GEWatcher 10- Losing the Nuclear Power Race?
It is clear that one of the most significant ways that the United States and rest of the world will become more petroleum independent is by adding nuclear reactors.
Unfortunately, for GE it appears that Toshiba, who purchased the Westinghouse Nuclear business from British Nuclear Fuels in the fall of 2006 for $4.2 billion", appears to be in the leadership position.
The Wall Street Journal's April 4, 2008 edition reported: " that Toshiba will build four nuclear power plants in the US valued at a combined 1.4 trillion yen". "Since moving under Toshiba's umbrella, the U.S. company has received a total of a trillion yen in orders to build nuclear plants in China."
Nuclear is a key part of the United States energy policy and it is anticipated that there will be 30 new reactors planned over the next 20 years.
In my book: "The Secret to GE's Success" (pages 236- 237), I pointed out the GE lost the deal to purchase the Westinghouse PWR technology, which accounts for over 75% of the total global nuclear plants installed, because it refused to raise it bid and allowed Toshiba to win the prized Westinghouse nuclear business. I asserted that this was a mistake and that it was unclear whether the GE Hitachi combination would be successful in winning its fair share of the nuclear orders worldwide. So far, it appears that my prognosis was correct and that Toshiba is winning the order race.
In my book, I also point out that a successful nuclear strategy requires solving the nuclear waste problems and standardizing the type of reactors used in the United States. Both Japan and France have elected to use nuclear as a means of solving their energy problems, but they also have a complete system and standardized units. The United States does not.
Another surprise is that GE has not done better in China, where it has made significant investments in the Olympics, opening plants and offices and even moved one of its Research centers to Dalian. It appears to me that GE should have been able to get at least some of the nuclear orders in China.
Bill Rothschild, author of "The Secret to GE's Success" and CEO of Rothschild Strategies Unlimited, LLC (specialists in helping management teams improve their strategic thinking, decision making and execution.)
Unfortunately, for GE it appears that Toshiba, who purchased the Westinghouse Nuclear business from British Nuclear Fuels in the fall of 2006 for $4.2 billion", appears to be in the leadership position.
The Wall Street Journal's April 4, 2008 edition reported: " that Toshiba will build four nuclear power plants in the US valued at a combined 1.4 trillion yen". "Since moving under Toshiba's umbrella, the U.S. company has received a total of a trillion yen in orders to build nuclear plants in China."
Nuclear is a key part of the United States energy policy and it is anticipated that there will be 30 new reactors planned over the next 20 years.
In my book: "The Secret to GE's Success" (pages 236- 237), I pointed out the GE lost the deal to purchase the Westinghouse PWR technology, which accounts for over 75% of the total global nuclear plants installed, because it refused to raise it bid and allowed Toshiba to win the prized Westinghouse nuclear business. I asserted that this was a mistake and that it was unclear whether the GE Hitachi combination would be successful in winning its fair share of the nuclear orders worldwide. So far, it appears that my prognosis was correct and that Toshiba is winning the order race.
In my book, I also point out that a successful nuclear strategy requires solving the nuclear waste problems and standardizing the type of reactors used in the United States. Both Japan and France have elected to use nuclear as a means of solving their energy problems, but they also have a complete system and standardized units. The United States does not.
Another surprise is that GE has not done better in China, where it has made significant investments in the Olympics, opening plants and offices and even moved one of its Research centers to Dalian. It appears to me that GE should have been able to get at least some of the nuclear orders in China.
Bill Rothschild, author of "The Secret to GE's Success" and CEO of Rothschild Strategies Unlimited, LLC (specialists in helping management teams improve their strategic thinking, decision making and execution.)
posted by TheStrategist @ 6:35 AM
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