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THE 5 FOREIGN THREATS IN THE TURKISH NUCLEAR MARKET
– Strategies on how to swim with the sharks in the nuclear industry–
Research conducted by :
Nuclear Industry Association of Turkey
Areas covered
• The nuclear power market in Middle East and Africa confirms the limits of the supply chain and and the opportunities for new entrants
• The 5 foreign threats to the Turkish
industry
• 3 Steps to build a solid lobbying group
What’s the business size?
“Construction of nuclear plants creates a range of export opportunities. Depending on the design, a single new reactor requires approximately: • 500 to 3,000 nuclear grade valves, • 125 to 250 pumps, • 70 kilometer of piping, • 483 kilometers of electric wiring, • and 90,000 electrical components.”
Source: Nuclear Energy Institute
What’s the nuclear power energy market size?
0 100 200 300 400 500 600 700 800 900 1000
back end fuel cycle
front end fuel cycle
service
nuclear power plant construction
radiation management
nuclear generation
2030 2011
Estimated size of the global nuclear energy market in 2011 and 2030 (Billion TRY)
The nuclear power market in Middle East and Africa confirms the limits of the supply chain and the
opportunities for new entrants
... BUT Turkish companies are way behind their foreign
competitors
• In 2003, the Science and Technology Upper Council of the Scientific and Technological Research Council of Turkey (TÜBITAK) listed electricity generation through nuclear power plants as the third highest priority of the country.
• In 2016, Turkey will host the world energy congress. The event will bring together more than 10.000 top world leaders in the field of energy, coming from industry, governments, and international organizations
They do not focus on the priority
World Energy Congress, Daegu, South Korea 2013
World Nuclear Exhibition 2014
Power Gen Europe 2015
Atomexpo 2015
Istanbul • SITERM • TEKSAN GENERATOR
Ankara
Bursa • ÇIMTAŞ BORU İMALATLARI VE TİC
Adana
Izmir • ENKO ELECTRONIC CONTROL SYSTEMS
Kocaeli
Gaziantep • ÇİLTUĞ ISISAN.VE TİC.A.Ş
Six years without branding their business
Since the signature of Akkuyu project in 2010, no Turkish Exhibitors were involved in the major exhibitions such as Power Gen International, Nuclear Power Industry China, and World Nuclear Exhibition
Source: Reedexpo,Pennwell, Atomexpo
They do not manage their online reputation
Source Mavinci A.S., Dynatom International
66%
39%
26%
12%
0% 10% 20% 30% 40% 50% 60% 70%
US
France
Russia
Japan
Website reference on Google On 188 Turkish companies willing to get involved in the clusters: • 76% have an English website • 64% are on Facebook • 52% have a LinkedIn account • 37% have a Newsletter • 34% communicate via Twitter
There are three areas under the umbrella of social tech: social relevancy, social media, and social networking. You need to understand the difference among these.
Source: Manager’s Guide to Social Media
“Social Tech isn’t a fad: it’s a powerful trend. Don’t wait a moment longer to get in Front of it. The desire to have new ways to communicate and less expensive ways to transmit information globally are driving adoption.” Scott Klososky
They do not expand overseas
Source: Mavinci, Dynatom International
Website reference on Google
There is no significant representation in the following markets: Armenia, Australia, Belarus, Belgium, Brazil, Canada, Czech Republic, Denmark, Japan, Kyrgyzstan, Lithuania Mongolia, Namibia, Slovakia and Slovenia.
Africa 4%
Latin America 4%
North America
6% Central Asia 7%
Asia 13%
Russia 14%
Middle East 17%
Europe 35%
The 188 candidates to the clusters are represented in 30 Key markets related to nuclear. But the reality shows a ratio of 1.25% of overseas presence (through agent, office, factory).
They do not invest in nuclear standards
Source: Mavinci, Dynatom International
Most of companies follow ISO 9001, but a few invest in the certification for nuclear safety equipment. There is no evidence of companies certified RCC-M, RCC-E, JSME and IEEE
0 20 40 60 80 100 120
ASME N
ASME S
ASME U
GOST R
ISO14001
ISO 9001
And yet…
• 58 new reactors forecasted in the Middle East and Africa Continent until 2030 and more until 2040
Sources: IAEA, World Nuclear, IEA, OCDE,
Middle East and Africa are the new markets
The continent is a magnet for Nuclear Tech countries
The industry must comprehend the complexity of its domestic nuclear power market
These eight forces in the Turkish market represent barriers and opportunities, depending how the nuclear cluster is prepared to face the (domestic and foreign) competition and market needs. Each force must be matched, for example by an adjustment from the cluster, or a focal point on one segment of the market, such as the GOST standard for Akkuyu project, focus in safety level 3 equipment, regional domination with an international partner, or lobbying inside the government. These forces represents the needs that Turkey will have to fulfill with partners from Europe (including Russia), China, Japan, USA and Canada.
The Five Foreign Threats to the Turkish Industry
1. Lack of Skills
2. Structured foreign supply chain and expertise
3. Foreign investment = NO control
4. Strong willpower from foreign government
5. Uncontrolled (foreign) service suppliers
The lack of an experienced human resources
Akkuyu project in Turkey includes 4 units AES-2006 for an investment between 54-58 Billion TRY. When the Turkish parliament voted the construction of nuclear power plants, any investor had the duty to localize 60% of the project. Grigory Kazakov, CEO of Akkuyu Nuclear indicated during his presentation at Atomexpo 2015 that 90% of the plant equipment will be manufactured in Russia and equipment account for half of all outlays.
COMPANY UNIVERSITY
BAŞOĞLU KABLO VE PROFİL SANAYİ VE TİC. AŞ Yıldız Teknik Üniversitesi
GEDIK DÖKÜM Gedik University
BOMAK Cukurova University
ASELSAN Gazi Universiy, Uludağ University
STC METU, Bilkent University, Yıldırım Beyazıt University, International Antakya University
MAVİNCİ Hacettepe University, Gebze University
MATRIKS ENERJI İstanbul Teknik Üniversitesi
STM Bilkent University
SFS İstanbul Teknik Üniversitesi
“The main challenge in developing nuclear power in the Middle East will be in setting up the needed nuclear infrastructure and training, as well as the education of a highly skilled nuclear work force”. Source: IEA “Regional perspectives for nuclear energy” 2015
The foreign expertise is structured and over confident
0 500 1000 1500 2000 2500 3000 3500 4000
SNGC (Spain)
BNF (Belgium)
Airto (UK)
OEKTG (Austria)
ENEN (Europe)
Bulatom (Bulgaria)
ENS (Europe)
PFCE (France)
CNA (Canada)
BNS (Belgium)
NIAUK (UK)
GIIN (France)
JAIF (Japan)
SNF (Switzerland)
FNS (Finland)
EPRI (USA)
The Nuclear Institute (UK)
ANS (USA)
PNS (Pakistan)
KTG (Germany)
SFEN (France)
The lack of investment means no certainty
Rosatom’s appealing business model may have long-term impacts on the energy security of Turkey. Relying upon Rosatom officials to own and operate nuclear power plants could ultimately Turkey’s capacity to ensure and enforce the highest standards of nuclear safety. While countries with little expertise in nuclear power may be drawn to outsourcing the plant’s operation under the BOO model, the model can also leave local partners reliant on the personnel and expertise of the Russian company. In Turkey, the BOO model cannot be safely implemented unless local partners are trained as well, something that is not built into the “one-stop-shop” model. As such, Rosatom’s BOO model, while convenient, risks leaving Turkey ill-equipped to provide effective and appropriate oversight.
Source: Emma Lecavalier, Bulletin of the Atomic Scientist, 16 October 2015
A strong willpower from foreign governments
Chinese leaders base future economic growth on innovation to become a global supplier of high-tech commodities “created in China.” The objective is to seize strategic industries and their global markets. The “One Belt, One Road” strategy is intended to shape global economic integration and trade by Chinese terms, advancing nuclear technology as one of China’s new high-tech export brands, as railways before.
Source: Jost Wübbeke and Guan Ting, The Diplomat, 11 February 2016
Too many foreign service suppliers
Source: American Nuclear Society Buyer Guide 2015
ALREADY 230 MULTINATIONALS OFFER 57 VARIOUS TRAINING SERVICE AT Air Treatment AC Auditing, Codes & Standards AE Auditing, Environmental CH Chemistry C Communications CP Computer Users/Computer Personnel CM Construction Management Personnel CS Crane & Rigging Safety EP Emergency Planning & Response EM Engineering Management EE Engineers, Electrical ME Engineers, Mechanical ES Engineers, Structural EL Environmental Laws & Regulation EQ Equipment Qualification FP Fire Protection FD Fitness-for-Duty,
Behavioral Observation FC Fuel Cycle/Performance Analysis FT Fuel Transport/Storage HV HVAC Maintenance I Instructors, Classroom & Simulator LD Leadership Development L Licensing M Maintenance MN Management NT Nondestructive Testing NO Nuclear Power Plant Operations Personnel OE Organizational Effectiveness OS OSHA Compliance P Plant Commissioning PC Process Control Statistical PM Project Management QA Quality Assurance/Quality Control RM Radiation Management (ALARA) RP Radiation Protection
RC Radiochemistry RA Reliability Analysis RR Research Reactor Utilization & Maintenance RS Respiratory Protection RT Root Cause Analysis SE Safety Evaluation S Scaffolding SP Security Personnel SQ Seismic Qualification SI Simulator, Power Plant & Reactor SR Simulators, Radiation SM Snubber Maintenance & Overhaul TB Team Building TE Technicians, Electrical TI Technicians, Instrumentation and Control TL Technicians, Laboratory TM Technicians, Mechanical TS Technicians, Security WM Waste Management WC Water Chemistry
What is the real cost of nuclear?
China Statistical Yearbook, 2013 Complied by National Bureau of Statistics of China
What would you pay to: • Determine the right strategy • Find trusted partners and suppliers • Hire the local stars • Invest in all training required • Understand codes and standards • Create a dedicated marketing team • Exchange information with your peers • Monitor the competition • Promote your company overseas • Brand your business • Lobby your government
The 3 Steps to build a solid lobbying group
1. Commit to the global strategy of Turkey
2. Create your nuclear cluster
3. Join the Nuclear Industry Association of Turkey
Commit to the Global Strategy of Turkey
In February 2016, The Government started a prospection in Africa to increase Turkey’s “strategic partnership with Africa and developing relations with members of the Economic Community of West African States (ECOWAS). This trip followed the visit of Ethiopia, Djibouti and Somalia in 2015. Turkey has more than tripled the number of embassies it has in Africa since 2009, while national flag carrier Turkish Airlines has dozens of destinations on the continent. Bilateral trade between Turkey and all of Africa was worth $23.4 billion in 2014, while bilateral trade with sub-Saharan countries has increased tenfold since 2000, according to the Foreign Ministry.
Source: Hurryet Daily News, February 2015
0
5
10
15
20
25
30
Turkish Airlines Emirates Qatar Airways Etihad
Africa Middle East
TurkishAirlines32%
Emirates26%
QatarAirways22%
Etihad20%
Presence of the main regional Airlines in Middles East and Africa
Market presence between the four main airlines in Middle East and Africa
Create the nuclear cluster in your city
• Ankara Chamber of Industry created its cluster in 2015
• Istanbul Chamber of Industry followed in 2016
• Adana and Tekirdağ just started to expand their network
• Most of the industry is located in the following cities: Bursa, Corum, Eskişehir, Gaziantep, İzmir , Kahramanmaraş, Kayseri, Kocaeli, Konya, Malatya, Mersin, Sakarya, Samsun, Sanliurfa and Sinop.
Since its creation, the PNB gathers 160 entities. More than 3 000 jobs were created in Burgundy and investments of above 700 Million Euros. Nuclear represents 12,000 jobs in the region. Pole Nucléaire Bourgogne
SNGC is a consortium of ENSA, ENUSA, RINGO and TECNATOM in order to coordinate, increase and promote these companies operations in the marketing sector of goods and services. http://www.sngc.es/en/about-us/
Join the Turkish Nuclear Industry Association (NIATR)
Created in 2015, supported by the government and the industry
• Set up by business owners, with a dynamic international mindset
• Focused in the foundation of a solid workforce for domestic and regional nuclear projects.
• Open to any company and individuals Represented in Europe, North America and Asia
• International business development in Switzerland, a traditional ally of Turkey.
• Representative in Chicago, the cradle of the nuclear industry.
• Delegate in Beijing to supervise the relations with the Chinese SOE.
Most ambitious commercial program
• To become the industrial think tank of the government for nuclear.
• Expansion plans in Africa and ME • Open to foreign partners
China Statistical Yearbook, 2013 Complied by National Bureau of Statistics of China
Source: NIAUK, Bulatom
Hire Local Stars
• Agreement with local universities to start early training of talents
• Cooperation with foreign universities and technical school for easy transfer of know how
• National HR listing
Introduction to Trusted Partners
China Statistical Yearbook, 2013 Complied by National Bureau of Statistics of China
• Our B2B matchmaking program monitors 1400 of foreign companies, met face to face
• Quick check out for our members of the reliability and references of their partner
• Strategic advice on market
and partnership
Training and Workshops
China Statistical Yearbook, 2013 Complied by National Bureau of Statistics of China
• We select the trainings for all members and selected segments
• We advise you on which training you can, you should, or must follow
• We list the local and foreign
suppliers that are recognized for their cost-savvy service and results
Dedicated Marketing Team
China Statistical Yearbook, 2013 Complied by National Bureau of Statistics of China
• Our marketing team based in 4 continents monitors business news.
• Mobile application with news in Turkish and English (Android and IOS)
• Digital magazine sent every
two months with technical and marketing information.
We Brand your Business
China Statistical Yearbook, 2013 Complied by National Bureau of Statistics of China
• Use our marketing platform to promote your company
• Participation to INPPS in Turkey
• Involvement in overseas
exhibitions under NIATR pavilion
Factory visit
China Statistical Yearbook, 2013 Complied by National Bureau of Statistics of China
• Other way to promote your achievements
• Benchmark your capabilities and visit local and foreign competitors
• Assess the feedback from
the buyers
Meetings with the Authorities
China Statistical Yearbook, 2013 Complied by National Bureau of Statistics of China
• Regular meetings with regional and national stakeholders of the projects
• Meeting with the Ministry, Safety Authority, to get and provide feedback of the market and needs
• Strategic meeting with the Ministry of Energy ( see membership type)
Prospect in foreign markets with experts
China Statistical Yearbook, 2013 Complied by National Bureau of Statistics of China
• Explore sensitive markets at low risk
• Use foreign members • Avoid costly business
prospection
• Optimize your existing commercial network
Participate to domestic tenders
China Statistical Yearbook, 2013 Complied by National Bureau of Statistics of China
• NIATR participates to UR-GE tenders
• Consolidation of talents • Increase your market share
in nuclear business
• Involve in international tenders
Visit of Nuclear Power Projects and Plants
China Statistical Yearbook, 2013 Complied by National Bureau of Statistics of China
• Visits of Turkish projects
• Visits of operating nuclear power plants
Ongoing Business
In 2015, the NIATR signed cooperation agreement with:
• GIIN (France) • NIAUK (United Kingdom)
In the first quarter of 2016, the NIATR increased its development with new cooperation agreements:
• OCI (Canada) • Bulatom (Bulgaria) • CNS (Czech Republic) • Agoria (Belgium) • US NIC (USA)
Still during the first quarter of 2016, the NIATR will sign more cooperation agreements:
• SGNC (Spain) • AREN (Romania) • NSS (Slovenia)
2016 is the year of global expansion with planned meetings in Jordan, Egypt and Ghana
Next Step
Any industrialized country that uses nuclear power controls 90% of the supply chain. China, India, the Middle East, Asia Minor, Africa and Latin America are no exceptions to this rule, it is just a question of timing. Your role is to act in the global market and to anticipate new challenges rather than wait for orders and control the damage from your competitors.
Join the NIATR Sağlık Sokak No:21 Yenişehir
Ankara Ph: +90 (312) 219 75 46
http://www.niatr.org