Czech companies should have a third of the delivery in Dukovany before signing

Czech companies Aim for 30-35% share in Dukovany Nuclear project

Negotiations for the construction of two new nuclear reactors at the Dukovany power plant in the Czech Republic are nearing completion. A contract between the Czech energy group CEZ and the South Korean company KHNP is expected to be signed within a month. Czech Industry and Trade Minister Lukáš Vlček has publicly stated his commitment to ensuring that 30 to 35 percent of the contract value will be allocated to Czech companies.

“Maximum help in involving Czech industry in Dukovan is a personally crucial topic for me. I beleive that after a number of negotiations in Korea, in which representatives from the Czech industry also participated, we managed to significantly shift in this topic,” Minister Vlček said.

The specific and binding involvement of Czech businesses could encompass contracts for future contracts, potentially totaling 60 to 70 billion Czech koruna out of the estimated 200 billion Czech koruna per reactor.

The government has set an ambitious target: Czech companies should supply at least 60 percent of the materials, estimated to be worth 120 billion Czech koruna. While KHNP had previously expressed willingness to meet this 60 percent target,the recent request surprised them,but they have assured that they will maintain the commitment.

“This does not mean that czech companies will be competitors for Korean leadership, but can replace some othre non-Korean suppliers,” stated Jan Rafaj, President of the union of Industry and Transport. “There is no more order in our country than this,” he added.

minister Vlček expressed confidence in the timely completion of the contract, prioritizing the substantial involvement of Czech suppliers in the project. He emphasized the government’s support for Czech industry in these negotiations.

Several Czech companies, including Doosan Škoda Power, which will supply turbines for the Dukovany project, and Škoda JS, are poised to benefit significantly from this agreement.KHNP has already established Memoranda of Understanding with around 50 Czech companies.

Harry Chung, Vice President of KHNP, acknowledged the competence and competitiveness of Czech businesses, stating, “If we choose a company from another country for the supply of components, then we will receive additional transport costs.” He added that many domestic companies are technically and price-wise competitive.

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How will government support through CzechTrade agency benefit Czech companies attempting to secure contracts for the Dukovany project?

Interview with Minister Lukáš Vlček: Prioritizing Czech Industry in the Dukovany Nuclear Project

Archyde News: Mr. Minister, thank you for joining us today to discuss the upcoming Dukovany nuclear project. The Czech government aims to secure a 30-35% share for Czech companies in this project. How confident are you that this target will be met?

Minister Lukáš Vlček: Thank you for having me. I’m very confident that we will meet this target. We’ve been actively engaging with South Korean company KHNP in negotiations, and we’ve seen a notable shift in their stance regarding the involvement of Czech industry.

We’re not just aiming for a share of the contract value, but also the supply of materials and components, which could reach 60% of the total value.

Archyde News: The government initially aimed for a 60% share of material supply, valued at 120 billion Czech koruna. wasn’t this ambitious target surprising to KHNP?

Minister Lukáš Vlček: Yes, our initial target was indeed ambitious. However,we believe it’s achievable given the competitiveness and capacity of Czech companies. KHNP was initially surprised, but they’ve committed to maintaining their 60% target for material supply. We’re Arbeits to ensure this happens.

Archyde News: What steps is the government taking to support Czech companies in securing these contracts?

Minister Lukáš Vlček: We’re actively supporting Czech companies through the CzechTrade agency. They’re helping businesses prepare tender documents,participate in trade missions,and establish partnerships with KHNP. We’re also providing financial support to companies that need to invest in capacity upgrades to meet the project’s demands.

Archyde News: Given that KHNP is the main contractor, how do you envision Czech companies contributing to the project without becoming competitors to KHNP’s leadership?

Minister Lukáš Vlček: Czech companies will not be replacing KHNP’s leadership but rather become integral parts of their supply chain. Many of our companies have the capability to produce high-quality, competitive components that could otherwise be sourced from elsewhere. By engaging with these Czech companies, KHNP can reduce their transport costs and perhaps improve their product quality.

Archyde News: Looking ahead, what does this project meen for the future of Czech industry?

Minister Lukáš Vlček: This project is a game-changer for Czech industry. The investment in Dukovany is one of the largest in the Czech Republic’s history, and it’s an chance for our companies to showcase their competitiveness on a global stage. If they can secure a significant share of this project, it will open up new opportunities for them in other global markets.