Westinghouse Electric Company has announced its commitment to source a majority of its steel needs through Czech companies as part of its ongoing localization efforts in preparation for the potential construction of Westinghouse AP1000 nuclear power plants in the Czech Republic and regionally.

To illustrate this commitment, Westinghouse and Toshiba Corporation signed Memoranda of Understandings (MOUs) with Excon Steel a.s. and MODRANY Power a.s. which will cover both the raw production and fabricated steel products utilized in the AP1000 nuclear power plants.

Westinghouse organized a Czech AP1000 steel event in cooperation with Toshiba, Metrostav a.s., the Czech Machinery Cluster and the Czech Steel Federation and Constructional Steelwork Associations on January 29.

Speaking at the event, in the presence of numerous Czech steel company representatives, Danny Roderick, Westinghouse president and CEO, announced that after evaluation of the capabilities, quality and cost, "Westinghouse, Toshiba and our Czech partners are committed to sourcing a significant portion of all steel requirements for the Temelin AP1000s through Czech firms. There are several countries from which we could source these substantial steel requirements but we believe the Czech steel industry is highly competitive and are partners for the long-term."

Westinghouse will source (supply and fabrication) nearly 80,000 Metric tons of steel through Czech companies for its two planned AP1000 plants at Temelin if selected. The amount of steel to be sourced in the Czech Republic is the equivalent of three Eiffel Towers.

A majority of the raw production and fabricated steel products utilized in the AP1000 will be sourced through Westinghouse's Czech partners Metrostav and Vitkovice a.s. Westinghouse already has a number of long-standing agreements with these firms since the beginning of 2012. These two well-respected Czech construction firms would be responsible for procuring the structural building steel, reinforcing steel bar (rebar), as well as the steel needed for AP1000 structural and mechanical modules.

In placing this commitment to Czech firms, Westinghouse will work closely with the industry to qualify companies which will be contracted to manufacture high grade steel components to meet stringent nuclear requirements.

This effort will bring additional competitive capabilities to these firms in worldwide markets. MODRANY Power could potentially provide a majority of the Temelin AP1000 piping needs, which will require the firm to be qualified by the American Society of Mechanical Engineers (ASME). With the necessary ASME qualification, MODRANY Power will then be able to compete in more specialized markets outside the Czech Republic.

Westinghouse has decided that Czech steel capabilities put them in a position to be the supplier of choice for other AP1000 opportunities in the European region. Westinghouse has undertaken sector analysis and several facility reviews over the past months both in the Czech Republic and around Europe.

The conclusion of centering its AP1000 steel production in the Czech Republic will result in thousands of jobs through the following decade and place Czech steel producers and manufacturers in a leadership position in Europe.

"Following our supply chain management process to ensure the highest quality, safety and competitive cost, we can then shortly expect many more announcements of Czech company participation in the potential Temelin AP1000 project and across Europe," Roderick said.