ŠKODA JS signed a Memorandum of Understanding with CNPEC

18. 10. 2019

On October 15, 2019, China Nuclear Power Engineering Company (CNPEC), a subsidiary of the China General Nuclear Power Corporation (CGN), signed a Memorandum of Understanding (MOU) with ŠKODA JS a.s. for cooperation on nuclear project development. CGN has declared its intention to participate in the construction of nuclear new build program in the Czech Republic and its engineering arm CNPEC intends to team up with the Czech supply chain to undertake the specific construction work going forward.

ŠKODA JS has repeatedly emphasized its interest and readiness for participating in the construction of new nuclear capacity in the Czech Republic. It is well qualified thanks to its more than sixty years of continuous activity in the field and current involvement in projects at home and abroad. Regarding domestic nuclear capacities, ŠKODA JS participated in their construction and is currently providing their service, maintenance and modernization. The involvement in the international division of labor and the ability to adapt to new conditions is documented by the fact that its exports to 14 countries accounted for 68% of its sales in 2018. The company is in contact with potential candidates for the construction of new capacities in the Czech Republic. The MOU, signed today, is the first document specifying the content of the discussions.

Under this Memorandum, CNPEC expresses its interest in becoming a general contractor of new nuclear capacities in the Czech Republic on behalf of CGN and ensuring the implementation of the project in all spheres. SKODA JS can offer the required supplies and services, including but not limited to the equipment for NSSS, polar crane, fuel handling machine, technical support in localization of design to Czech legislation, instrumentation and control system, construction project management and coordination.

The document states that it aims to create a cooperation framework between the involved parties and to simplify it, while not having an exclusive character. In addition to mutual support in preparing for the construction of new nuclear capacities in the Czech Republic, it also regulates the procedure in case CGN wins the tender. In the letter to potential Czech suppliers, CGN stated that it counts with their participation of no less than 65% of the project work for the local Czech companies

ŠKODA JS may be invited by CNPEC to participate in the preparation of the bid and in construction of nuclear capacities in other European countries to the extent agreed by the contracting parties. ŠKODA JS will also be welcome to take part in bids for equipment to be supplied to the newly constructed units in China.

Miloš Mostecký, sales director of ŠKODA JS stated in his speech at the ceremony: „Today we signed the Memorandum of Understanding that is the result of our common work on finding opportunities for future cooperation not only in the Czech Republic but also abroad.

The People’s Republic of China is one of the leading countries from the perspective of installed nuclear power capacity, AND it is the absolute leader in the dynamics of development and construction of new nuclear power plants. We are pleased that we participated in one of the projects as a supplier for the Tianwan Nuclear Power Plant.

We hope for future extensive cooperation, since we are truly convinced of its significant potential. SKODA JS brings to the partnership more than sixty years of experience in engineering, production and maintenance of nuclear facilities, knowledge of technologies and trends, as well as the ability to manage projects under the conditions of not only European legislation.

I believe that our Memorandum of Understanding is the first step in the long common journey.“

ŠKODA JS a.s., a member of the OMZ group, is internationally one of the leading engineering and production companies with experience in construction and service of nuclear power plants. Škoda was founded in 1859, the history of the present ŠKODA JS started in 1956. Throughout its existence, ŠKODA JS a.s. has supplied engineering, equipment and services for nuclear power plants, research reactors and spent nuclear fuel storage facilities in Central and Eastern Europe, Scandinavia, France, Germany, USA, Austria, Belgium, China and other countries. Up to the present day, ŠKODA JS has produced and supplied 21 complete VVER 440 nuclear reactors and three VVER 1000 reactors. Currently, almost 68% of the company's revenue is generated by the Engineering Division, the Production Division makes 16% and the Service Division 17%.

China General Nuclear Power Corporation (CGN) is a state-owned clean energy mega-corporation in China. China Nuclear Power Engineering Co., Ltd. (CNPEC) is one of the core members of CGN and the first ever company specializing in nuclear power engineering management in China. Incorporated in February 2004, CNPEC had, as of December 2018, a registered capital of RMB 1.286 billion and about 6000 employees. Based on its core AE capabilities, CNPEC has built a business structure that focuses on nuclear power and conventional clean energy and has plans to gradually expand to other business areas including in-service & decommissioning services and non-nuclear engineering. Since 2010, CNPEC has built and put into operation 20 units in succession, and is now undertaking the construction of 4 nuclear generating units with a total installed capacity of 4.6 GW.