A Doosan Babcock Perspective - AP1000

1
Westinghouse AP1000
UK Equipment Supplier
Launch

Doosan Babcock Energy Limited
Westinghouse AP1000
Equipment Suppliers Event
9 th October 2008

Part of the Family - Our Parent
Part of Doosan Heavy Industries & Construction (DHI&C)
� Doosan Heavy Industries & Construction is part of Doosan Group - the oldest
and
one of the most successful conglomerates in Korea
� Doosan Group is active in engineering and manufacturing of power plants,
industrial facilities, desalination, engines, construction and construction
equipment

D H I & C Manufacturing Capacities for Power Plants
HRSG
Generator
Turbine
Boiler
5,800 MW/Year
Thermal : 8 x 500 MW,
Nuclear : 1.5 x 1,000 MW,
Hydro : 1 x 300 MW
4,000 MW/Year
(8 x 500MW)
8,300 MW/Year
Nuclear : 1 Unit
Thermal : 14 Units,
Hydro : 1 Unit
11,220 MW/Year
(66 x 170MW)
Nuclear Expanding to 5,000 MW/year

Doosan Babcock Energy Ltd
Doosan Babcock, Renfrew, Scotland
– Headquarters in UK
– FY 2007 annual turnover ~ £500m
(US$1000m approx)
– Employees 5300 worldwide
– An international boiler OEM
– Strong aftermarket service
business in nuclear and thermal
power sectors
– Number one M & E contractor in
the UK power sector
– Major EPC contractor at
Sellafield, building new nuclear
facilities

Doosan Babcock Resources
• Total number of employees increased from 4000 to 5300 in last 2 years
• 3000 are NUCLEAR Suitably Qualified and Experienced Personnel (SQEP)
• 3500 active in nuclear and thermal power stations
• Recruitment Programme
– 75 graduates in 2008 (50 in 2007) plus future planned increase
– 70 trade apprentices in 2008 (50 in 2007) plus future planned increase
– Ex Armed Forces recruitment policy
– Overseas recruitment of design and project engineers to work in UK
• Training Programme
– 60% of staff undergo personal training, external and internal
– 1% of revenue budget spent on training
– Largest welder training school in UK, 500 welders trained per year

Historical Nuclear OEM Capability
1952 Calderhall Fabricate and Installation
1990 Sizewell B Design Fabricate and Install
2007 Residue Export Facility at Sellafield

Nuclear Services across BE Fleet
Fleet wide Mechanical and Technology
Services Contract across seven AGR
stations.
Seven year agreement from April 2007
Anticipated value £550m
Sizewell B
• Provision of Design, Manufacture,
Outage and Maintenance services
• Re-fuelling Outages 2002 – 2008

Sizewell “B” Steam Generator & Primary Loop Pipework
Manufacture for Westinghouse

Module Manufacture, Renfrew

Inspection and Inspection Validation
• In Manufacture Automatic Inspection (IMAI)
Pre Service Inspection (PSI)
In Service Inspection (ISI)
– Development of advanced technologies
– Application to own manufacture
– Application to third parties’ manufacture
• Independent Third Party Inspection
– Development of inspection philosophies
– Validation of techniques, procedures, personnel
– Application of independent inspections

Doosan Babcock relationships with Westinghouse
• 1983 to 1994 discussions and contracts for UK’s Sizewell B PWR
– Manufacturing licensee for WEC Model F steam generators
• 2000 to 2004 when WEC owned by BNFL - WEC managed projects:-
– Alliance with BNFL Magnox for supply of engineering and site implementation
to Magnox fleet
– Alliance with BNFL Sellafield for supply, installation & commissioning of
Residue Export facility
• 2007 to 2008 - Bid partner with WEC for Sizewell B refuelling outages
• 2005 onward - Discussion & lobbying to promote UK nuclear new build
• October 2007 - Confidentiality Agreement between WEC and Doosan
Babcock
• September 2008 - Quality Audit successfully completed
• September 2008 - MoU between WEC & Doosan Babcock on new build

Doosan Babcock relationships in UK power industry
• Acknowledged by Government, Utilities and Contractors as UK Number 1
Mechanical Contactor and boiler plant OEM
• Strategic Long Term Partnerships
– British Energy for fleet wide engineering and site implementation of R&M, life
extensions and upgrades
– RWE technology, engineering, site implementation support for over 10 years
– Energy Solutions (BNFL Magnox) engineering and site implementation till end of
life
• Significant involvement with E.On, EdF, Scottish & Southern Energy, Iberdrola :-
– R&M
– Plant Upgrades
– Front End Engineering Design studies
• Board Members of
– National Skills Academy Nuclear
– Engineering Industry Contractors Training Board

Doosan Babcock Procurement / Supply Chain Management
Local and Global offices with single company approach …
• Procurement /Supply Chain activities
– Purchasing - Tactical & strategic purchase order placement & sourcing of suppliers
– Expediting - Supplier performance in meeting deliverables/order dates
– Shipping - Shipping materials & equipment from fabrication / manufacture to jobsite
– Sub Contracts Management - Administration & management of subcontracts for EPC project
delivery
• Locations - same approach, same structure and same procedures
–UK, Renfrew and Crawley (plus overseas offices)
• Key drivers
– Assurance of reliable, multi-source suppliers
– Correct quality of procured materials/equipment/services
– Shortest, reliable lead time for delivery
– Minimal execution cost and risk
– Subcontractors with capabilities to execute work

In Conclusion
Doosan Babcock
• well connected to all the power utilities in the UK
• strong nuclear pedigree in manufacture, site installation and
commissioning
• major UK employer of site installation and power plant service personnel
• many successful experiences of working in alliances, as leader or member
• well connected into UK supply chain
• preparing for major involvement in UK nuclear new build programme