China has 26 nuclear power plants under construction with an equipment localisation rate of 85%.Eight units start their commercial operation this year.
The provinces which have nuclear power plants, such as Shandong, Sichuan, Zhejiang, Jiangsu, and Guangdong have been investing since 2010 in various modes, either as a shipping port, a training and service center, a manufacturing complex, or single equipment facilities. These parks are either private, or under a form of private-public partnership. With the restart of the nuclear power projects, these industrial parks are leaders in a market of 600 Billion CNY (97 Billion USD).
As an emerging nuclear power market, Turkey needs to learn from the Chinese experience and outline the positioning of its industry. Below are some examples of successful industrial parks in China.
- Zhejiang: Haiyan and Hangzhou
Haiyan benefits from the construction of the first nuclear power plant in China, known as Qinshan Nuclear Power Station. The county created in 2009 the Haiyan Nuclear Power Industrial Park.
Qinshan base is the reference for the localisation of equipment and Haiyan had to invest in the domestic procurement to set up an industrial chain such as lifting equipment, water treatment equipment, cooling tower accessories, seamless tubes and electrical components.
In 2012, the local authorities decided to position Haiyan as the national center for spare parts, repair shops, construction and maintenance, but also in the field of research and development for third generation equipment, and finally as a distribution center for all CNNC projects. Haiyan authorities value the service industry to 500 Billion Yuan (around 81 Billion USD).
The city of Hangzhou is following this trend and recently created the Great Jiangdong Hangzhou City New Energy Industrial Park and started engineering nuclear coating.
Since 2010, the Shandong Province emphasises on the development of nuclear power equipment manufacturing and logistic services for the AP1000 and CAP1400 in two main parks, Haiyang and Yantai. The Yantai municipal government developed a series of preferential policies, such as tax waiver, to ensure the improvement of the nuclear power industry and focused in the promotion of the park to domestic central enterprises, institutes and universities.
The inflow of investment in this plan reinforced the growths of other markets such as leisure, tourism, and resort projects.
In 2012, an area of 2 square kilometers for nuclear power equipment was set up in Nanjing Riverside Technology Industrial Parl. This area becomes Jiangsu’s largest nuclear power equipment industry Park.
Nanjing Riverside Nuclear Power Equipment and Technology Industrial Park focus on the development of nuclear power plant construction and installation, auxiliary equipment, heavy equipment, smart grid and high-end equipment to grasp a market share of 10 Billion CNY (1,6 Billion USD).
The Jiangyin-Jingjiang Industrial Park currently has a group of ten manufacturer that produce nuclear grade pumps, valves, piping, special doors, pressure vessels, low-voltage switchgear and other products for VVER and other technologies. In 2014, the sales of equipment rose by 21.3%.
Shanghai, has been actively developing nuclear power services for domestic and foreign markets and views itself as a leading, world-class nuclear power innovative industrial base. The nuclear market in Shanghai creates directly and indirectly 2 million jobs.
Shanghai has hundreds of enterprises engaged in nuclear development, design, research, manufacturing and related services (i.e. Shanghai Electric, Shanghai Nuclear Engineering Research and Design Institute). From 2007 to 2015, the accumulated orders to the local industry reached 75 billion CNY (12 Billion USD), and more than 90 research projects attracted investment of 9.35 billion CNY (1.50 Billion USD);
Taishan Clean Energy (nuclear power) Equipment Industrial Park is a project supported since 2009 by the Guangdong Provincial Development and Reform Commission, and the French government. It was officially inaugurated in 2012.
The park is a magnet for French companies, which provide equipment and services not only for the Taishan Nuclear Power plant (EPR), but also for the fleet of NPP owned by China General Nuclear (CPR1000 and Hualong). The park expects to provide 45% of Guangdong nuclear power equipment needs (42 Billion CNY /6.76 Billion USD), and to become China’s major design, manufacturing, research and development nuclear power equipment industry base with integrated service and maintenance support.
On July 2, the Chairman of China National Nuclear Corporation, Mr. Sun Qin, inaugurated the nuclear industrial park of Gansu, in Lanzhou and Jiayugang.
This industrial park will focus in the fuel recycling, waste management and decommissioning markets, untapped markets in other provinces. The park has a strategic place to deliver equipment and services for the Lanzhou and Beishan sites.
Langfang, based in Hebei had an economical development zone in 1992. In 2014, the municipality expanded to the new high tech zone in Anci District. The park did not have any specific nuclear related investment. However at the end of 2014 the municipality signed with China Nuclear Power Engineering Co., Ltd. (CNPE) an agreement for the creation of the CNPE Research and Development Center to foster the development of the new China Nuclear Power Industrial Park. This investment is certainly due to the proximity of Anci to CNPE in Beijing and its subsidiary in Shijiazhuang. Anci District, in a radius of less than 100 Km reaches Beijing, Tianjin and their airports, and the ports of Tianjin, the ports of Jingtang and Huanghua (200Km), and Qinhuangdao (300 km). The original investment of CNPE is 1.518 Billion CNY (245 Million USD) in the field of fuel retreatment, decommissioning and waste management laboratories and research center. By looking to Gansu project, we can expect synergies between Langfang, Lanzhou and Jiayugang parks, all under CNNC investment.
What can Turkey learn from the Chinese experience?
- Local governments not only create favorable conditions for the development of the industrial parks but also actively encourage the industry to participate in the Nuclear Industry Association, to publish their innovation and research in national magazine such as “China Nuclear Industry News,” and to promote their park to foreign investments.
- The Turkish industry is mostly disseminated around Istanbul, Ankara, Izmir and Bursa, while the first nuclear power plant will be built in Mersin (760 Km from Izmir), and the second project, in Sinop, is 680 Km from Istanbul. The Turkish industry should use the Technology Development Zones such as Mersin, Cukurova, Hatay, and Gaziantep for Akkuyu, Samsun and Trabzon for Sinop and will certainly benefit from the financial support of the Scientific and Technological Research Council of Turkey (known as Tübitak). By relocating a fragment of the facilities close to the nuclear power plants, not only the industry answers to the operator needs for proximity, but also expands to the service industry such as maintenance and repair.
- Finally, the industry must regroup under a large think tank, similar to the China Nuclear Energy Association, or the Burgundy Nuclear Partnership in France and start promoting its local innovations, business development and jobs creation to the local community and central government.