Westinghouse Electric Corporation
The company makes nuclear reactors, fuel for them and many accompanying products. Nuclear power engineering as the field of economic activity is characterized by very high profitability comparable to indicators of the weapon industry with which it is substantially connected. This feature of the industry sets also the high level of the competition.
The place in international policy of the USA
On January 9, 2019 Westinghouse, after long silence, announced reorganization of the structure which purpose — recovery of positions in the world market of nuclear power. To the middle of 2019 in the company three new divisions will be created.
Plant Solutions is division under the authority of which maintaining all lifecycle of the NPP constructed in different years of Westinghouse from construction before decommissioning, including questions of carrying out scheduled preventive maintenance and prolongation of operation of power units.
Global Operations Services is the organizations of supply chains of nuclear fuel of production Westinghouse, delivery of the associated equipment and engineering services.
America’s Operating Plant Services is division under the authority of which there will be financial aspects of atomic business of the company.
These are the first news from the new owner of Westinghouse among which there is no information on yet whether the American company will return to the world market of reactor building
Fragman replaces Gutiyerres at the head of the company
On May 17, 2019 it became known that the president and the chief executive officer of Westinghouse Electric Company José Emeterio Gutiyerres resigns since July 31, 2019.
Gutiyerres works in the American atomic company since 2008, held positions of the technical director of Nuclear Services, the vice president of the Spanish branch. In 2016 Gutiyerres headed Westinghouse as the acting president and the CEO, and since 2017 was approved as the president and the CEO.
According to the company, Gutiyerres will save a strategic role in Westinghouse as the member of the global advisory board.
Gutiyerres's place since August 19, 2019 is taken by Patrick Fragman before taking a position of the senior vice president of electrotechnical corporation ABB Limited. Earlier Fragman held a post of the senior vice president for atomic business of Alstom.
The new director in EMEA - Bill Puarye
In January, 2019 the name of the new director of Westinghouse of Europe, the Middle East and EMEA is announced — Bill Puarye became him.
The Ministry of Justice of the USA accused Russians of cracking of Westinghouse. The company denies
On October 04, 2018 the Ministry of Justice of the USA accused the Russian citizens of cracking of the systems of Westinghouse company. According to the statement of department, seven "staff of GRU" were allegedly involved in hacker attacks on an electoral system of the USA, anti-doping laboratories, Westinghouse company, theft and the publication of data, washing of means using cryptocurrency.
Westinghouse did not detect the certificates indicating success of attempts of cracking of its systems, the representative of the company of Sar Cassell reported in October 5, 2018 to RIA Novosti.
| ||"In the indictment, really, it is said that there was a phishing campaign (mailings of messages with dangerous links or investments — an edition) against our employees. We did not detect certificates that phishing campaigns against our employees for cracking of the systems of Westinghouse were successful" — told Cassell.|| |
The plan of creation of the portable microreactor for U.S. Army
In September, 2018 it was announced that the Los Alamos national laboratory together with Westinghouse Electric will create the nuclear portable microreactor which can be moved using one truck.
Possibilities of use of such reactor are almost boundless – from space programs before use in humanitarian missions for supply of people with heat and electricity, but the main task for the USA, of course, support of wars.
The associate director on global security of the Los Alamos laboratory of Andy of Erisson confirmed that military are very interested in development of the microreactor in the USA. Under needs of AF Westinghouse is engaged in aspects of adaptation of the device. The mobility and usability should become key parameters of the reactor. It is expected that the reactor can be set and started in an every spot on the globe within 72 hours. According to plans, the first microreactors will be ready to deployment in the next five years (by 2023).
Erisson in published article where told about advantages of the projectible reactor and disclosed details about the principles of its work. According to him, the microreactor is safer than normal nuclear reactors. For example, unlike the reactor on Fukushima Plant-1, it has more perfect cooling system. Instead of the pumps bringing to the reactor water for cooling in it special thermal tubes which by means of evaporation and condensation effectively take away heat from the reactor are used.
For control of reaction in a fissile region "the systems of passive regulation", instead of graphite midstreams are used. On the Chernobyl NPP rods proved to be not quite successfully, Erisson notes.
He said that the microreactor can issue power in 1 megawatt for ten years. It is enough completely to provide with the electric power from 1500 to 4000 consumers.
Erisson reminded that for this time the Russian power heterogeneous loopback reactor (EGP-6) is considered the most compact reactor. In total such reactors in the Soviet Union it was created four, and all of them are set on the Bilibino NPP. Natural circulation of the heat carrier - saturated steam in channels of a fissile region on thermal neutrons became feature of such reactors. Channels of the reactor are placed in a graphite laying.
According to statements of developers, the Los Alamos microreactor with EGP-6 has nothing in common. Affirms that it is a product of the practices of NASA designed to solve a power supply problem in space. NASA has an experience of creation of nuclear energy in the conditions of limited space. Thermoelectric generators, use heat generated during decomposition reaction for a power supply of the devices "Voyager" and "Galileo".
Erisson noted that NASA studies long ago an opportunity to use uranium-235 for receiving the electric power from self-sustaining chain nuclear reaction which it is possible by smaller efforts, than normal reaction on standard reactors. Uranium-235 should become microreactor "heart" just. The tests which are carried out at the beginning of this year showed that the 6-inch piece of uranium-235 can produce 4 kW of power. For regulation of reaction passive security systems are used.
Closing of the transaction with Brookfield and exit from a bankruptcy status
On August 1, 2018 Westinghouse Electric announced end of earlier announced transaction about the sale to Brookfield Business Partners L.P. company and institutional partners and also about an exit from a stage of reorganization of the company according to Chapter 11 of the Code of the USA about bankruptcy. Announced on January 4, 2018, the deal was closed and became effective on August 1.
The accruing lag from Rosatom and CNNC
The record atomic bargain concluded by China and Russia in June, 2018 became one more blow to the decreasing world influence of America in the field of commercial nuclear power, said in article published on June 27, 2018 by the Journal of Energy Security edition.
As the author of article, the junior researcher of the American council for foreign policy (AFPC) James Grant notes, the reached agreement providing construction costs in the amount of $15 billion (100 billion yuans) will become the largest bilateral transaction in the field of nuclear power. The cost of an initial set of contracts is estimated ranging from $3 billion to $5 billion.
Thanks to cooperation with Russian Rosatom, American Westinghouse and the French Areva, China can brag now of an opportunity to project and build own reactor of third generation — "Hualun-1" — a cheap, but effective alternative to the western competitors. The fact that, despite own potential, the Chinese national nuclear corporation (CNNC) still purchases power units of the Russian design, such as VVER says about much, James Grant writes.
As the analyst notes, Rosatom which already builds more reactors of the last generation worldwide, than all his competitors combined, with pleasure will benefit by the most profitable market for suppliers of nuclear power. Partially, attractiveness of the Russian products is provided at the expense of the packets "all inclusive" offered for new nuclear power stations. Here both financing of construction of the reactor, and training of employees, and operation of objects and use of the fulfilled nuclear fuel enters.
Nevertheless, with China all a little differently, the author of article emphasizes. China intends to develop own nuclear power and the heavy industry. As well as in a case with the VVER previous reactors, the Chinese companies will conduct construction works and will take care of production of all auxiliary components and systems whereas Russians deliver reactors.
Developing countries, such as China and India, actively master nuclear power as a method to meet the growing demand for the electric power and at the same time to increase quality of ecology. Potential of civil nuclear power will only grow in these conditions around the world. At the same time, James Grant considers, the sector of civil nuclear power of the USA is not ready to reap the fruits of it of "the global Renaissance". Except for 2013 when Westinghouse began construction of four AP1000 reactors in the USA along borders of South Carolina and Georgia, the last project of the nuclear reactor in the United States is dated 1977.
To that there are many reasons among which strict requirements in the field of security, lack of political support, growth of production costs, liberalization of domestic market of the electric power and the competition from other power sources — first of all, wind and natural gas. But, perhaps, the most serious obstacle for improving competitiveness of nuclear power of the USA is the actual requirement of that electricity generation received private financing.
So the American atomic companies fell into the least advantageous position in comparison with the state corporations in Russia and China. As such organizations as Rosatom and CNNC, serve the purposes of energy strategies of the governments, they enjoy strong financial and political support irrespective of market conditions, Grant notes.
Rosatom and CNNC have a set of atomic projects worldwide. Russia has agreements with India, Bangladesh, Egypt, Jordan, Finland, Belarus, Hungary and Turkey. In return, China actively works in Algeria, Ghana, Pakistan, Saudi Arabia and in Great Britain. They are the lost opportunities for Westinghouse and other western atomic corporations, the American analyst concluded.
Strike against a visit of the head of the company in India
On February 13, 2018 in India there took place the strike against a visit of the head of Westinghouse Electric. The government of India is going to sign the agreement on construction of six AP1000 nuclear reactors with Westinghouse. Several Indian organizations prepared the petition in which it is said that "the AP1000 project was not tested in practice yet and faced licensing problems, growth of costs and time for construction, and serious questions to its security in the USA, Great Britain, China and other countries". Authors emphasize that "Westinghouse pushes India to acquisition of unchecked nuclear technologies".
The Canadian Brookfield Business redeems the company from Toshiba for $4.6 billion
In January, 2018 the investment corporation Brookfield Business announced acquisition at Toshiba Corp. 100% in Westinghouse company for $4.6 billion. The transaction approximately for $1 billion will be financed at the expense of equity, for $3 billion — due to long-term debt financing. Completion of the transaction is expected in the third quarter 2018 and is subject to court approval on bankruptcies and other regulators.
Brookfield Business was going to expand the presence at the field of nuclear power engineering where her business partners already work. The American administration was afraid earlier that investors from Moscow or Beijing will become interested in acquisition of Westinghouse that will undermine the interests of Washington in the field of nuclear power. U.S. authorities were going to save communication of the company with technologies and national economy. the U.S. President Donald Trump closely contacted to all potential buyers of Westinghouse.
A bit later in the same month it became known that Toshiba Corp. will sell rights to claim on assets of Westinghouse Electric to consortium of investors led by the American hedge fund of Baupost Group and also the stock of the companies connected with Westinghouse to Brookfield investment fund.
As reported in the press release Toshiba, the company will sell rights to claim on assets with a total amount about $8.1 billion for $2.16 billion Toshiba expects to close this deal by the end of January, 2018.
Toshiba redeems 10% of shares of Westinghouse from Kazatomprom
In December, 2017 it was announced that the Toshiba corporation redeemed from the national atomic company (NAC) of Kazakhstan Kazatomprom of 10% of stocks of the subsidiary company Westinghouse Electric according to the term of the contract about the put option, the press service of Kazatomprom reported.
Kazatomprom acquired shares of Westinghouse in 2007 at Toshiba corporation for $540 million. According to terms of the contract about the put option, Kazatomprom had the right to sell the shares back of Toshiba corporation at the fixed cost of $522 million.
"Today Kazatomprom received payment for stocks of Westinghouse in the amount of 522 million dollars by earlier exercised right to the put option", the statement says.
In the press release it is emphasized that taking into account the dividends received for the period holding of shares in the amount of 103 million dollars, Kazatomprom performed return of invested funds in the total amount of 625 million dollars that exceeded the initial stock investment of Westinghouse for 85 million dollars.
The plan of sales increase of fuel elements to Ukraine
Loading of the Ukrainian nuclear power plants TBC-W fuel of the American company Westinghouse caused the serious conflict of Ukraine and the Russian Federation in 2008, and in 2012 the chief state inspector on nuclear and radiation safety of Ukraine Mikhail Gashev reported about a problem in combined use Russian TVEL of TBC-A and fuel element of Vestingauz company: damages of a rim of the distancing grid of two fuel assemblies of TBC-W — they were revealed at a fuel overload on the third block Is southern the Ukrainian nuclear power plant (all was 84 TBC-W on the third power unit and 42 TBC-W on the second there).
The alternative opinion consists that the problem consists not in American, and in the Russian fuel elements of TBC-A: "For the third year they are so deformed that being in their environment more flexible TBC-W are forced to take their form". Afterwards representatives Vestingauz, justifying destruction of the adapted fuel elements in VVER reactors, said that allegedly "the Russian fuel assemblies are guilty of damages — in them there were features of a mechanical property which caused damages of assemblies "Vestingauz'". The corporation made changes to construction of fuel assemblies, and Ukraine continued to buy the productions "Vestingauz" adapted TVEL for the NPPs. These TVEL gather in Sweden Vestingauz company (from partially American components) under control of the American engineers, but from the Ukrainian uranium enriched in Russia (nobody will allow to enrich the Ukrainian uranium to Ukraine "in the light of a perspective of distribution of nuclear weapon").
In the general trend of turning of the relations with Russia in Kiev laid great hopes on the fuel assemblies of TBC-WR manufactured by Westinghouse in Sweden almost experimentally. Attempts of their application on the Zaporizhia NPP several times led to emergency shutdowns as at all efforts it was not succeeded to provide a full compliance to parameters of "original". Besides these fuel elements are more expensive the Russian. Experts expressed doubts that after bankruptcy of Vestingauz these courageous experiences will continue.
For the end of 2017 the Energoatom company managing the Ukrainian nuclear power plants purchases nuclear fuel under contracts from Russian TVEL and Westinghouse Electric Sweden. In January-October, 2017 Ukraine purchased the nuclear fuel (NF) for $381.17 million. For the Ukrainian nuclear power plants fuel of the Russian production (for $244.31 million) and also the Swedish production purchased (for $136.86 million). Thus, Ukraine bought from Russian TVEL of 64.09% of fuel, at Westinghouse is (Sweden) - 35.91%.
On December 21, 2017 it became known that Ukraine intends to increase in 2018 purchases of nuclear fuel at Westinghouse for nuclear power stations from 40% to 55%, the Minister of Energy and Coal Industry of Ukraine Igor Nasalik said.
"If today 60% are delivered by Russians, 40% - Westinghouse, then already literally next year we will leave in a proportion of 55% for 45% for benefit of the American company. And it will allow us not to depend on one supplier", - Nasalik noted.
The head of Westinghouse Electric Company José Emeterio Gutierrez said in an interview to the Interfax Ukraine agency that the company in 2017 will increase deliveries of YaT to Ukrainian Energoatom to six batches. On six loadings a year the company intends to deliver till 2020.
Insolvency proceeding start
In spite of the fact that a half of all power units and the fifth part of the fuel elements (TVEL) is delivered by the company, Westinghouse Electric Company shows unprofitability. On March 27, 2017 it became known that the start will be given on March 31 to insolvency proceeding of Vestingauz company. For the end of 2016 the company had obligations for $9.8 billion and impossibility to execute them due to the lack of contracts.
In 2015 management of Westinghouse affiliated firm made very large mistake, having tempted on acquisition profitable in appearance. For Chicago Brige & Iron & Stone and Webster Inc company. its Texas owners asked absolutely cheap, only $229 million, and it were decided to purchase. In a year in the transaction certain hidden parts were detected. The contract was protested, trials of lawyers continued three years, and the court obliged to pay Toshiba at first to $2 billion, and then $5 billion more to the former owners. The Japanese parent company has capital stock only in $3 billion, and affairs at it go recently not really well.
In March, 2017 the Board of Directors of the Japanese corporation Toshiba approved the decision on submission of the claim request in court of New York according to cases of bankruptcy. She will help to receive protection against creditors, to carry out reorganization and restructuring.
Upon bankruptcy total monetary losses of Westinghouse Electric will be ¥1.01 trillion (~ $9.1 billion). After announcement of the final decision on bankruptcy, the management of Westinghouse made a number of statements according to which Westinghouse received investments in the amount of $800 million, they are enough to start reorganization.
The company management managed to agree with shareholders about continuation of financing of the project on development of the AP1000 nuclear reactor.
As the Japanese firm Toshiba cannot solve financial problems of "subsidiary" of Westinghouse Electric obviously, and so huge credit will not give the company experiencing already financial difficulties too, by itself the decision on liquidation of unprofitable division arises. On the one hand, to sell high-tech production together with the trademark, most known in the world, should not make problems. Buyers can be, but among the countries which theoretically have opportunities to purchase this enterprise, really only the USA, Russia and France can make it. All others accumulated not enough experience in nuclear power engineering to decide on such adventure. But also at such assumption there are many factors almost completely excluding a possibility of this transaction.
The French Vestingauz will not purchase, this company is not necessary to them - at is approximately same. Provide that Russia will get "pride of America" in general it is impossible. This firm concentrated in itself everything that defines energy security of the country. By itself the solution to redeem it again arises. On it big money is necessary by the standards of the budget of the USA not such - this question costs several billions. Only what to do next? To quickly liquidate technology lag from Russia in nuclear area it will hardly turn out, and Trump understands it. And if not, then to it is to whom to explain. However, such solution so well is entered in the scheme proclaimed during the election campaign that it can be considered the most probable option. The South Korean company KEPCO hints at a possibility of purchase of Westinghouse. Restructuring, according to the filed documents, is planned under aegis and with sponsor's participation of South Korean Korea Electric Power Co. (KEPCO).
What means bankruptcy? The legislation of the USA, in particular the Bankruptcy code, allows in the presence of debts to continue economic activity almost in the normal mode. According to Chapter 11, the statement is required to file a lawsuit, and then the subject of managing is protected from any legal acts, adverse for it. It is necessary to attach the plan of reorganization which is subject to the approval by court and most of owners and creditors. Legal and financial opportunities, however, are narrowed.
2016: A failure in development of the power unit on fast neutrons
The hard times which followed the collapse of the USSR, the nuclear industry of Russia managed to worry rather safely thanks to certain specifics of construction of the reactors constructed earlier in the different countries. The matter is that the fuel elements produced in Russia are suitable for the Soviet stations, and it is impossible to replace them American. It can create conditions for accident. At the same time the gained time was not spent in vain, and used for maintaining essentially new projects. The power unit working at fast neutrons was created. Similar in the world yet nobody could make anything anywhere. The company from France is seemingly close to Areva to result, but stir many technical issues, constantly for some reason arising. At Vestingauz of case it is much worse - 8 orders for the latest AR-1000 block, including from the People's Republic of China are typed, but by 2017 nothing already ten years are impossible. And only in Russia the first VVER-1200 reactor on fast neutrons regularly works at the New Voronezh NPP, and start of the second is planned.
2012: Obtaining the license for construction of blocks on AR-1000 to the USA and the invitation of the Chinese specialists
Westinghouse in the 2012th year, after long tortures obtained the license for construction of AR-1000 in the territory of the USA. A number of lead engineers of the company began fight against own administration for that misters-heads … persuaded Chinese to go to the States as there was simply nobody to build, and Chinese already managed to gain experience on AR-1000 construction in China. So having arrived in China in 2009 as teachers, in the 2013th Americans already understood that it is more reasonable to become pupils. The management of Westinghouse, however, did not go for such undermining reputation. As a result the police caught on building sites in the States addicts and alcoholics, the car with the reactor body and so on departed under a slope.
2011: Accident on the NPP in Japan
In 1986 the reputation of the Soviet nuclear physicists was strongly shattered by Chernobyl, and the West got essential competitive advantages which long took. However in 2011 there was other awful accident, in Japan this time, and confidence in technology superiority over Russia became smaller. Reactors for the Fukushima NPP were made by Vestingauz. This incident was tried to be explained with the randomness or miscalculations at design which are not connected directly with "an atomic part" of the station.
2007: A failure of replacement of the Russian elements in the Czech Republic
The attempt of replacement, the second after Finland, Russian led TVEL to damage of constructions of fuel blocks of production "Vestingauz" on the NPP Temelin (Czech Republic) in 2007 (because of deformation of assemblies and their depressurization) also led to a temporary failure from them.
2006: Toshiba redeems Westinghouse for $5.4 billion
In 2006 the controlling stake of Westinghouse for $5.4 billion was purchased by the Japanese corporation Toshiba.
1998: Failure attempt of replacement of the Russian elements in Finland
The first attempt to develop production TVEL for the Russian VVER-440 reactors was made in 1998 when on the Finnish nuclear power plant of Loviis five heat-generating assemblies Vestingauz for trial operation together with set of six Russian were set. Radiation of the heat-generating assemblies was made since 1998 to 2002 then they were unloaded from a fissile region and are subjected to the analysis. Corrosion resistance of cartridges of Westinghouse was much lower (the corrosion layer at the American assemblies made 21 microns, and at the Russian - only 1-4 microns). At the American fuel elements the exit of gaseous fission products twice exceeding this indicator for the Russian products was recorded. As a result Fortum Company (the owner of the Finnish nuclear power plant) came to conclusion that for VVER-440 reactors are more suitable Russian TVEL — Finns refused Vestingauz fuel.
1939: The first robot humanoid
The first robot humanoid was created by Westinghouse company. Elektro reached 2.1 meters, could pronounce more than 700 words (by means of a plate). In the 1960th years the android played a key role in the movie of category B "Sex Kittens Go to College".
The 1920th: Hiring of the Russian inventor Vladimir Zvorykin
From the beginning of Civil war in Russia the talented Russian inventor Vladimir Zvorykin arrived on service to Kolchak's government in Omsk and went across the ocean as the sales agent twice to agree about deliveries of machines and the equipment. Zvorykin reached the USA through Europe, and there — across Irtysh, Ob and the Arctic Ocean. During the second business trip Kolchak's government fell, and Zvorykin on the bird's rights remained in America. It had no money, and in English he knew only one word — Westinghouse. So the company developing radio electronics was called.
Though Zvorykin even plainly could not speak, he was all the same taken in Westinghouse. However, the administration till a time did not see perspectives at ideas of the Russian engineer.
| ||"Apparently, the guy sensible, and fools about. Find for him useful application" — about Zvorykin's work on the television receiver the vice president of the company so told.|| |
Later Zvorykin created key technologies for start of television. Read more here.
1898: Foundation of division in Russia
In 1898 the American entrepreneur founded the joint-stock company in Russia making pneumatic brakes for rail transport.
1886: Foundation of the company
The brand of Westinghouse appeared in 1886 when the industrialist, the entrepreneur, but first of all the inventor George Vestingauz based in Pittsburgh, the State of Pennsylvania, firm, having called it in honor of itself. The mechanic self-educated person was engaged in pneumatics (railway brakes), but soon realized perspectives of use of electrical energy. Nikola Tesla worked as the engineer in Vestingauz's company which was successfully competing with Thomas Edison's enterprise.
- ↑ of Steel organizational measures of Westinghouse after getting out of bankruptcy are known
- ↑ In Westinghouse commented on messages about "the hacker attack"
- ↑ the USA started creation of the nuclear microreactor
- ↑ the American expert: The USA loses because of the atomic transaction of Russia and China much
- ↑ Macron will meet in India by protests
- ↑ of Toshiba will sell rights to claim on assets of Westinghouse that will increase its capital by $3.7 billion
- ↑ Ukraine will increase purchases of fuel at Westinghouse
- ↑ of Toshiba company declared bankruptcy of "daughter" — the main competitor of Rosatom
- ↑ the Atomic company Westinghouse went bankrupt