Get set for N-contracts

Jun 17 2009 by Jez Davison, Evening Gazette

DEMAND generated by the new nuclear build programme in the UK is likely to overtake supply chain capacity unless firms step up to the plate now.

That was the message from the head of the Nuclear Industry Association (NIA) to a packed audience who gathered at Wynyard for the launch of regional energy sector trade body NOF’s nuclear division.

Keith Parker, chief executive of the NIA, held up Stillington-based Darchem, which last week won the go-ahead to supply three nuclear installations in China and has invested £4m in upgrading its facilities on the promise of future nuclear orders, as a company well placed to benefit from the billions of pounds flooding into the supply chain over the next six years.

Worldwide, the NIA estimates that 230 new nuclear power stations will be ordered by 2020, driven by increased power demand, security of supply issues, and the imperative to drive down emissions.

In Britain, 12 stations are proposed over the next six years with the first orders due to hit the supply chain by 2011.

Mr Parker said the principle contractors - Areva and Westinghouse, which between them are responsible for the majority of the new build projects - were already building supply chain partnerships.

“They have had a policy of buying where they build and we fully expect it to repeat the buy local approach that served it well in Korea, in the UK. New build programmes are increasingly building alliances which will cascade down into the supply chain,” said Mr Parker.

Westinghouse has already established partnerships with Rolls Royce, as had Areva with Balfour Beatty.

An NIA report in 2006 predicted that the UK nuclear supply chain could supply 70% of a build programme. “With investment, that could rise to 80%,” he added. “Areva is signing purchase orders in 2011/2012. That means 2009 is when we have to develop the industrial landscape.”

George Rafferty, chief executive of NOF, told suppliers: “People think nuclear is for the future; it’s not, it’s here and now. That’s why it’s such a key stage in NOF’s development.

“Oil and gas remain our core but we are disussion with Areva and Westinghouse and EDF for events later this year. We are cranking up our opportunities in new build, decommissioning and ITER (the nuclear fusion demonstration plant in southern France) - they are prequalifying suppliers now. This is the time to declare your interest.”