– What is the geography of TVEL supplies?
– 17% of the world market belongs to TVEL, which are 76 reactors in 15 countries. Four of them are foreign design reactors in Europe. Thus TVEL is present not only at the traditional market, but it has also entered new technological and geographical markets. Besides we are the company producing fuel for various types of nuclear reactors: we supplied our fuel components for heavy fuel reactors in Asia. We work in the CIS countries, in Europe, cooperate with China and India. The expansion potential is huge. TVEL has developed its own fuel type for western reactors. One contract is already signed, next year there will be the first delivery. We are sure in this program’s success and are hoping to expand our presence at the world market shortly.
– Who are your rivals?
– On the uranium enrichment market those are Areva, URENCO and USEC. What’s special about the recent years is that commercial enrichment has switched to modern gas-centrifugal technologies. The technological process of foreign companies gives us additional stimulation – it is important for us to compete with strong rivals. With all that we are ready for cooperation and realization of joint projects. Our today’s rivals tomorrow may become our partners. New players also will appear.
– In Germany, after giving up their nuclear energy, the atomic giants had to fire thousands of employees. E.ON fired 11000, RWE – 8000, the German branch of Areva – 1300. Fuel demand has decreased; the rivalry for client has grown. Does TVEL feel this?
– We felt it most at the enrichment market. What expanded rivalry a great deal was that almost all producers had switched to centrifugal technology. This can be said from the way prices for separate work unit fell. The rivalry will grow; even China today offers its services. If the prices fall and this process is fair, that means that we by no means should lose our market positions. We have to keep them and get more to keep our income due to scope growth. On the whole the Fukushima catastrophe had a serious influence for all companies of the industry, TVEL is not an exception. In Germany they closed two of those units where we together with Areva had been delivering our reprocessed uranium fuel.
– Do you think it will make you change the plans?
– The Japanese catastrophe just readjusted our direction, but didn’t make us change our plans.
– Is it expected that part of European nuclear stations working today on American fuel will switch to Russian? How big is this market?
– PWR reactors using 17х17 fuel are the major segment of the market. So it is quite natural that TVEL is developing its own fuel of the type. Potential clients from different regions show their interest to our offer. The market demands, among which there is suppliers’ diversification, make us sure that we will be successful in promoting Russian-designed fuel abroad. We have to go to the markets where our rivals are today. The interest shown to us today is already turning to contracts. Thus next year it is planned to load Russian fuel to PWR reactor of one European company.
– Who TVEL is planning to cooperate at foreign markets with?
– Next year there will be a 20 years’ anniversary of the TVEL-Areva international cooperation for supplying nuclear fuel from reprocessed uranium to European NPPs. As part of this cooperation our affiliate MSZ produces fuel bundle upon French technology. This year the assembly #3000 has been done. So we can say that TVEL has the unique experience of business globalization, making alliances with foreign companies. This is how Alvel in the Czech Republic appeared, this is how the project with Kazakhstan is being implemented. First of all, TVEL, being a global company, made a decision to put part of its fabrication abroad, closer to clients. The first project of this kind is being implemented in Ukraine where we created a joint venture for building a plant for fuel production using Russian technologies. In 2015 the enterprise will start its work. Further it is going to satisfy 100% of the country’s needs. Advantages for other countries are obvious. TVEL will expand its product slate, strengthen its positions in Ukraine and provide long-term service supplies there. The other project at the implementation stage is creation of Russian-Kazakh uranium enrichment center. The joint venture purchased stock of shared of Urals Electrochemical Combine (UEKhK). TVEL is working a lot trying to create supporting infrastructure in Europe. One of these kinds of projects is science and technology centers’ chain. It is expected that they will provide us with technologies and help to attract highly-qualified foreign personnel. We are banking for these centers in terms of promoting general purpose industrial grade production to foreign markets. The pilot country for opening such a center is the Czech Republic, possessing the biggest number of Russian-designed reactors in Europe and willing to expand it. Besides, the Czech Republic has the strongest scientific potential and atomic-oriented industry is well-developed. We are not going to stop there; we will replicate the project in other countries.
