SUPPLY CHAIN | BUILDING RESILIENCE
Plotting a path to supply chain resilience
Growing concerns that a lack of supply chain resilience could curtail plans for nuclear new build is prompting action from multiple stakeholders, but the complexity of the global nuclear sector is such that no single solution could ever work
SUSTAINING SUPPLY CHAINS FOR A business that is characterised by strong safety regulation, very long lead times and dramatic fluctuations in cycles of activity is an issue for some countries. For the nuclear sector this is particularly the case for key components like large forgings and castings but also smaller, level three supply chain items like switches and valves. The nuclear sector also has unique features such as strong quality assurance requirements, and corresponding materials certification requirements. Almost by definition, the supply chain is most robust in those countries that also have a significant live nuclear fleet based on incumbent nuclear designs like the US, France, Russia, South Korea and China. This is reinforced where that is in combination with new build plans as well as government policy that drives and supports the industry. “When we talk about the supply chain, that means
countries like China, Korea or the US have to a lesser extent challenges, while European countries like Switzerland, Sweden and even the UK, do have their challenges,” Michael Kruse, Managing Partner and Global Leader Energy in the Utilities Practice of Arthur D. Little Schweiz AG, tells NEI. There are also spill over effects, especially across the
second and third tier suppliers of specialised components and equipment that they are delivering into the supply
chain. “The reason is that when there is not a repetitive business, then the capabilities of companies will shrink and diminish,” says Kruse. However, while the industry – bar a few hotspots here and there – has largely been in a position of managed decline for decades that landscape has radically changed in the last few years and supply chain challenges must now be addressed if the sector is to meet new and reinvigorated market demands. “There is no global answer to address all these
challenges and businesses need to think on a more regional perspective,” says Kruse, adding: “It is a significant issue in Western Europe, as well as to an increasing extent in Eastern Europe, especially at those plants that are operating Russian technology, because this will also lead to increasing supply chain issues due to the geopolitical situation. The most severe supply chain issues are related to Europe and possibly countries that are closely tied to European technology, like South Africa. Conversely, in countries like the US, China and Japan there is a strong and large nuclear fleet and a domestic market in general. Supply chains don’t just concern physical components though. Another critical element for the nuclear sector concerns the skilled and experienced people that are needed for development to take place. While there are
Above: Indian Point. The US has a more robust supply chain as it has a substantial nuclear fleet 28 | April 2023 |
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