WESTINGHOUSE - A BUSINESS SUCCESS STORY IN UKRAINE
Major role in theenergy supply of Ukraine
- long time investor and partner in Ukraine
U.S.-Ukraine Business Council(USUBC),
Wash, D.C., Thursday, July 9, 2015
WASHINGTON, D.C. ---WestinghouseElectric Company is a long time investor and partner in Ukraine. Westinghouse began its work in the country through the supply of safety relatedupgrades to the country’s nuclear fleet in the mid-1990s.
A subsequent establishment of asizable engineering center, combined with the transfer of technology andtraining of hundreds of Ukrainian nuclear specialists were laterperformed.
Westinghouse has had a successful joint venture in Kharkiv for almost 20 yearsthat currently has approximately 200 employees which are trained to EuropeanUnion (EU) and U.S. standards but also are developing products which aretailored to the Ukrainian market.
These investments were made bythe clear advantages of the country and the continued recognition that theexpertise and capabilities of our company were viewed as essential in thefurther modernization of the power sector of Ukraine.
Equally important, they have beencommercially successful and mutually advantageous for both Ukraine andWestinghouse. This strong platform allowed for Westinghouse and Ukraine toembark on much larger and strategic cooperation.
Today,Ukraine relies on nuclear energy for over 50 percent of its electricity butalmost 100 percent of the nuclear fuel from the Russian Federation. Nuclear power generation is the backbone of the country’s energy system withever increasing importance due to the loss of fossil generating assets and rawmaterials in the eastern part of Ukraine.
NUCLEAR POWER AT TIMES HAS PROVIDED ALMOST 65 PERCENT OF THETOTAL POWER SUPPLY
At points during the past year,nuclear power provided almost 65 percent of the total power supply and iswidely viewed as the most reliable of all other energy sources. Thus,secure nuclear fuel supplies are absolutely vital for the country to avoid anypotential disruption in the national power system.
A significant obstacle to mitigating this energy supply risk was the fact therehad never been an effort before to develop nuclear fuel which was not designedand manufactured in Russia and which could work safely and efficiently with theexisting supply, called a “mixed core”.
While the global nuclear practiceis to have at least two available fuel suppliers which can meet stringentregulatory requirements in a mixed core environment, the Russian-designedpressurized water reactors (VVERs) had only been supplied by one entity. Thus, Ukraine would have to begin an unprecedented effort to secure its energysecurity.
This ultimately involved work spanning multiple governments, a significantdedication of resources and an overarching strategic commitment. Thequalification program lasted several years which resulted in the successfultesting and delivery of Westinghouse VVER fuel to Ukraine which is operatingtoday safely and highly efficiently.
While support for this projectwas very uneven depending on the government responsible at the time, the workalways continued as Ukraine saw the clear benefits of diversification andcompetition that increased fuel performance, lowered prices and enhanced itsoverall energy standing.
WESTINGHOUSE AND UKRAINE HAVE BECOME STRATEGIC PARTNERSUNDER PM YATSENYUK
However, the Westinghouse fuel supply had been quite limiteduntil the Government of Arseniy Yatsenyuk took office. Through landmarkagreements with the Ukrainian nuclear operator Energoatom and with the strongbacking of the Ukrainian Government during the past 12 months, Westinghouse andUkraine have become strategic partners transcending across simple business relations.
Picture: Three Westinghouse VVER-1000 fuel assemblies (before packing andshipment).
Westinghouse and the government of Ukraine have takenextraordinary steps to solidify a working relationship which is grounded onmutual trust and accountability to deliver on schedule these fuelsupplies. This point in the commercial relationship has not come withoutsignificant dialogue and engagement. Specifically, their jointsuccess has been created through key communication paths that have allowed forearly detection and remediation of unintended obstacles.
By achieving this successfulcollaboration, Westinghouse intends to further invest in the country and deepenour support for the nuclear fleet. Westinghouse intends to transfer best inclass technologies and engineering to bring higher efficiency and safety to theoperating reactors creating more energy and security while also providing otheropportunities. With success in the next level of cooperation, Ukrainianengineers will become part of our global projects and Ukrainian companies willbe further integrated into our supply chain.
Ukraine possesses one of the best and costeffective engineering resources in the world and this so far largely untappedresource will be supported. Westinghouse has already started with the useof Ukrainian engineers working in Sweden, Spain, South Africa and otherlocations around the world.
The Government of Arseniy Yatsenyuk hasbrought significant improvement to the proper functioning of these agreements.Through its leadership, Westinghouse has become the second largest energysupplier to Ukraine behind Russia.
The magnitude of responsibility forWestinghouse to ensure it delivers on the commitment to the country issubstantial but one which is taken with confidence. The Ukrainian Governmenthas proven to be a highly professional and competent partner. Westinghouse is indeedhonored and proud of its role in Ukraine and intends to further deepen itsinvestment and commitment in the country.
"The U.S.-Ukraine BusinessCouncil (USUBC) congratulates Westinghouse on their outstandingrecord of success in Ukraine," said MorganWilliams, SigmaBleyzer, who serves as President of USUBC. "USUBC isproud Westinghouse has been a member for almost 20 years."
NEWS: For the latest news about Ukraine go to the KYIV POST website: www.KyivPost.com.
The KyivPost of the ISTIL Group is a member of the U.S.-Ukraine Business Council(USUBC).
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