The rate of expansion in the nuclear power market is higher than it has been for a long time. Many new reactors are being built and a number of older facilities are being upgraded. This is providing Habia, which specializes in custom-designed cables, with opportunities in an energy market where safety is of the utmost concern.

Nuclear power has attracted considerable attention in the past year. The nuclear reactor disaster following the tsunami in Japan made headline news across the world. A short time later, Germany announced its plans to close the country’s nuclear power plants. Despite these events, growth in the nuclear power market remains strong.

Record growth

“A total of 63 new reactors are currently being built worldwide. Countries such as South Korea, Russia, China and India are experiencing the most significant growth,” explains Micael Lindberg, Global Head of the Nuclear business area at Habia. “Older facilities are also being upgraded. Overall, this has resulted in record growth that is on par with the growth reported in the 1970s and 1980s.”

Extensive projects

A total of 435 nuclear power plants are currently in operation worldwide. These plants have an average service life of 40 years, which means that they are now either starting to be phased out or upgraded to allow them to remain in operation for at least another 20 years. These upgrades also involve replacing the cables inside the reactor containments. This will be advantageous for Habia, which specializes in so-called critical cables for this area of the nuclear power plant.

“Our cables are mainly used for various types of measuring and control equipment, but Habia also sells power cables, which are used to run the engines in the valves and pumps inside the facilities,” explains Micael Lindberg.

Unique requirements

Cables classified as critical to plant safety must be able to meet rigorous requirements. The term used for this industry standard is LOCA, which stands for “loss-of-cooling accident.” The LOCA standard states that cables must be able to withstand a controlled shutdown of the facility, during which the cooling system no longer functions normally. Such a process can result in higher radiation, pressure and temperatures, which cannot be permitted to impact the performance of Habia’s products.

“Considerable thought goes into safety procedures. I don’t think any other industry in the world has such strict requirements,” emphasizes Micael Lindberg. “This affects everyone involved in these projects. Our employees have undergone special training and the requirements imposed on documentation, testing and traceability are strict.”

Distinctive economic cycle

The nuclear power segment does not follow the usual economic cycle. Instead, political decisions determine the agenda for the work to be performed. Customers include both energy companies and the companies that manufacture the nuclear power plants themselves. When upgrades are performed, Habia often works directly with the energy companies that own and are responsible for the facilities that are already in operation.

China in a class of its own

Despite the accident in Fukushima, the global nuclear power market appears to be growing at a rapid rate. Naturally, this growth stems from increasing energy requirements. When the advantages and disadvantages associated with various forms of energy are debated, nuclear power is considered by many countries to be the most viable alternative.

“I don’t think the disaster in Fukushima will have a long-term effect on expansion plans. The level of activity has declined somewhat, but I expect that progress will soon regain momentum,” says Micael Lindberg.

Attractive opportunities

China is a fast growing market. In 2012, 16 reactors are expected to be in operation. This number will increase to more than 60 by 2020, and China is expected to have 100 reactors in operation by 2030. Upgrades to older nuclear power plants also represent a growing area of the market. One such example is the Swedish plant Forsmark, where all three reactors will likely be upgraded within three to five years.

“This means that all of the critical cables will be replaced, which will create attractive business opportunities for us,” notes Micael Lindberg.