Wednesday, May 16, 2012

Can the U.S. nuclear supply chain weather the storm?

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Certain factors are crippling the U.S. supply chain. EPC and reactor vendors could help with a more direct approach.
Characterized by its complex business structure, the nuclear supply chain is a challenging environment, and even more so in the U.S., where many key suppliers have faced reduced nuclear production and lost experienced staff through downsizing of their nuclear business and retirements. This begs the question, what is crippling the U.S. supply chain at the moment and what are utilities looking for?

A few years ago, the U.S. nuclear industry thought that a renaissance had begun. At the time, Toshiba received an order for 2 ABWRs for South Texas Project; Westinghouse received orders for Vogtle 3 & 4, Summer 2 & 3, and Levy County 1 & 2; while GE Hitachi was awarded North Anna 3.
“These were thought to be the start of orders for up to 30 new nuclear builds in the U.S. and reactor suppliers were faced with the issue of how to obtain sufficient supply to meet the demand”, says Jeffrey Neubert, President of Supply Chain Management Group.
Then came the recession in late 2008, followed by Fukushima in Japan in early 2010, and the picture changed dramatically. “No one is saying, but the 4 U.S. units that survived (Vogtle 3 & 4 and Summer 2 & 3) will be the only plants under construction for some time, perhaps five years or more”, says Neubert.
 
 

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