China Power Investment Corp. merger with Nuclear Technology Firm Shanghai Electric Power
Two significant power players in China, one
with access to Westinghouse AP1000 reactor technology and one with a
sizable electricity production presence, will merge, according to a
regulatory filing submitted Tuesday by Shanghai Electric Power Corp.
The timing of the merger is has not been announced, but the merger of the electricity producer China Power Investment Corp. and the State Nuclear Power Technology Corp. will create a company with assets valued at around $96 billion, according to market analysts.
The merger was revealed in a late afternoon regulatory filing by Shanghai Electric Power Corp., which is a CPI subsidiary.
SNPTC is relatively young. It was formed in 2007 with the purpose of domesticating newly acquired Westinghouse technology that was part of a four-reactor build contract Westinghouse signed that year. With Westinghouse technology, China is developing its own version of the AP1000 model reactor. Its own version is the CAP 1400 reactor model, which is expected to be a selling point for China's nuclear export ambitions.
Market analysts say the merger represents a marriage of money with technology, which could create a forceful player in the global market for nuclear power plant contracts.
China said in January that it would give support to exports that included rail and nuclear power, Reuters reported. China has hopes of becoming competitive with established giants Areva, Rosatom State Nuclear Energy Corp. and Toshiba, Reuters said.
There is also a huge domestic market to consider. CPI is already among the top five independent electricity production companies in China with about capacity of 90 gigawatts. But China has proven itself hungry for new nuclear power plants with an expectation that it will have 48 operating reactors within the next 10 years.
There are 26 reactors currently under construction in China. Upon completion, the power capacity from nuclear plants will jump from 18 GWs to 58GWs.
http://nuclearstreet.com/nuclear_power_industry_news/b/nuclear_power_news/archive/2015/02/04/power-power-investment-corp.-to-merge-with-nuclear-technology-firm-shanghai-electric-power-corp.-020401.aspx#.VNNBhdKl-wM
The timing of the merger is has not been announced, but the merger of the electricity producer China Power Investment Corp. and the State Nuclear Power Technology Corp. will create a company with assets valued at around $96 billion, according to market analysts.
The merger was revealed in a late afternoon regulatory filing by Shanghai Electric Power Corp., which is a CPI subsidiary.
SNPTC is relatively young. It was formed in 2007 with the purpose of domesticating newly acquired Westinghouse technology that was part of a four-reactor build contract Westinghouse signed that year. With Westinghouse technology, China is developing its own version of the AP1000 model reactor. Its own version is the CAP 1400 reactor model, which is expected to be a selling point for China's nuclear export ambitions.
Market analysts say the merger represents a marriage of money with technology, which could create a forceful player in the global market for nuclear power plant contracts.
China said in January that it would give support to exports that included rail and nuclear power, Reuters reported. China has hopes of becoming competitive with established giants Areva, Rosatom State Nuclear Energy Corp. and Toshiba, Reuters said.
There is also a huge domestic market to consider. CPI is already among the top five independent electricity production companies in China with about capacity of 90 gigawatts. But China has proven itself hungry for new nuclear power plants with an expectation that it will have 48 operating reactors within the next 10 years.
There are 26 reactors currently under construction in China. Upon completion, the power capacity from nuclear plants will jump from 18 GWs to 58GWs.
http://nuclearstreet.com/nuclear_power_industry_news/b/nuclear_power_news/archive/2015/02/04/power-power-investment-corp.-to-merge-with-nuclear-technology-firm-shanghai-electric-power-corp.-020401.aspx#.VNNBhdKl-wM
No comments:
Post a Comment