UNCLAS PRETORIA 001261

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E.O. 12958: N/A
TAGS: ENRG EPET EMIN EINV EIND ETRD SF CH
SUBJECT: Westinghouse China Manager Promotes Technology Transfer and
Localization in South Africa

REF: Pretoria 941


1. (SBU) SUMMARY: The Charge hosted a luncheon on June 17 for
Westinghouse where the company's Technology Transfer and
Localization Director for its China project show-cased
Westinghouse's track record for technology transfer localization,
and punctuality for its nuclear power plants under construction in
China to a range of relevant SAG officials. The SAG has reaffirmed
its commitment to augmenting its nuclear power supply, but is still
establishing the way forward. The Mission has organized several
events to provide commercial advocacy for Westinghouse's bid over
the last two years. END SUMMARY.

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Commercial Advocacy for Westinghouse
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2. (SBU) Charge d'Affaires, Economic Counselor, and Minerals/Energy
Officer worked with Westinghouse Regional Vice President Rita Bowser
to organize a luncheon on June 17 for Westinghouse Technology
Transfer and Localization Director - China Mark Crump to emphasize
the company's commitment and implementation of its technology
transfer and localization initiatives in China. The objective was
to convey Westinghouse's proven track record and its applicability
to South Africa to key officials of the SAG as the new government
assesses its way forward for building new nuclear power plants in
South Africa. Officials from the Department of Energy, Department
of Trade and Industry, Department of Science and Technology,
Department of Finance, Toshiba, and the Japanese Embassy attended.
The group represented most of the agencies comprising the SAG
nuclear task team which will present the nuclear "dossier" to the
new government in the next few months to establish the way forward.
Westinghouse has told the Embassy that this is a key period for
influencing the evolving process (reftel).

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Technology Transfer in China
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3. (SBU) Crump highlighted its leadership and track record in
international technology transfer and localization in South Korea,
China, and other countries. Westinghouse is working closely with
the Chinese State Nuclear Power Technology Corporation for ambitious
technology transfer and localization for its AP1000 technologies in
China. The objective is to achieve nuclear power self-reliance for
Generation III+ passive Pressurized Water Reactor (PWR)
technologies. Crump remarked that the Chinese are very ambitious in
the speed of implementing localized capacity, aiming for significant
domestic production in the third and fourth plants. Westinghouse
poured first concrete on time March 31, 2009 at its first Sanmen I
plant and expects to be ahead of time on the second Haiyang I
facility. Westinghouse is successfully implementing a broad-based
program for transfer of key equipment, sub-supplier, and fuel
technologies to China.


4. (SBU) Comment: Westinghouse handily pitched China as a template
for its AP1000 technology transfer, thereby promoting its direct
applicability to developing the nuclear manufacturing industry in
South Africa. The Embassy was instrumental in convincing
QSouth Africa. The Embassy was instrumental in convincing
Westinghouse to bring its China Manager to South Africa to trumpet
its success in China. This commercial advocacy success came at a
key juncture as the new government evaluates where it will go with
nuclear power. Coal is perceived as relatively cheap and abundant,
but the SAG is adopting carbon mitigation and energy diversity as
greater priorities. There is also a relative shortage of coal and
hydro resources in the Western and Eastern Cape Provinces, where the
future nuclear power plants are to be located. Westinghouse is
still in the game.

LALIME