The Shaw Group announced today that the People's Republic of China's State Nuclear Power Technology Company (SNPTC) has selected the Westinghouse/Shaw Consortium and Westinghouse's AP1000 passive Generation III technology as the basis for four new nuclear power plants to be constructed in China. The AP1000 Consortium will begin working closely with SNPTC to negotiate final contract details with implementation of the new build programme expected to begin in early 2007.
JM Bernhard, Jr, chairman, president and CEO of Shaw, said, "We are exceptionally pleased to be a part of the AP1000 Consortium and with our role in supporting China's growing energy needs with the safe, modular and economical AP1000 technology. These first four "next generation" units will provide a sustainable source of critically needed power generation for the citizens and the government of the People's Republic of China and we are delighted to be partnered with Westinghouse Electric Company in these significant projects. This project also represents the beginning of a major construction programme for China to add at least 20 000 megawatts of nuclear power over the next 15 years. We look forward to a long and mutually beneficial relationship with our Chinese clients for these and future nuclear units."
Richard F Gill, chairman of the executive committee and interim president of Shaw's Power Division, added, "It has been a tremendous honour to work with President Chen Zhaobo and SNPTC on this most important initiative. We thank them for the extremely professional and courteous manner in which the negotiations for this selection have been handled. We believe this venture will become a benchmark for future projects and an example of how our countries can successfully work together on very complex industrial projects. Shaw is committed to upholding this spirit of collaboration and innovation as we work together with the People's Republic of China to finalise contract terms on these first four nuclear projects."
As part of the AP1000 Consortium, Shaw will provide engineering, procurement, commissioning, and management services for the four Chinese nuclear generation units. The projects are expected to spur significant economic opportunity in China, as well as in the US with skilled engineering jobs being created in Shaw offices in Massachusetts, New Jersey, North Carolina and Louisiana as a result.
Shaw is a pioneer in the nuclear services industry and has a long-standing relationship with its partner, Westinghouse. Shaw and Westinghouse collaborated to build the first commercial nuclear generating plant in the US at Shippingport, Pennsylvania in the 1950s. Shaw has performed as architect-engineer on 17 domestic nuclear units and is presently completing the construction restart of Tennessee Valley Authority's Browns Ferry Unit #1 in Alabama, the largest nuclear construction project currently underway in the western hemisphere. Shaw is a leader in providing nuclear modifications and maintenance services, with 40% of the nation's market share. The company is certified by ASME to both engineer and fabricate piping systems for nuclear power facilities. Shaw is also a 20% owner of Westinghouse.
The selection of Westinghouse and Shaw to supply new nuclear plants in China is the most recent in a series of positive announcements regarding the AP1000 passive Generation III technology and new nuclear construction. The AP1000 technology obtained Design Certification from the US Nuclear Regulatory Commission and is the current technology selection for at least 12 proposed new units in the US. Westinghouse and Shaw are working closely to support this proposed growth in the domestic nuclear power sector.
Westinghouse Electric Company is the world's pioneering nuclear power company and is a leading supplier of nuclear plant products and technologies to utilities throughout the world. Today, Westinghouse technology forms the basis for approximately one-half of the world's operating nuclear plants.
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The Shaw Group is a leading global provider of engineering, procurement, construction, technology, maintenance, fabrication, manufacturing, consulting, remediation, and facilities management services for government and private sector clients in the energy, chemical, environmental, infrastructure and emergency response markets. Shaw is also a leading provider of services to the US nuclear industry. Headquartered in Baton Rouge, Louisiana, with nearly $5 billion in annual revenues, Shaw employs approximately 22 000 people at its offices and operations in North America, South America, Europe, the Middle East and the Asia-Pacific region. For further information, please visit Shaw's website at www.shawgrp.com.
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