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China to Buy Nuclear Plants from Westinghouse

The American Company, Westinghouse has won the tender to construct a number of nuclear plants in China, after a two year battle with major international opponents, including France`s Areva and Russia`s Atomstroiexport. The deal is expected to warm relations between two if the world`s biggest energy consumers, as well as, improving China`s stance in the global migration towards the use of nuclear energy. Analysts estimate the deal is worth about $8 billion. Stephen Tritch, president and CEO of Westinghouse said he hopes the plants will be up and running by 2013.

"China has agreed to purchase four new nuclear reactors for the US company," said Samuel W. Bodman, US Energy Secretary, "This represents a multi-billion dollar commitment by the Chinese that should create some 5,500 jobs in the United States." Westinghouse is originally a Pittsburg based company but is now owned by the Japanese company Toshiba. The company has been trying to secure contracts to construct third-generation nuclear reactors in China, since 2004.

China said that the decision to go with Westinghouse was due to the company`s promise to transfer technologies to China, as well as, self support and localization of nuclear technologies. Because of Toshiba`s involvement the deal may improve the relations between China and Japan, which have reached a low point this year. China is the world`s second largest energy consumer in the world after the United States. Today, China manufactures only 2.3% of its energy from nuclear reactors, as opposed to 75% in France and 25% in Japan. Beijing plans to invest about $50 billion in the construction of 30 new nuclear reactors by the year 2020. China currently has 9 active reactors producing energy.