bar

Strategy

Strategy and Business Plan of TVEL Fuel Company 2015–2019 were approved by the Strategic Board of ROSATOM. The strategy established core performance indicators for mid-term and long-term periods till 2030.

Strategic targets of TVEL Fuel Company

en/graphs/graph_02__02_br_500.gif

КTarget correlation of ROSATOM and TVEL Fuel Company

en/schemes/scheme_02__01_cover.gif

PRIORITY OPERATION AREAS

Priority fields of activity of TVEL JSC are stipulated by the strategic goals of TVEL Fuel Company.

To meet the objectives of the Second Business Core Development, TVEL Fuel Company organizes production in related spheres and successfully operates the accumulated competences in design and production of high-quality and precision prospective products. The strategy of TVEL Fuel Company involves the projects of the Second Core; these projects guarantee exponential growth of the Company earnings in 2030 perspective with consistently high labor productivity. In a longer-term perspective, till 2020, we plan to continue accelerated development, and to reach the revenue from general industrial activities around RUB 20 bln.

Under the current conditions on the FE NFC markets, with the restricted investment recourse, the continuous efficiency improvement is a key condition to preserve leadership of TVEL Fuel Company in the international field. Effective execution of research and development (R&D) and realization of production capacities modernization are aimed to ensure multiple growth of the key financial and economic indicators by the year 2030. Adequate management of the enterprises’ resources, ensuring flexibility of technological conversions in accordance with the market conditions and continuous increase of labor efficiency contribute to the image of TVEL Fuel Company as the most efficient division of ROSATOM.

Growth in the FE NFC markets implies development of relations with existing and new consumers and retention of the current positions owing to unconditional performance of contractual obligations under executed contracts. TVEL Fuel Company provides its partners with the products that combine the best performance characteristics along with the guarantee of safe operation. The Company implements a number of projects for long-term development of nuclear technologies, including the projects providing nuclear fuel cycle closure due to mixed nitride uraniumplutonium fuel fabrication modules (MNUP fuel) development and spent nuclear fuel (SNF) reprocessing.

To provide social and environmental acceptability, he strategy of TVEL Fuel Company presupposes strict commitments with respect to the nuclear “heritage” problems, funds allocation to charity and social projects, as well as establishment of substituting hightech enterprises for qualified personnel discharged during restructuring.

The strategy of TVEL Fuel Company is oriented at achievement of the following indicators by 2030:

  • Enrichment market share gain — to 42% (in cooperation with TENEX), nuclear fuel fabrication — to 22% owing to manufacture of traditional products having good consumer properties, and entry to new nuclear markets
  • Twofold growth of the revenue in comparable terms of 2014.
  • Tenfold growth of revenue in nonnuclear businesses (including businesses being established) in comparable terms of 2014.
  • Threefold growth of labor efficiency in comparable terms of 2014.

DRIVERS OF GROWTH AND ACHIEVEMENT OF OBJECTIVES IN NFC MARKETS

  • supplies of NF for new VVER units in the Russian Federation and abroad;
  • expansion of presence in the markets of China and India;
  • global commercialization of TVS-K;
  • application of RS/RT raw materials;
  • supplies of NF and components for research reactors of Western and Russian design;
  • expansion of supplies of zirconium components.

SWOT-analysis

СStrengths Weaknesses
  • ВHigh quality and reliability of products, verified by its consumers;
  • Reference of the products due to cooperation with Russian NPPs within the operation of new types of fuel, possibility to pass fuel qualification in RF;
  • Product management on all FE NFC cycles, control over production at all stages;
  • Strong technical and scientific cluster that allows continuous improvement of NF characteristics;
  • Financial stability due to efficient resource management on all FE NFC cycles;
  • Load following and increased fuel cycles due to fuel characteristics;
  • Flexible technological and commercial conditions of cooperation;
  • Price competitiveness of the products due to cost optimization;
  • Support on the part of ROSATOM and the state;
  • Recognizable brand.
  • Need to address the problem of “nuclear heritage” and provision of nuclear and radiation safety;
  • Social and ecological commitments in the regions of presence, rehabilitation of sites;
  • Insufficient business diversification.
Opportunities Threats
  • Supplies of NF for new VVER units in the Russian Federation and abroad;
  • Expansion of PWR markets presence;
  • Expansion of cooperation with the South-East Asian countries;
  • Supplies of NF and components for research reactors;
  • Development of new modifications of NF, improvement of fuel cycles
  • Development of scientific and technological cooperation with foreign partners;
  • Application of different types of raw material;
  • Expansion of supplies of zirconium components;
  • Scientific and technological support of the customer at the fuel operation;
  • Development on the markets of general industrial activities and future-oriented products.
  • Reduction of prices for the products and services of FE NFC;
  • Low rate of NPP capacities commissioning on the traditional markets;
  • Competition with conventional and alternative power sources;
  • Growing tension on external markets, including VVER segment;
  • Quantitative restrictions on Russian products on separate markets;
  • Efforts made by the market players to improve the efficiency;
  • Need for additional efforts to preserve prime cost benefits in conditions of inflation and volatility in currency exchange rates.

Factors of long-term business sustainability and cooperation with the customers

Safety and reliability of fuel

  • Fuel safety — strategic priority of TVEL Fuel Company;
  • The Company invests in the fuel safety;
  • Implementation of the zero failure program.

Creation of zero-waste technologies,
and rehabilitation of sites

  • Decommissioning:
    — of the nuclear facility in KhMZ to “green lawn”;
    — of the unit B of VNIINM JSC to “green lawn”;
    — of sublimation production at UEIP JSC.
  • Processing of depleted uranium hexafluoride at W plant (~10 thousand tons every year).

High quality

  • Production automation, minimization of the human errors;
  • Technological improvement of instrumentation operations;
  • Compliance with the requirements of international quality management.

Development of the Second Business Core

  • Increase of the Company stability in conditions of the nuclear business cyclicality;
  • Expansion of the Company’s financial stability base.

CONTRIBUTION OF THE RESULTS 2016 IN ACHIEVEMENT OF THE STRATEGIC GOALS OF TVEL FC

Target

Growth on NFC markets

Project

Creation of conceptually new fuel types

Goals/Indicators Nuclear fuel for reactor facility BREST-OD-300, reactor facility BN-800, REMIX.

Results 2016 Acceptance testing of REMIX-fuel pellets, FA and CEFA.

Effect Development Prospects.


Project

Construction of pilot demonstration energy complex (PDEC)

Goals/Indicators Construction of reactor facility BREST-OD-300, MNUP-fuel fabrication modules and SNF reprocessing.

Results 2016 Production and acceptance testing of EFA-12, -13 with MNUP fuels of FN-600 reactor.

Effect Development Prospects.


Project

MOX-fuel production

Goals/Indicators Establishment at FSUE MCP of MOX-fuel production for reactor facility FN-800.

Results 2016 Start of production of the first delivery batch TVS with MOX-fuel for reactor facility FN-800.

Effect Development Prospects.


Project

TVS-K

Goals/Indicators Entry to the market of nuclear fuel for Western design reactors.

Results 2016 Signing of agreement with GNF-A with the purpose of licensing and qualification of TVS-K in USA for the future commercial supplies, conclusion of the first contract with the American NPP operator for pilot production of the Russian TVS-K fuel.

Signing of the contract with Vattenfall Nuclear Fuel AB (Sweden) for supply of TVS-K nuclear fuel for Ringhals NPP.

Effect Market Development.


Project
Fuel for research reactors

Goals/Indicators Conclusion of new contracts for supply of fuel for research reactors.

Results 2016 Signing of the contract and supply of the fuel for research reactor in Czech Republic.

Conclusion of the number of contracts for supply of the nuclear fuel components for research reactors in Argentina. Signing of the Roadmap for development of bilateral cooperation in the field of nuclear fuel cycle with BATAN (Indonesia) with the view to elaborate the possibility of nuclear fuel supply for research reactors.

Effect Market Development.


Project
Creation of fuel with new consumer properties

Goals/Indicators VVER-1000: TVSA-12.

Results 2016 Unit 6 of Kozloduy NPP (Bulgaria) was charged with the first batch of fuel TVSA-12.

Effect Market Retention.


Project
Project “Fabrication Plant in Ukraine”

Goals/Indicators Organization of nuclear fuel production in Ukraine.

Results 2016 No practical measures were put into effect in 2016 due to lack of finances of the Ukrainian partner. TVEL JSC is ready to continue the project implementation under the earlier coordinated conditions.

Effect Market Retention.

img_02__002
Target

Second Business Core Development

Project

Metallurgy

Goals/Indicators Entry the European titanium products market.

Results 2016 Signing a five-year contract with the metal trading company Hermith GmbH (Germany) for the supply of more than thousand tons of titanium mill products with total value more than RUB 2 billion.

Effect New Markets Entry


Project
New businesses

Goals/Indicators Expansion on the Russian metallurgy market and the international markets entry; Expansion at chemical machinery and products market; Anchoring at precision engineering market.

Results 2016 Establishment of the Scientific-Production Association (SPA) with the view to concentrate the competencies on GC development and to manufacture the 2nd core products Development and approval of SPA development strategy, development and approval of the tactical plans of SPA implementation strategy for 2016–2019.

Effect New Markets Entry.

img_02__003
Target

Efficiency improvement

Project
ROSATOM Production System

Goals/Indicators Implementation of sectoral, divisional RPS projects, as well as the enterprises’ projects; Lead time decline, increase in labor efficiency, manufacture cost reduction, achievement of optimal scale and topology.

Results 2016 Gaining positive economic effect from RPS-projects implementation and implementation of employees’ suggestions for process improvement.

Effect Efficiency improvement.


Project
Energy performance

Goals/Indicators ОOptimization of power resources consumption by TVEL FC enterprises.

Results 2016 Reduction of thermal power consumption by 8.8% and electric power consumption by 3.9% as compared to the reference values 2015.

Effect Efficiency improvement.


Project
Technological leadership

Goals/Indicators Reduction of prime cost of uranium enrichment.

Results 2016 Production of the pilot batch of gas centrifuge of new generation.

Effect Efficiency improvement.


Target

Social and Environmental Acceptability

Project
Liquidation of “nuclear heritage”

Goals/Indicators Execution at the sites of TVEL FC the activities related to nuclear radiation safety.

Results 2016 Within the FTP NRS-2: decommissioning of the first NRHF: in the period 2015–2016 EDB-Nizhny Novgorod JSC completed the works on decommissioning of the laboratory of resource tests.

Effect Maintenance of environmental security and social awareness in the cities of TVEL FC presence.


Project
Program “Formation and preservation of social accord environment in the regions of presence of TVEL FC”

Goals/Indicators Attraction of private investments; Growth of business support projects; Social infrastructure development in the cities of TVEL FC presence.

Results 2016 Submission of proposals to the Ministry of Economic Development of Russia concerning establishment of the territories of advanced social and economic development in CATU Novouralsk, Seversk, Zelenogorsk and Glazov.

Effect Maintenance of environmental security and social awareness in the cities of TVEL FC presence.


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)