On January 31, the SASAC issued a public notice: “Upon the approval of the State Council, China National Nuclear Corporation (CNNC) Limited and China Nuclear Engineering& Construction Corporation(CNEC) have been reorganized as a whole and the latter is transferred into CNNC completely without compensation, no longer directly supervised by the SASAC. ”
The announcement is short and less than 100 words, but it will have a far-reaching impact. On the one hand, the vertical integration of CNNC and CNEC can virtually create more market opportunities for new forces in the domestic nuclear power engineering field and the cost of construction of nuclear power stations is expected to gradually decrease. On the other hand, the reorganization and linkage, the policy of ” Going out “will be faster and more efficient, which will surely affect the global pattern of nuclear power competition.
“CNNC-CNEC” restructuring will strongly boost China’s nuclear power “going global.” In the international EPC project competition, the main determinants are the technical level of the general contracting enterprises, the supply chain integration ability, the financing cost and the construction management level. Compared with world-class nuclear power giants (e.g Rosatom), CNNC has its advantages in terms of technology, but slight deficiencies in its supply chain integration capability; relatively low financing costs, but slight construction management capability. Therefore, if CNNC determine to undertake a large number of overseas nuclear power projects either by E + P + C (Design + Procurement + Construction) or E + P + CM (Design + Procurement + Construction Management) models, it will have to rapidly upgrade its supply chain integration capabilities and Construction level.
