Key players join forces to secure a brighter future

Date: 25/06/1998

By Chris Johnstone

CONSOLIDATION is the keyword for the world's corporate nuclear powers at the moment as they contemplate a ten-to-15-year fall-off in demand for new plants.

The downturn bestrides the Atlantic, with the US love affair with nuclear shattered by the near-catastrophe on Three Mile Island and subsequent demands for expensive retro-fitting of existing plants. Cartoon character Homer Simpson's star role as a nuclear power station safety official has done nothing to boost the industry's popular or political appeal.

Fusion talk and action has become frenetic in the first half of the year, with the clear likelihood that Europe and the world's nuclear landscape will be significantly altered by the end of 1998.

The latest movements in the courtship between and amongst European and US players involves speculation that British Nuclear Fuels (BNFL) will bid for Westinghouse Electric, one of the US' big three nuclear companies. Ironically, perhaps, owner CBS is looking to concentrate on the entertainments business.

The deal would give BNFL an opening into maintenance and other contracts linked to 150 nuclear power plants - around one-third of the total world-wide.

France's Framatome, like BNFL, has been linked to the purchase but is also making no comment.

In an industry which apparently produces as much rumour as power, Siemens is being tipped as a possible buyer of shares in Framatome, if and when the French government chooses to dilute its 51&percent; indirect and direct stake. “The government has talked about changing ownership but it is not a priority issue,” said a Framatome spokeswoman.

A Siemens stake in Framatome would represent a dramatic turnaround. Siemens launched talks on a joint venture covering its own nuclear business and BNFL's nuclear fuel interests at the start of this year. These were advancing quite well until it was announced that a 'for sale' sign had been put on Westinghouse.