Dongfang Electric and France's thermal joint venture to develop nuclear pumps
Dongfang Motor recently announced that it will establish a joint venture called Oriental Ahae Nuclear Pump Co., Ltd. with France Thermomon Co., Ltd. to develop the main circuit coolant pumps for nuclear reactor systems. The joint venture plans to invest a total of 10 million euros, with a registered capital of 85 million yuan. Both parties will contribute equally in cash, each holding 50% of the shares. The company is expected to be completed and operational by 2007, with an annual production capacity of 6 to 8 sets of main pumps for large-scale nuclear power plants.
France Thermomon Co., Ltd. is a subsidiary of France Famatong, a leading French company specializing in reactor coolant pumps and drive mechanisms for nuclear power plants. It also produces wind turbines and environmental protection equipment. Famatong is known as France's largest supplier of nuclear power equipment and has been involved in major projects such as China’s Daya Bay and Ling Ao nuclear power stations. As a key player in the global nuclear industry, working with such a company represents a significant step forward for Dongfang Motor, a leading domestic generator manufacturer, in expanding its presence in the nuclear sector.
Why would a company primarily focused on generators increase its investment in nuclear power? The answer lies in the growing importance of nuclear energy in China's energy strategy. Currently, China's power generation relies heavily on thermal and hydro power, with coal accounting for around 80% of electricity generation. However, this has led to increased pressure on coal supplies and rising greenhouse gas emissions. In response, the government has intensified efforts to diversify the energy mix and promote cleaner sources like nuclear power.
The "Eleventh Five-Year Plan" emphasized the development of renewable and new energy sources, including nuclear power, which is seen as a clean and sustainable option. Although China's nuclear power installed capacity is still relatively low at about 9.3 million kilowatts, the country has made significant progress in recent years. With the need for energy security and environmental protection becoming more urgent, the government has shifted from "moderate development" to "positive development" of nuclear power, signaling a stronger commitment to this sector.
This strategic shift, combined with the growing demand for clean energy, presents a promising opportunity for companies like Dongfang Motor to expand their operations into the nuclear field. By partnering with international leaders in the industry, they are positioning themselves to benefit from the long-term growth of the nuclear power market.
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