Expectations are growing for Doosan Enerbility’s Czech subsidiary, Doosan Skoda Power, to serve as a foothold for Korea to effectively penetrate the European nuclear market. With the Korean consortium having recently been selected as the preferred bidder for a Czech nuclear power project, Doosan Skoda Power has been gaining a strong market presence, which in turn has led to rising expectations for the company to play a leading role in not only the Czech market, but the overall European nuclear market which is forecast to grow considerably.
On September 20th, the heads of state, government officials and nuclear sector business officials from South Korea and the Czech Republic had come to visit the Doosan Skoda Power headquarters in Plzen, which is located 90km from Prague. The nuclear sector officials, including those from Korea Hydro & Nuclear Power (KHNP), had gathered to hold the “South Korea-Czechia Nuclear Power Full Lifecycle Cooperation Agreement Ceremony” with the heads of state and government officials in attendance, for the purpose of strengthening the cooperation between the two countries in the nuclear sector.
Doosan Skoda Power had signed a memorandum of understanding with KHNP and Doosan Enerbility regarding the supply of steam turbines for the Czech nuclear power plant. Per the agreement, once the contract for the Dukovany Nuclear Power Plant in the Czech Republic is concluded, the steam turbines produced by Doosan Skoda Power will be supplied to the power plant thereafter. The other nuclear components that are to be supplied will be manufactured in Korea.
Currently, a large number of European countries, such as Poland, Romania, the Netherlands and Slovenia, are in the process of pursuing or planning nuclear new build projects. As Korea has plans to use this recent project win in the Czech Republic as a foothold to venture into other European countries as well, the role of Doosan Skoda Power is expected to grow even further. Doosan Skoda Power, with its history spanning over 150 years, has supplied 26 steam turbines for nuclear power plants to three European countries over the years – the Czech Republic, Slovakia and Finland – and has supplied over 540 steam turbines to global clients around the world to date.
Moreover, as Doosan Enerbility is planning to conduct generator*-related technology exchanges for Doosan Skoda Power, Skoda Power’s nuclear project delivery capabilities will likely be enhanced even further. In a show of support for Korea in the Czech nuclear project bid, Doosan Enerbility had held the “Doosan Partnership Day” event in Prague this past May and had used this as a stage to unveil its plans to make a generator-related technology exchange investment amounting to approximately KRW 200 billion for Doosan Skoda Power. Once the technology transfer has been completed, it is forecast that starting from 2009 onwards Doosan Skoda Power will have the capability to produce on its own various types of generators, including those applicable to SMRs and combined cycle power plants..* The generator is a key component of the power plant, one that is connected to the axis of the turbine rotor, and is used to convert rotational energy(mechanical energy) into electrical energy.
To facilitate the generator-related technology exchanges and investments in the manufacturing plant and facilities, the two companies had conducted an internal review last June on the current status of the manufacturing plant, facilities and the technology exchange timeline. In July, Doosan Skoda Power’s design and production engineers had visited the generator shop at Doosan Enerbility’s Changwon headquarters to view the facilities in person and engaged in discussions on the manufacturing feasibility and investment plans.
Such business collaborations prompted by the recent Czech nuclear project and the visit made by the heads of state has been a great source of excitement for the Doosan Skoda Power employees, providing them with renewed vigor for the nuclear project. “Having the South Korean President and the Czech Prime Minister come visit us here at this point of time when we are pursuing the main negotiations for the Czech nuclear project provides us with great joy,” said Daniel Procházka, COO of Doosan Skoda Power. “With their show of support, we expect to see good results, and with the industrial players, including Doosan Skoda Power, from both countries joining forces, I believe we will be able to produce even greater results going forward in the European nuclear market.”
The Czech Ambassador to South Korea, Ivan Jancarek, had also expressed his appreciation at the meeting held with Doosan Enerbility Chairman & CEO Geewon Park on September 12th for Doosan’s decision to make generator-related technology exchange investments. “Successfully executing this Czech nuclear power project will provide a good stepping stone for the Korean and Czech nuclear sector players to jointly participate in many more nuclear new build projects of other European countries in the future,” said Ambassador Jancarek.
“With Doosan Skoda Power securing such technology, we expect this will help raise the competitiveness of both countries in the field of nuclear power,” said Geewon Park, Chairman & CEO of Doosan Enerbility. “Given that nuclear power plant projects encompass the plant construction, operation and lifetime extension work, this means that such projects are long-term projects extending over a century and as such, Doosan aims to steadfastly remain as a partner that one can always count on.”
