A New Engineering Division in Rosatom is Ready to Compete with Foreign Players
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#1November 2012

A New Engineering Division in Rosatom is Ready to Compete with Foreign Players

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According to Ivan Borisov, Rosatom Director of development and restructuring, a potential stock of orders for the construction of Russian design nuclear power plants abroad exceeds 70 units. That is why it is necessary to revise the scheme of cooperation of Russian participants.

“Earlier the scheme was unbalanced in terms of contract liability of the “ASE” JSC and design competences, focused in other companies,” – he says.

But why did they choose this particular way – to unite NIAEP and ASE? The answer, according to Borisov, is obvious – NIAEP is the one most advanced in detailed design and nuclear power plants construction management, as well as a guaranteed number of orders in Russia. “It was supposed to obtain synergetic effect from the merging of engineering skills and provide regular production capacities of both companies due to the simultaneous execution of projects in Russia and abroad. Today, I believe, this goal has been achieved, “ Borisov says.

Valery Limarenko, the Director of the merged company, agrees with this. Having merged the companies and their competences they managed to concentrate all the functions in one center. The result is a company having more foreign orders than any other company in the world (20 blocks).

The scheme of the new company dealing with international projects is the following. In certain areas they are supervised by the NIAEP deputy directors. Meanwhile some new people arrived to the Belarusian project: Yuri Pustovoy is the head of our part. He was a reliable partner in the construction of block #4 at the Kalinin station, and we decided that these people have to work both with us and for us.

Dmitry Romanets, the director of SMU-1, our subsidiary company, is appointed as the Ignalin NPP construction decommissioning contract manager.
A few words on our strategy

The objective of NIAEP-ASE, according to Valery Limarenko, is to provide the global expansion of the technological platform VVER, increase the market share of NPP decommissioning. Besides, small and medium-scale power generations on the basis of the VVER-55 reactor are also part of the plan.

In the current market conditions, competitiveness requires multitasking and business diversification. NIAEP-ASE is no exception here. Company is also planning construction of non-nuclear complex engineering objects, such as power plants and oil platforms. “Today our share in the world market of NPP construction is 20%, in Russia it is 50%. In 2012, the revenue of the merged company is expected to be $2 billion, and by 2017 – $9.4 billion. The plans of Rosatom, and, hence, ours, are to increase the rate of revenue growth in the field of engineering by 2.7% annually until 2030, “- says Limarenko. “We are trying to obtain the status of sustainable global engineering company equal to our competitors, such as AMEC, Bechtel, Fluor. The merged company is also planning to enlarge the portfolio of projects, that is to go beyond the limits of nuclear generation objects both on national and international levels “, – Borisov sums up.