negotiations with CEZ a.s. resulted in conclusion of contracts for provision of complex maintenance of the reactor hall at all six Czech nuclear power units in 2010.
Miroslav Fiala
General Director and Chairman of the Board
In Plzen on April 20, 2010
Contact:
ŠKODA JS a.s.
Orlík 266
316 06 Plzeň
jan.stolar@skoda-js.cz
www.skoda-js.cz
SKODA JS a.s. – was at the birth of Czech and Slovak nuclear power business; it is one of leading engineering and production companies with experience in construction and service of nuclear power plants with worldwide operation. Skoda was established in 1859, the beginning of its activities in the nuclear power business falls in 1956. For the period of its existence, the company has provided engineering, equipment and service for nuclear power plants, research reactors and spent fuel storage facilities in Central and Eastern Europe, Scandinavia, France, Germany, USA and the Far East. To this day, SKODA JS has produced and supplied 21 complete sets of VVER 440 type reactors and 3 sets of VVER 1000 reactors.
----------------------------------
* Preliminary, not-yet-audited results of ŠKODA JS a.s. according to the International Financial Reporting Standards (IFRS).