President Yoon's Visit, Changes After Promise of Nuclear Power Support
In January of last year, Kim Hong-beom, CEO of Samhong Machinery located in Masanhappo-gu, Changwon-si, Gyeongnam, is smiling as he guides through the site that has regained its vitality. Photo by Jeong Dong-hoon
A small and medium-sized enterprise (SME) producing nuclear power plant equipment is preparing to invest hundreds of billions of won in facilities and hire personnel. Since President Yoon Seok-yeol promised support for the nuclear power industry, the sector has been experiencing a favorable breeze. Leading the charge is Doosan Enerbility, the largest domestic nuclear power company playing the role of the 'eldest brother,' empowering our nuclear power ecosystem.
Samhong Machinery, an SME producing nuclear power plant equipment located in Changwon, Gyeongnam, has decided to invest 15 billion won in processing and welding facilities. On the 28th, CEO Kim Hong-beom of the company said, "Overseas design companies are estimating the commercialization period of Small Modular Reactors (SMRs) to be around 2029 to 2031," adding, "To achieve this, orders need to start from next year, so we are preparing in advance." Along with the investment, the company plans to sequentially hire engineering personnel. He emphasized, "If nuclear power partners unite around Doosan Enerbility, synergy will be created."
SMRs are nuclear reactors with an output of 300 MW or less. They are evaluated to have higher efficiency and safety compared to large nuclear power plants because they allow flexible output control with small capacity and can cool the reactor without cooling water. Being modularized, they are also easier to construct than traditional nuclear power plants.
Equipment companies will play a role similar to foundry (semiconductor contract manufacturing) companies in the semiconductor industry within the SMR sector. Companies like NuScale and TerraPower develop and design SMR structures, while Doosan Enerbility produces the main equipment essential for nuclear power plant construction, and various domestic small and medium-sized partner companies handle components such as pipes, pumps, valves, and tanks related to nuclear power plants.
In January last year, field technicians were manufacturing nuclear power plant components at Samhong Machinery located in Masanhappo-gu, Changwon-si, Gyeongnam. Photo by Jeong Donghoon
Although there were difficult times due to policies like nuclear phase-out, many equipment companies still exist in areas such as Changwon and Busan, Gyeongnam. The domestic nuclear power industry's strength in 'on-time on-budget' construction enabled overseas nuclear power exports, thanks to the nuclear power manufacturing and construction ecosystem created by Doosan Enerbility-centered small and medium-sized partner companies.
Samhong Machinery's investment decision came after President Yoon's visit to Changwon. Recently, at a public discussion held at the Gyeongnam Provincial Office, President Yoon declared this year as the 'first year of nuclear power re-leap.' To this end, measures including 3.3 trillion won worth of nuclear power orders and 1 trillion won in special financial support were announced.
In particular, he revealed plans to focus on SMR research and development, which is expected to determine future nuclear power dominance, aiming to leap forward as an 'SMR leading country.' CEO Kim said, "Under President Yoon's full support, companies have been given an opportunity to invest in SMRs," adding, "Through continuous investment, I hope nuclear power and SMRs will become a pillar of our economy alongside semiconductors, automobiles, and batteries."
It is also positive that good news of overseas nuclear power orders continues to come to companies preparing for SMRs, the future growth engine. Hyundai Engineering & Construction was selected this month as the preferred negotiation partner for the new construction project of the Kozloduy Nuclear Power Plant in Bulgaria, with a total project cost of 18.7 trillion won, which is expected to help increase orders for SMEs.
Previously, in August 2022, our companies won a 3 trillion won (2.5 billion USD) contract for the El Dabaa nuclear power project in Egypt, and in June last year, they secured a 260 billion won contract for tritium removal facilities in Romania. Poland (P?tn?w project) and the Czech Republic (Dukovany nuclear power plant) are also selecting nuclear power plant construction contractors. Nuclear power export contracts worth trillions of won are being signed annually.
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