Manufactured Capital
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Manufactured Capital

Stable long-term relations with the end-product consumers allow development of long-term production and scientific plans, leading to reliable provision of subsidiaries and research establishments of TVEL Fuel Company with the orders..

BUSINESS ASSETS AND OPERATIONAL RESULTS

TVEL Fuel Company comprises three complexes for type-specific production of the front end nuclear fuel cycle, and scientific and design-engineering assets.

The plans on production and sales of products and services in the reporting year were fulfilled to the full extent, which ensured compliance with all contractual commitments of the Company to Russian and foreign customers.

Stable long-term relations with the end-product consumers allow development of long-term production and scientific plans, leading to reliable provision of subsidiaries and research establishments of TVEL Fuel Company with the orders.

Competencies of enterprises of TVEL Fuel Company

Separation-Sublimation Complex (SSC) comprises a group of integrated plants engaged in enrichment and conversion of uranium.

In 2016 the plan of SSC enterprises on EUP production and achievement of the installed capacity utilization factor was accomplished to the full extent.

Labor efficiency dynamics of the separation and sublimation complex, RUB mln/person

Subsidiary companies 2014 2015 2016 2016/2015, %
SGChE JSC 3,41 3,88 4,73 21,9
AECC JSC 3,52 4,54 5,90 29,9
PA ECP JSC 5,52 5,77 6,78 17,5
UEIP JSC 7,78 9,40 10,49 11,5

Milestones 2016:

  • implementation of the procedure for the “pooled” transfer of uranium raw materials with the view to reduce unfinished production and to minimize the time of process between TVEL JSC and TENEX JSC, as well as TVEL JSC and UEIP JSC and PA ECP JSC;
  • start of removal of the depleted uranium hexafluoride from the site of AECC JSC, and its reprocessing to refined uranium oxide by PA ECP JSC;
  • production of uranium tetrafluoride by ChMP JSC was terminated starting from April 1, 2016; conversion program was transferred to SGChE JSC;
  • UEIP JSC commissioned the center for integrated servicing of foreign design containers (30B, 48Y);
  • start of reprocessing of depleted uranium in ChMP JSC and its removal from the site of the enterprise; test reprocessing (elaboration of technology) of the first batch of materials from ChMP JSC at SGChE JSC;
  • commissioning at UEIP JSC of gas centrifuges of new generation;
  • completion of works on refining concentration in unit 206 of the radiochemical plant SGChe JSC;
  • start of pilot production of the first module of refining gas centrifuges OGC-200 in the chemical workshop of PA ECP JSC.

Main objectives 2017 and in the midterm:

  • further modernization of UEIP JSC;
  • improvement of conversion cycle efficiency.

In accordance with the decision of ROSATOM, the scheduled shutdown of Chemical-Metallurgical Plant is planned in January 2017, with subsequent decommissioning and transition to sitebased management.

Part of personnel of Chemical- Metallurgical Plant will be engaged in execution of works on production transition to nuclear-safe state. Number of employees will be determined in accordance with the scope of relevant tasks and subject to unconditional compliance with safety requirements and conditions stipulated by licenses.

In Q4 2017 it is planned to transfer the remaining part of the discharged personnel of the Chemical-Metallurgical Plant, who have expertise in work with highly-enriched uranium, plutonium, recycled derivative products and intense radiation waste, to the Experimental Demonstration Energy Complex established at SGChE (for detailed information please refer to the Section “Intellectual Capital”).

Center for Integrated Servicing

The first Russian Center for Integrated Servicing of foreign transport and storage containers used for transportation of enriched uranium products was opened at the Urals Integrated Electrochemical Plant.

A container intended for transportation of uranium product has established service life. To get new certificate in accordance with international requirements, every five years one should carry out recertification, tests, cleaning. Not so long ago, the foreign partners could get such services only abroad.

Center for Integrated Servicing has become the first Russian international certification Center capable of rendering the whole complex of services for processing the containers — from cleaning to pneumatic testing and non-destructive inspection. This will allow reducing the costs, and increasing in future the efficiency of logistical processes due to rendering of the services at the international market.

The Center complies with the standard ANSI No.14.1, regulating activity of such structures; it is equipped with the state of the art Russian facilities, mostly made by the enterprises of ROSATOM under the special project. Personnel of the Center is formed out of the workers of UEIP JSC, who received training and got international certificates.

UEIP JSC was not a random choice as the base for the Center for Integrated Servicing: the plant provides execution of more than 80% of export orders on uranium enrichment, placed in Russia. Geographic proximity to North-Western region, through which UEIP JSC forwards the major part of its product, also matters.

Nuclear Fuel Fabrication Complex (NFFC)

is a group of subsidiary industrial enterprises that manufacture nuclear fuel for various reactors.

The main activity of TVEL Fuel Company is production and sales of fuel assemblies for power and research reactors.

In 2016 the plan of TVEL Fuel Company on nuclear fuel production was accomplished to the full extent, production capacities on nuclear fuel fabrication made 1,750 t of heavy metal.

Production volume of the fabrication complex enterprises, ea

Product 2014 2015 2016 2017(plan)
FA VVER-1000 1,174 1,343 1,269 1,551
FA VVER-1200 165 _ _ 232
FA VVER-440 1,487 1,756 1,846 1,470
FA RBMK-1000 3,221 3,220 3,290 3,490
FA FN-600, FN-800 291 286 406 404
FA EGR-6 144 144 144 144
FA PWR and other 352 104 32 40
TOTAL FA 6,834 6,949 7,050 7,344
Uranium metal ingots, kg U _ _ 335 325
Ceramic fuel pellets, t U 1,508 1,605 1,400 1,420

The planned volume of the manufactured fuel products is determined in accordance with preliminary orders made by consumers based on the plans of primary charging and recharging.

Labor efficiency dynamics of the fabrication complex, RUB mln/person

Subsidiary companies 2014 2015 2016 2016/2015
MSZ JSC 4,49 5,20 5,46 5,0%
NCCP JSC 3,18 4,83 4,92 1,9%
ChMP JSC 3,34 4,02 4,58 13,7%
MZP JSC 3,21 1,56 0,97 -38,0%

Growth of labor efficiency at MSZ JSC, NCCP JSC and ChMP JSC is stipulated by:

  • increase of revenue from conventional products and general industrial activities;
  • reduction of headcount due to implementation of the program of man-loading increase, optimization of production and supporting processes;
  • rebalancing of personnel, including due to optimization of the number of sites without additional staff recruitment.

Milestones 2016:

  • under the international agreements for reduction of stocks of nuclear materials in Islamic Republic of Iran: execution of contracts for exportation of Iranian enriched nuclear materials and heavy water, and equivalent supply of natural uranium in Iran;
  • first batch of nuclear materials was removed from the site of VNIINM JSC as the part of work for removal of nuclear materials from the site;
  • on-time production and supply of highly-enriched uranium metal for European research reactor;
  • first commercial supply of five FAs P-20 for research reactor HFR (the Netherlands);
  • production and supply of VVER-1000 FA with experimental uranium plutonium REMIX-fuel to Balakovo NPP Unit 3;
  • under the conditions of unstable payments in 2016, provision of on-time supply of nuclear fuel for NPP in Ukraine;
  • production and shipment of priming fuel set for Unit 3 of Tianwan NPP (China);
  • under conditions of scheduling constraints, repacking into the certified shipping packaging sets and shipment of 5 NF reload sets for Kudankulam NPP (India);
  • completion of works in MSZ JSC on stage-by-stage introduction and adoption of equipment and “dry” process of fuel pellets production out of uranium dioxide;
  • MSZ JSC completed modernization of TVS production for EGR-6 reactor, established and commissioned new TVS assembly section, started routine production;
  • using the facilities of newly established section there was produced and accepted the pilot FA batch for spacebased gas-cooled nuclear reactor. The adopted process provides a pathway to production of new types of products, having no analogues in the world practice.

Main objectives 2017 of the Nuclear Fuel Fabrication Complex of TVEL FC:

  • production of 3 startup zones of initial fuel charge for unit 4 of Rostov NPP, unit 1 of Belorusian NPP, and unit 4 of Tianwan NPP (China);
  • production, acceptance and supply to Beloyarsk NPP of the first reload of MOX-TVS;
  • development of bimetal tube stocks production technology, and preparation to qualification as the suppliers of these products to foreign markets;
  • production of plant equipment for zirconium chloride and hafnium separation under the project “Creation of chloride technology” of metal zirconium sponge production.

Centrifuge Complex (GCC)

the complex produces gas centrifuges (GC) and accessories for enterprises of the Separation-Sublimation Complex.

ЕThe only consumers of the products of the Gas Centrifuge Complex are companies of the separation and sublimation complex.

GCC fulfilled the production program for manufacturing and supply of gas centrifuges in full and within the time frame

Labor efficiency dynamics of the Gas Centrifuge Complex, RUB mln/person

Subsidiary companies 2014 2015 2016 2016/2015
KMZ JSC 2,42 2,33 2,58 10,7%
+10,7%
increase in labor efficiency of Gas Centrifuge Complex in 2016

Milestones 2016:

  • the acceptance board of TVEL Fuel Company approved the structure of more efficient gas centrifuge of new generation, it was recommended for batch production.

Main objectives 2017:

  • mastering of batch production of the new model of gas centrifuge.

Research and Engineering Complex

Scientific-production association

With the purpose to improve research and design activity and to provide full life cycle of the products (from marketing to disposal) in 2015 the Fuel Company implemented the first stage of establishment of Scientific and Production Association (SPA). Three scientific-design and technological competencies of three design bureaus (NRDC LLC, OKB-Nizhny Novgorod JSC, Centrotech-SPb JSC) were united.

In 2016 consolidation of their main activity with production enterprises Uralpribor LLC and ZEP LLC was completed. SAP organizational structure was established at UGCMP LLC (CATU Novouralsk) with responsibility subdivision to the section of new businesses development, section of gas centrifuges development, and section of operational activity. The detailed analysis was carried out with subsequent transfer of the required assets of the enterprises consolidated into SPA to provide production activity of SPA, execution of current contractual obligations and future orders related with general industrial activities and prospective products. In January 2017 the company was officially renamed into Centrotech SPA LLC[i].

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SPA holds all required licenses to carry out production activity of the consolidated enterprises.

During restructuring of enterprises:

  • engineering and design competencies were preserved,
  • main professional competencies of workers were preserved,
  • efficiency of working functions was increased through improvement of processes and reduction of the lead time.

Brand name SPA Centrotech was accepted for future use in development and promotion of the brand of Scientific and Production Association. Centrotech- SPb JSC (Saint Petersburg) is the leading design bureau established in 1945, with huge experience and rich history. Taking into account that Centrotech-SPb JSC joined the developing SPA, the continuity in history and the best traditions of the consolidated enterprises became an important argument to choose the name and logo “Centrotech”.

In 2016 there were worked out and approved the development strategy and the tactical plans to implement SPA development strategy; there were also developed the sales plan, the contraction plan 2017– 2019, and the roadmaps for implementation of the tactical plans. New concept of space optimization was developed; its integral part involves the project aimed at replacement of the worn out utilities, modernization and optimization of engineering infrastructure of UGCMP LLC, increase of reliability and safety, reduction of basic production and auxiliary space.

SPA combined the gained experience in development, design and production of high technology products. This association created additional foundation for growth of non-nuclear business due to consolidation of competencies, acceleration of development and production launch of new non-nuclear products.

Labor efficiency of UGCMP LLC, RUB mln/person

2014 2015 2016 2016/2015
3,48 2,99 1,91 -36,0%

General Industrial Activities


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TVEL Fuel Company develops production of competitive, high-tech products for nuclear and other industries. Development of general industrial activities (production of non-nuclear products and rendering of non-nuclear services) is based not only on the need to develop new markets outside NFC, but also the need to create substituting high-tech production to employ the personnel dismissed in the process of reorganization. For detailed information about innovations in the sphere of general industrial activities please refer to the Section 4.3.2 “Second Business Core Development”.

In order to create new and innovative industries aimed at development of the second core business of TVEL Fuel Company, the projects are implemented on four programs of innovative development: New Energy, Machine Building, Metallurgy, Chemistry.

Key areas of new businesses development in TVEL FC

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Metallurgy

New businesses Products Basic enterprises Scope Supplies
Special metallurgy Zirconium alloys ChMP JSC Electric Power, Machine Building, Medicine, Metallurgy Russian Federation
Titanium alloys Russian Federation / foreign countries
Hafnium Russian Federation / foreign countries
Calcium metal and calcium injection wire Russian Federation / foreign countries
Special tube rolling Titanium alloys rolling (tubes, rods, wire) ChMP JSC Machine Building, Medicine Russian Federation / foreign countries
Nanometallurgy Superwire and DMA-based wire ChMP JSC Electric Power, Medicine, Transportation, Telecommunication, Systems Russian Federation
Nickel filtering elements, powders Centrotech SPA LLC Production sector Russian Federation

Titanium Production.

Titanium welding wire achieved the international recognition of experts at Weldex 2016 (Rossvarka): CHMP JSC was awarded the diploma "The best titanium welding wire of Russia".

CHMP JSC was awarded for the titanium welding wire at the Russian competition "100 best Russian products".

The record revenue was gained from general industrial activities (more than RUB 10 billion in 2016) due to the market launch of new titanium products: cold-rolled tubes with spiral finning, welding and spring wire.

Experience and competence of ChMP JSC in the field of production of another highmelting-point material — zirconium products — served as foundation for establishment and development of titanium products manufacture.

In the past three years volume of titanium production at ChMP JSC increased almost 2.5 times. More than RUB 1 billion was invested in the launch of titanium production. Funds were allocated to modernization of operating and acquisition of new equipment, R&D, personnel training.

Full cycle of titanium wire production — from the ingot to the end product — makes it possible to control the quality of products on every production cycle. Titanium welding wire achieved the international recognition of experts at Weldex 2016 (Rossvarka): CHMP JSC was awarded the diploma “The best titanium welding wire of Russia”. CHMP JSC was awarded for the titanium welding wire at the Russian competition “100 Best Russian Products”.

At present time the enterprise sets up production of more than 200 products of titanium and its alloys both within the import substitution program, and within the existing demand in Russia and abroad. Titanium produced by ChMP JSC is applied in the fields where high-tech solutions are required — the enterprise focuses on development of special purpose tube rolling, manufacture of products out of special alloys, and development of materials for additive technologies.

Products of titanium-based intermetallic alloys manufactured by ChMP JSC seem to have great potential. These are the products from new alloys with unique combination of features, in 2019 the aircraft industry is expected to become the main consumer of products made of these alloys.

ChMP JSC also offers high-technology materials of titanium and its alloys to the European car manufacturers for car components production. Products of the enterprise have features complying with the modern market trends, and make it possible to implement complex engineering solutions. Application of lightweight and hard metal in car manufacturing, instead of conventional steel, allows increasing the efficiency of vehicle design.

ChMP JSC offered to its potential customers a product which is new for the Russian market — titanium wire in the form of electrodes. The production of titanium welding wire was launched by ChMP JSC in 2015. In 2016 more than 50% of titanium welding wire sold in the Russian market, was produced by ChMP JSC. The plant sets up production of titanium wire, thus it is planned to expand geography of supplies and attract consumers from new segments of the market.

Titanium wire produced by ChMP JSC is a new generation product. Availability of upto- date equipment stock made it possible to achieve unique characteristics of the products. Its main feature and competitive advantage is low hydrogen content (less than 0.001%), which excludes any possibility of cracks of weld joint and ensures high quality of welded surface. This keeps our wire in great demand.

>50%
of titanium welding wire sold in the Russian market in 2016 was produced by ChMP JSC
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There are many titanium manufacturers in Europe, but only together with ChMP we are able to secure supplies of hightech products to the leading manufacturers of Western Europe. In automobile industry these are Maserati, Mercedes-Benz, BMW, Ferrari and many others. In electric power industry — Siemens, in aviation — Italian company Leonardo, we have already started supplies of titanium products made by ChMP to these companies.

Alexey Rasskazov

Director General of Hermith (Germany)

Results 2016:

  • signing of a five-year contract for RUB 2 billion with European metal trading company (Hermith GmbH) for supply of titanium products manufactured by ChMP JSC;
  • launching of production of extremely thin-walled cold-worked tubes of titanium alloy PT-1M to satisfy demands of Russian power engineering;
  • initiation of the project on manufacturing of semi-finished products (rods and wires) of complex alloyed high-impact titanium alloy with specified structure and properties for application in aircraft engineering.

In December 2016, collaborative efforts of TVEL JSC and ChMP JSC resulted in signing of a five-year contract with Hermith GmbH, the European distributor of titanium products, for supply of the major batch of titanium roll stock.

During the term of the contract it is planned to deliver to the European market more than 1 thousand tons of different titanium products made by ChMP JSC. The contract provides for annual manyfold increase of the scope of supply, and the peak will fall on 2021. Total contract value exceeds RUB 2 billion.

Under the contract the specialists of ChMP JSC shall elaborate the range of products, most demanded on the European market, in compliance with technical requirements of foreign standards. The approved “trending up” supply schedule will allow to increase the product output and expand the current production.

The first batch, comprising mostly the pilot samples, was sent to the customer for control tests.

Plans 2017 and in the midterm:

  • completion of re-equipment of titanium production;
  • increase of the long-term orders portfolio and expansion of sales of titanium products for ship-building and aircraft industries.

Development of Calcium Production

ChMP JSC on the basis of the existing calcium metal production mastered the production of new high-tech product — calcium injection wire for metallurgical melts treatment. Application of calcium injection wire HighMet makes it possible to reduce 5 times consumption of calcium per ton of processed steel, and to improve its non-metallic impurities cleanliness. Specialists of the plant develop range of calcium injection wire taking into account the individual demand of the customer and specific process conditions of steel production.

Consumers of HighMet wire are major Russian metal manufactures: Severstal PJSC, Magnitogorsk Iron & Steel Works JSC, Novolipetsk Steel PJSC.

Results 2016:

  • orders portfolio for the first half of 2017;
  • pilot lots were shipped to Europe and India;
  • development of the project aimed to launch production of calcium injection wire, the production will be organized based on RPS principles.

Plans 2017 and in the midterm:

  • expansion and strengthening of cooperation with major Russian metal manufacturers;
  • entry into foreign markets, including India and South-East Asia;
  • twofold increase of the production yield due to expansion of production capacities.

ChMP JSC for the first time presented its products with HighMet brand on the international forum “MMMM-2016” in August 2016 in New Delhi (India).

The bobbin with winding wire became the emblem of the new brand. ChMP JSC positions the range of metallurgic products HighMet as the resulting mix of science and development of the advanced technologies.

The core product of HighMet range is calcium injection wire for liquid steel processing (Calcium solid wire), providing high quality of metal along with reduced processing costs. HighMet brand also includes base bullions, products of alkali metals, titanium and zirconium. In 2016 there were sold more than 1,700 tons of HighMet products.

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PA ECP JSC manufactures 95 isotopes of 19 chemical elements

Chemistry

New businesses Products Basic enterprises Scope Supplies
Production of stable isotopes Production of 95 isotopes of 19 chemical elements: Ar, W, Ge, Fe, Ir, Cd, Si, Kr, Xe, Mo, Ni, Sn, Os, Pb, Se, S, Te, C, Zn PA ECP JSC SGChE JSC Production Sector, medicine Research in the sphere of properties of elementary particles of new generation, agriculture, precision and accuracy, research in geology, biology, oceanology, etc. Russian Federation / foreign countries
Catalysts Autocatalysts Ecoalliance LLC (UEIP JSC subsidiary) Production Sector Russian Federation
Zeolite catalysts for petroleum chemistry NCCP JSC Production Sector Russian Federation / foreign countries
Fluorine compounds Extra pure fluorine hydrogen ECP JSC, SGChE JSC Nuclear, oil-producing and chemical industry, transport Russian Federation
Trifluoromethanesulfonic anhydride (triflic anhydride) AECC JSC Pharmaceutical, chemical industry, agricultural chemistry Russian Federation / foreign countries

Stable Isotopes.. PA ECP JSC is the major manufacturer of stable isotopes using gas centrifuge method. The enterprise is in top five of the world manufacturers of isotopes. PA ECP JSC manufactures 95 isotopes of 19 chemical elements. The plant exports isotope products to more than 25 countries, from Australia to USA and European countries.

Results 2016:

  • supply of the first batch of molybdenum-100 isotope for international project on investigation of neutrino properties with AMoRE scientific collaboration;
  • development and supply of the first silicon crystal enriched in silicon-28 isotope for international project for creation of mass standard “Kilogram-3”;
  • conclusion of the contract for supply in 2017 of germanium-76 isotope for the international project GERDA;
  • approval of quality conformance of disks made of iridium-191, start of export supplies.
In recent years the sector of catalysts production for oil and chemistry industry is being actively developed. In 2015 the Company organized supplies in South-East Asian countries. In 2016 the contract was signed with the Sweden company for catalysts supply. We negotiate with European companies, offerour services in the African continent.

Plans 2017 and in the midterm:

  • commissioning of pilot plant for iridium isotopes production;
  • production and delivery of 20 kg of Germanium-76 isotope for GERDA project;
  • production of 6 kg of polycrystalline silicon-28 for “Kilogram-30” project.

Catalysts.

Starting from 2011, Ecoalliance LLC, subsidiary of UEIP JSC, is the active business-unit of Novouralsk industrial cluster. Due to availability of the research laboratory, Ecoalliance LLC can develop any kind of a catalyst, both for the cars with diesel engine, and natural gas and gasoline engines. Ecoalliance LLC is the only Russian manufacturer of catalysts systems for neutralization of exhaust gases The enterprise covers full technological cycle: from catalyst development to batch production of exhaust gases neutralizers.

Key competences of Ecoalliance:

  • design development and modelling of catalytic collectors of the cars with gasoline and diesel engines, complying with the international standards Euro 3, Euro 4, Euro 5, Euro 5+, Euro 6;
  • prototype production;

  • development of catalysts for purification of industrial emissions;

  • services on comprehensive testing to confirm compliance with environmental requirements of automobile transport.

Catalyst units and elements of exhaust gas withdrawal system (neutralizers) supplied to Russian automobile manufacturers form the greater part of the manufactured products (more than 90% of revenue).

Main objective of the enterprise — new markets entry. In particular, one of the promising trend is the production catalysts, that will be installed on all heat and gas supply facilities. Production of automobile catalysts and catalyst units is also one of the key directions.

In 2015–2016 Ecoalliance LLC launched new products: catalysts under the ecological standard Euro-5/5+, and for new car models (including LADA Vest and X-Ray). This resulted in almost 2 times increase (up to RUB 1.9 billion) of revenue from sales of automobile catalysts in 2016. Thus, there was created a growth area for development of production of ecological catalysts. We plan to tap new market segments, enter the foreign markets, develop new types of products, including catalysts for industrial gas purifying systems.

Machine Building

New businesses Products Basic enterprises Scope Supplies
Instrumentation Car electrical equipment Tochmash VPA JSC
  • Electric power
  • Production sector
  • Transportation
Russian Federation
  • Static frequency converters
  • Dosimeters, radiation meters
  • Controllers
  • Printed circuit boards
  • Connector boxes
Centrotech SPA LLC
  • Electric power
  • Production sector
Russian Federation
Equipment for nuclear fuel cycle
  • Ball- and screw-type plugs
  • Stop valves
  • Units and components for gas centrifuges
Tochmash VPA JSC
  • Electric power
  • Production sector
Russian Federation
Mining industry equipment Oil-fields equipment Centrotech SPA LLC Geological exploration, mining and processing of minerals Russian Federation

New Energy

New businesses Products Basic enterprises Scope Supplies
Lithium and lithium-based materials Lithium hydroxide-7, lithium metal, lithium chloride NCCP JSC
  • Transportation
  • Electric Power
  • Metallurgy
  • Aircraft
  • Production sector
  • Telecommunication Systems
Russian Federation / foreign countries
Materials for Li-Ion cells
  • Lithium ferrophosphate
  • Lithium cobaltate
NCCP JSC / Katodnye Materialy (Cathode Materials) LLC (NCCP JSC subsidiary) Russian Federation
  • Lithium tetrafluoroborate
  • Electrolyte fluid for lithium batteries
SGChE JSC
Accumulators and generators, fuel elements
  • Special purpose (military and space machinery) electrochemical power sources (alkaline fuel cells)
  • Electrochemical power sources on solid oxide fuel cells
Centrotech SPA LLC
  • Electric Power
  • Telecommunication Systems
Russian Federation

Results 2016:

  • production and delivery of lithium cobaltate-based cathode material for Russian Li-ion cells for space industry;
  • in cooperation with the leading specialized institutes, start of development of new precious-metalfree technology of production of independent current sources based on solid oxide fuel cells for infrastructure facilities;
  • mastering of production of lithium tetrafluoroborate and electrolyte fluid on its base.

Plans 2017 and in the midterm:

  • implementation of the pilot projects for introduction of Li-ion cells;
  • elaboration and implementation of suggestions for development of competencies in the sphere of active materials for Li-ion cells, and technologies aimed at production of Li-ion cells;
  • production of pilot runs of independent current sources based on solid oxide fuel cells for gas transportation infrastructure.
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80%
TVEL FC share of the worlds market of lithium hydroxide enriched in 7 (Li-7)

Cathode Materials Cathode Materials LLC, the subsidiary of NCCP JSC, is engaged in development of this direction. The Company makes products for Russian consumers. Following the results of market survey, it is suggested to expand the range of products, to add the products that will be in demand in the immediate future.

Lithium Production.

Lithium products of NCCP JSC

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The Fuel Company manufactures two sorts of lithium metal — battery and catalytic. Lithium hydroxide enriched in 7 (Li-7) isotope is applied in nuclear power industry as the additive to heat carrier of PWR primary cycle for water chemistry adjustment. The Company enjoys 80% of the world market.

In 2016 the Company for the first time produced lithium hydroxide-7 with purity 99.99% on an industrial scale. This product is in demand in nuclear reactors with thorium-based fuel cycle and in medicine for diagnostics and treatment of oncology diseases.

Results 2016:

  • signing of a five-year contract with American company Rockwood Lithium (Albermarle Company) for annual supply of lithium metal manufactured by NCCP JSC;
  • start of implementation of the investment projects aimed to increase efficiency of lithium compounds enriched in lithium-7 isotope and lithium metal with natural isotopic abundance;
  • activity on expansion of lithium products sales markets due to expansion of the range of products. Significant work was undertaken to promote the lithium products made by NCCP JSC on foreign markets.

Plans 2017 and in the midterm:

  • expansion of the sales markets;
  • launch of the projects for diversification of the products range and production capacity.
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We have been cooperating with ROSATOM State Corporation, Electrochemical Plant of TVEL Fuel Company for more than ten years, and we are completely satisfied with the established relations. We highly appreciate the quality of molybdenum-100 isotope manufactured by Electrochemical Plant and want to explore the potential of the enterprise in production of other isotopes for application in the projects of our Center.

Yeongduk Kim
Director of the Center for Underground Research in the field of Nuclear Physics and Particle Physics of the Institute for Basic Science, Republic of Korea

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378
RUB mln
Economic benefit in 2016 from rationalization proposals and suggestions for improvement

PRODUCTION MANAGEMENT

The need to expand an order portfolio to achieve strategic objectives, as well as severe and ever-growing competition in global markets always has required special approaches to production and management processes and development of performance efficiency management system.

ROSATOM Production System


ROSATOM Production System (RPS) means culture of lean manufacturing and continuous improvement of processes to ensure a competitive advantage on a global scale.

RPS is based on five principles which encourage the employees:

  • to be attentive to customer’s requirements;
  • to respond the issues as they emerge;
  • to incorporate quality into the process and produce no defective products;
  • to identify and eliminate any loss (excess inventory, decoupling stocks, downtime, unnecessary movements, etc.);
  • to set an example to colleagues.

These principles were formulated on the basis of the best examples of domestic and foreign experience, especially, the system of scientific organization of labor, production and management of the USSR Ministry of Medium Machine Building and Toyota Production System of Toyota, the Japanese automobile company.

RPS is aimed at strategic targets of ROSATOM, and RPS projects are focused on productivity growth, cost reduction and increased quality of production. Knowledge of RPS tools and ability to apply such tools are obligatory for professional growth of employees engaged in nuclear industry.

Starting from 2015, ROSATOM applies the system-based approach to deploy RPS on the pilot enterprises of the industry.

In case of system-based deploying of RPS, the company, included into ROSATOM management system, receives the status of RPS enterprise. According to the concept of RPS development, all RPS-enterprises implement the integrated package of RPS-measures, and are subdivided as follows:

  • RPS Leaders,
  • RPS Candidates,
  • RPS Reserve.

RPS enterprises in 2016:

  • MSZ JSC
  • KMP JSC
  • UEIP JSC
  • NCCP JSC
  • SGChE JSC
  • ChMP JSC
  • PA ECP JSC

The integrated package of RPS measures means:

  • setting clear objectives to the level of small group leaders based on definition of the objectives of the enterprise, division, sector;
  • training the managers of the enterprises, participants of the projects in RPS methodology;
  • development of the product flow of the enterprise;
  • implementation of RPS-projects in office and at production site on a single methodology;
  • incentive and development programs for employees of different levels.

In 2016 three enterprises of TVEL Fuel Company (MSZ JSC, UEIP JSC, KMZ JSC), who received the status “RPS Leader 2015”, confirmed the achieved level and continued systematic development of RPS-flows, training and motivating the personnel to improve efficiency of processes. In 2016 four more enterprises of TVEL Fuel Company — SGChE JSC, PA ECP JSC, ChMP JSC, NCCP JSC — were also included in the list of the pilot enterprises of the industry. The purpose of these enterprises is to get the status “RPS Leader 2016”.

Enterprises — RPS Leaders receive the package of privileges including the following: visits of a business coach to the enterprise, possibility to share experience with Russian and foreign advanced enterprises, family tickets, certificates for training in ROSATOM Corporate Academy, participation in Workspace Design project, etc.

In the reporting period the Company opened and implemented more than 1,300 RPS projects aimed at addressing the issues in the product flows and improving efficiency of all business processes. More than 80% of the managers of TVEL FC enterprises were involved in the project activity. The impact of all RPS projects on businessgoals of the enterprise is being evaluated on a regular basis.

Suggestions for Improvement

The Company provides regulated payments for suggestions for improvement (SFI):

  • SFIs adopted: payments equal to RUB 300 / 700 / 1,000 for submitting SFIs of various categories and economic value;
  • SFIs implemented with economic effect: payment upon introduction of a percent of the resulting economic effect;
  • promoting implementation of SFIs with technical solutions (rationalization proposals): up to 30% of the amount paid to the authors.

In 2016 there were filed more than 142 thousand SFIs, 93.1% were accepted for realization and 91.6% — implemented. Efficiency indicator of SFIs process is the quality indicator; it is calculated as the ratio of the adopted SFIs to the submitted ones. SFIs’ quality becomes better from year to year.

Semi-annually TVEL Fuel Company makes the rating of the enterprises in the team RPS efforts. Following the result of the first half year 2016 the leader was SGChE JSC.

The contest of RPS projects and SFI was held on the annual industrial forum “RPS Leaders”. On the part of TVEL Fuel Company the contest winners were:

  • In “SFI for improvement of the equipment efficiency” — Dmitry Sergeevich Sevostianov, the head of department 1, workshop 48 of MSZ JSC;
  • In “The best RPS-project aimed at cost reduction” — Mikhail Anatolievich Balykov, the head of UEC PA ECP JSC;
  • The most active worker of the industry in SFI submission was Andrey Vladislavovich Medvedev, operator of processing, separation and purification of chemical compounds of SGChE JSC.

Work with suggestions for improvement in TVEL Fuel Company

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13,146
persons
received training in efficiency management
56,8
RUB mln
personal bonuses paid for the benefits from rationalization proposals and SFI
30,2
RUB mln
operating bonuses paid to minor groups for contribution made to efficiency improvement
80%
workers
submit SFI
6,6
SFI
per 1 worker
92%
SFI
was introduced

In average, 6.6 SFI from one worker are submitted in TVEL Fuel Company. 80% of personnel of the Company participate in the improvement process through SFI submission.

Economic benefit in 2016 from rationalization proposals and suggestions for improvement made RUB 378 million.

Amount of the paid personal bonuses for the benefit from rationalization proposals and SFI — RUB 56.8 million, amount of the operating bonuses paid to minor groups for contribution to efficiency improvement — RUB 30.2 million.

We continuously improve the product quality through technical upgrade of production, improvement of the process automation, and implementation of the number of investment and RPS projects aimed at efficiency improvement.

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MSZ JSC Quality Management System fully complies with the requirements of ČEZ, a.s. Previous audit of QMS on MSZ JSC was conducted in 2013. It bears mentioning that ever since the Quality Management System has undergone certain positive changes. They have happened not only on MSZ JSC, but overall the TVEL Fuel Company. And these improvements are clearly visible.

Roman Kubin

ALTA a.s. Project leader (Czech Republic)

QUALITY MANAGEMENT

The Company’s Quality Management is based on the principles specified in international standards ISO 9000.

In 2005 TVEL JSC implemented, certified and distributed in all its subsidiary companies (within the framework of an integrated management system) four management systems (ISO 9001:2008, ISO 14001:2004, ISO 50001:2011 and BS OHSAS 18001:2007).

TVEL Fuel Company uses the Integrated Quality Management System (QMS), certified in accordance with the requirements of international standard ISO 9001:2008, ISO 14001:2004, ISO 50001:2011 and BS OHSAS 18001:2007 in TUV International Certification.

The main strategic goal of TVEL Fuel Company in terms of quality is permanent increase of the product quality and operational safety, aimed at maximum satisfaction of customers, and allowing to expand the markets, ensure sustainable development of subsidiary companies. There was elaborated and introduced the set of measures and procedures focused on effective operation of the quality management system, customer feedback is provided to develop and improve the activity of the Company, customers’ satisfaction assessment is carried out annually

The system covers complete cycle of design, development, production, storage, delivery and scientific and technical assistance in work with FA and components of nuclear reactor cores, as well as with materials and accessories to thereto.

To improve the Integrated Management System (IMS) of TVEL Fuel Company, there was introduced and is being improved the culture of safe production — the priority objective identifying occupational activity of the workers and the business processes of the organization. The required documents were worked out to comply with the requirements of IAEA and the customers’ preferences.

Results 2016:

In 2016 TVEL JSC and its subsidiaries successfully passed the first witness audit under ISO 9001:2008, ISO 14001:2004, BS OHSAS 18001:2007, ISO 50001:2011 in the international certifying authority TÜV Thüringen e.V. (representatives of Intercertifica TÜV LLC together with TÜV Thüringen). The certificate of the Integrated Management System was extended for a year.

No events of non-compliance with regulations and voluntary certification concerning impact of the products and services on health and safety were revealed in the reporting year.

In the reporting year no penalties were charged for non-compliance with laws and regulations concerning the provision and use of products and services.

There were no claims or complaints filed by the customers in 2016.

Number of NF and GC nonconformities revealed by the Quality Control Department and representative of the customer at the manufacturing plant in 2014–2016 was reduced thrice.

. Number of revealed nonconformities

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In the reporting year the Company successfully passed the audit on the part of Fennovoima company (Finland). The audit confirmed considerable progress in development of IMS documentation and programs ensuring quality of fuel contract, and displayed the evidence of the measures aimed at improvement of safety culture. It was noted that nuclear safety culture is the object of continuous improvement.

In 2016 the customers’ satisfaction assessment was conducted. The List of main customers of TVEL involved in the customers’ satisfaction assessment:

  • Russia (Rosenergoatom Concern JSC),
  • Hungary (MVM Paks NPP CJSC),
  • Czech Republic (ČEZ JSC),
  • Slovakia (Slovenské elektrárne JS),

Audit of NPP in the field of nuclear fuel operation

In 2016 by the decision of ROSATOM State Corporation there was conducted the audit of Kolsk, Kalinin, Balakovo, Kursk and Rostov NPPs in the field of nuclear fuel operation on the part of FA supplier and manufacturer. The purpose of the audit is to assess compliance of activity with the requirements. The final report was sent to Rosenergoatom Concern JSC; remedial actions are being elaborated based on the findings and recommendations.

  • Bulgaria (Kozloduy NPP),
  • Finland (Fortum Power and Heat Oy), etc.

Customers’ satisfaction assessment, points (five-point scale)

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Plans 2017:

Scheduled works on transition of TVEL JSC and its subsidiaries to new versions of ISO 9001:2015 and ISO 14001:2015 for subsequent certification in 2018.

There are provided the works on improvement of the Integrated Management System, introduction of risk-oriented management model to achieve sustainable success of TVEL Fuel Company.

1.
Москва
АО «ТВЭЛ», АО «ВНИИНМ»,
АО «МЗП», АО «ЦПТИ»

2.

Московская область

АО «МСЗ» (электросталь)

3.

Санкт-Петербург

Филиал ООО «НПО «Ценротех»

4.

Владимирская область

АО «ВПО «Точмаш» (Владимир),
ПАО «КМЗ» (Ковров)

5.

Удмуртская республика

АО ЧМЗ (Глазов)

6.

Свердловская область

АО «УЭХК»,
ООО «НПО «Центротех» (Новоуральск)

7.

Новосибирская область

ПАО «НЗХК» (Новосибирск)

8.

Красноярский край

АО «ПО «ЭХЗ» (Зеленогорск)

9.

Томская область

АО «СХК» (Северск)

10.

Иркутская область

АО «АЭХК» (Ангарск)