Tognum expands Asian and onsite energy business by way of major order

• Purchase order for the delivery of ten emergency power supply gensets for Chinese nuclear power stations
• Order value for mtu consortium at approx. € 65 million

Friedrichshafen, 19 November 2008. Tognum group is expanding their Asian business in the area of onsite energy generation with a substantial contract: a consortium led by Tognum subsidiary MTU Friedrichshafen GmbH will deliver ten emergency power supply gensets for two Chinese nuclear power stations. The order value is at approximately € 65 million. Consortium partners include the Joint Venture between mtu and the Chinese Norinco Group, Shanxi North MTU Diesel Co. Ltd., and energy generation supplier AREVA NP.
Before this contract was awarded by the Chinese nuclear power plant operator, it was important to ensure the necessary local content: the Joint Venture agreed in December 2007 by mtu and their Chinese partner Norinco Group ensured that mtu complied with this particular prerequisite. The mtu consortium can command a significant share in the highly coveted Chinese market for emergency power supply gensets in nuclear power plants. The Chinese nuclear power station market is buzzing – a considerable number of new plants are scheduled to be built in the near future.
“This contract both serves to expand our onsite energy business, as well as providing a significant contribution to our Asian operations“, explains Volker Heuer, Chairman of the Executive Board and CEO of Tognum AG. “It goes to show that our strategic growth initiatives are paying off.“ Other strategic Tognum group drivers include the expansion of the product portfolio in the area of drive and propulsion systems and the focus on the high-margin After Sales business.
At the core of the mtu Onsite Energy emergency power supply gensets you will find Series 20V956TB33 diesel engines with an electrical power output of 6,000 kW. Upon initiation of the start signal, the gensets run up to their nominal speed within ten seconds, ready to pick up maximum performance. This is how they ensure the power supply for coolant pumps or the electronic control system of the nuclear power plant in a potential emergency scenario.
Within the consortium, mtu is the main contributor to the development and the engineering of the entire emergency power supply system, substantiating mtu’s system competence. A variety of components for the diesel engines and mechanical genset accessories are provided by Chinese suppliers in order to comply with the local content requirements, while other components are manufactured in the mtu plant in Friedrichshafen and by other European suppliers. The gensets will be assembled and tested in the mtu JV’s new factory in Datong, China. The emergency power supply gensets will be delivered from 2011 to 2014.
  
AREVA NP as the Consortium partner in charge of providing the main electrical portions of the scope also contributed to the local content, by cooperating with Chinese generator manufacturer SEMC.   
mtu and AREVA have more than forty years of experience in the design and delivery of gensets for nuclear power stations. Over the last decades, several hundred systems have been delivered to customers in Europe and Asia.