Nuclear Connections Connecting UK Manufacturing businesses to Nuclear Supply Chain opportunities Information and conten

1. Nuclear Connections Connecting UK Manufacturing businesses to Nuclear Supply Chain opportunities Information and content is owned by the Nuclear AMRC 12/09/2012 Issue 2/2012

2. Nuclear ConnectionsConnecting UK manufacturing businesses to nuclear supply chain opportunities The Process ExplanatoryNotes: Visualisations of the Nuclear AMRC ‘full order winning process’. This embraces engagement(s) with major Utilities, Package Owners and Tier 1’s / 2’s. The cycle address targeting of potential Supply Chain members and their alignment to potential Vendor needs, have completed F4N gap-analysis improvement activities. The process outcome in terms of success can be measured by Supply Chain member pre-qualifications and or tendering opportunities being secured. Ultimate success remains that of realisation of the order (the win).

3. Explanatory Notes: Defining the enabling characteristics of Buyer Engagement

4. Nuclear Station Nuclear AMRC Scope • Buyer Engagement Reactor Systems Nuclear Advanced Manufacturing Research Centre Within Scope Fuel & Fuel Handling Systems Safeguard Systems Diesel Systems Auxiliary Systems Waste Collection & Storage Systems Turbine Systems Explanatory Notes: Depicts a high level view of the major systems found on a nuclear plant in terms of those within the scope and boundary of the Nuclear AMRC.

5. Generic Plant Breakdown of Cost • Buyer Engagement Project Mgt & Eng Transportation Equipment Construction Mgt Explanatory Notes: A high level overview of how a typical, but generic, plant cost is made up. In a positive sense it demonstrates two key areas: those of equipment and site construction, where UK manufacturing and construction Supply Chains can add real value and where opportunities will exist. Site Construction

6. Generic Equipment Breakdown of Cost • Buyer Engagement Other Electrical Piping & Valves Mechanical Instrumentation & Control Explanatory Notes: A lower level view of how equipment cost is made up and as with the previous slide (4) visualises where major spend areas are. In terms of major equipment ‘heavy component’ costs it is an area where substantial elements will be through non-UK Supply Chain members, certainly in the case of early UK plant builds (plants 1, 2 and 3).

7. Timeline for 16GW into the United Kingdom • Buyer Engagement Nuclear AMRC overview of indicative new build programme, pre March 2012 2023 7 2027 4 2028 2011 2012 1 2013 1 2014 2 2015 4 2016 4 2017 6 2018 6 2019 7 2020 7 2021 7 2022 8 2025 6 2026 5 2024 6 EPR 1.65GW Hinkley Point H1 EPR 1.65GW Hinkley Point C1 EPR 1.65GW Hinkley Point H2 EdF Energy 6.4GW Total Indicative Project Timelines EPR 1.65GW Sizewell S1 EPR 1.65GW Sizewell S2 Wylfa W1 Wylfa W2 Horizon Nuclear Power 6GW Total Oldbury O1 Oldbury O2 SellafieldMoorside A1 NuGeneration 3.6GW Total SellafieldMoorside A2 June 29 SellafieldMoorside A3 Dec 30 Plants Under Construction in Year Explanatory note: Provides an indicative programme baseline as at March 2012. This is subject to change, and awaits programme clarification following the sale of Horizon, and NuGen’s reactor technology choice. Construction and commissioning timescales as well as sequencing between builds likely to change.

8. First Opportunity: Twin EPRs for Hinkley Point • Buyer Engagement Explanatory Notes: A pictorial view of what a typical, EPR, plant in terms of the key buildings and their descriptions. UK manufacturing Supply Chain opportunities will exist in buildings 1, 2, 3, 5 and 6. There may be limited opportunities in the Turbine Building for U.K supply. The Nuclear AMRC’s Supply Chain work is focusing on matching Suppliers to potential Customers expected to deliver equipment’s in these areas.

9. Nuclear Plant:Systems Structure • Buyer Engagement Reactor Systems Nuclear Steam System Supply (NSSS) In Containment Refuelling Water Storage Fuel & Fuel Handling Systems Fresh Fuel & Spent Fuel Storage Systems Material Handling Systems Fuel Pool Cooling System Emergency Boration System Volume Control System Safeguard Systems Emergency Feed Water System (EFWS) Residual Heat Removal System (RHRS) ) Component Cooling System (CCS) Safety Injection System (SIS) Support System Diesel Generator System Diesel Systems Sampling System Air Exhaust System Operational Chilled Water System Auxiliary Systems Waste Treatment System (Liquid & Solid) Collection & Storage Systems Waste Collection & Storage Systems + = Nuclear AMRC scope Turbine Generator Set & Condenser Auxiliary Systems Steam Condensate System Feed water System Turbine Systems Explanatory Notes: Takes examples of key nuclear systems, details of which can be found in the published EPR pre-construction safety reports (PCSR), and outlines examples of important sub-systems found in a typical nuclear plant The PCSR’s can be accessed through a number of website links include those of EdF and many other public sites and provide a good insight into each system including useful schematic diagrams

10. Supply Chain Opportunities: Nuclear Plant Systems Structure • Buyer Engagement Safeguard Systems Reactor Systems Fuel & Fuel Handling Systems Reactor Coolant System (RCS) Main Steam System (MSS) Residual Heat Removal System (RHRS) Emergency Feed Water System (EFWS) Chemical & Volume Control System (CVCS) Safety Injection System (SIS) Reactor Pressure Vessel Reactor Pressure Vessel Main Body Reactor Pressure Vessel Head & Seals Reactor Pressure Vessel Internals Reactor Pressure Vessel Control Rod Drive Mechanisms Main Coolant Pipework Loop Pressuriser Pressuriser Heater Elements Cold Water Spray Lines Pressure Control & Spray Line Valves Thermal Insulation Pressuriser Connection Loop Steam Generators Dryers & Separators Main Coolant Pipework Loop Thermal Insulation Reactor Coolant Pumps (incl Motors) System Seals Main Coolant Pipework Loop Thermal Insulation Reactor Coolant Piping Piping & Bends / Connections Thermal Insulation Main Supports & Structures Reactor Vessel Support Structure Reactor Vessel Core Catcher Steam Generator Supports Pressuriser Supports Pressuriser Supports Handling & Cranes Misc / General Pipework Misc Pumps Valves & Actuators Supports & Structural System Steelwork Fittings & Connections Explanatory Notes: Takes examples of key nuclear systems, to key sub-system detail, all derived from the published EPR pre-construction safety reports (PCSR). Here examples of components and or products that can be found in these systems can be seen. Supply Chain opportunities will come from working with key organisations who operate at the Tier 1-2 level, examples of which will be explained later in this material set.

11. Defining Component Quality Requirements • Buyer Engagement • We are mapping components within various systems • Then, mapping each component against quality requirements, within systems (eg, ISO9001, PED, ASME III, RCC-M Class 1-3, etc.) • Support/information from utilities and reactor vendors required Explanatory Notes: Provides a high level view of quality systems and standards, and demonstrates how RCC-M levels can be read across to other standards including ASME and European ISO standards. Major suppliers such as and AREVA and other Tier 1’s are expected to deliver further training of quality standards and levels for organisations supporting their Supply Chain activities. The Nuclear AMRC will be facilitating and developing this training with AREVA and will be working with EDF to provide similar guidance over the months ahead. Today there is no confirmed definition of the applicable standard to be adopted for UK build programmes (ASME or RCC-M). It should be recognised that there are different quality standards for different parts of the plant. The requirements will be identified in the RFQ’s. This may still be subject to variation as programme requirements develop.

12. Example Purchasing Strategy(Commodity / Component Matrix) • Buyer Engagement Explanatory Notes: Green typically denotes an activity with the product. The commodity matrix example shown provides an insight into the product-component mapping work undertaken by the Nuclear AMRC. This can be obtained by working through published plant systems to create theoretic material take-off data to help understand the market opportunities. The Nuclear AMRC uses this area to match Supply Chain members to potential opportunities. Collaborating with the Nuclear AMRC will benefit UK Supply Chain members in areas of component and product opportunities.

13. Explanatory Notes: Demonstrates to steps used by the Nuclear AMRC, across the UK Supply Chain and industrial base, to identify and help develop sector members such that they can succeed through to selection and order winning phases.

14. Supplier Identification • c700 companies identified • Prioritise target list of companies according to timeline, capability and ambition • Mapped by region, components, etc. Explanatory Notes:The Nuclear AMRC has identified potential UK Supply Chain who could participate in nuclear programmes. The landscape covers sub-sectors, from new-build to operation and through the decommissioning. The map provides a view of geographic locations and clusters of industrial manufacturing engineering expertise. Today this map embraces over 700 Supply Chain members including organisations form sectors such as Oil and Gas, Off-shore Wind, Pharmaceutical and Process Engineering and, more. This industrial landscape employs over 70,000 people in a variety of jobs across the UK.

15. Explanatory Notes: An outline of the key steps under the Nuclear AMRC’s ‘Fit for Nuclear’ (F4N) programme which is geared towards preparing interested organisations for potential market entry the diagnostic activities and self-managed improvement plans.

16. Supplier Engagement Supplier Engagement Explanatory Notes: Provide a step-by-step walk through the F4N process with a clear outcome of potential recommendation to Nuclear clients, and improved envisaged success rate. The steps are supported by a robust Nuclear AMRC process that seeks to ensure that organisations going through the programme are provided with continual guidance and beneficial advice regardless of their size and or capability offering. Through the programme Suppliers will be guided towards beneficial training programmes and or recommended contacts for direct follow-up and continued development.

17. Explanatory Notes: Outlines the steps which can lead to technology developments, in manufacturing and potential order winning improvements as a result. This is where working alongside the Nuclear AMRC as a potential member on a multitude of projects gear towards Supply Chain business could lead to a transformation of specific business capabilities efficiencies and future offering.

18. Supplier Development Supplier Development Workstreams Nuclear Advanced Manufacturing Research Centre Assessment & Diagnostics HR, IR & Culture Manufacturing Capability Supplier Strategy & Finance Lean Production Explanatory Notes: Visualises the themes and improvement / research areas where Supply Chain members can and would benefit from by working with or becoming a member of the Nuclear AMRC. Supply Management Value Improvement • Workstreams tailored to meet the individual needs of the suppliers

19. Explanatory Notes: Demonstrates the steps toward matching Supply Chain members and ultimately order winning. These steps cover a multitude of opportunities and potential options for UK Supply Chain members to consider and or directly pursue. This not only includes working with UK Clients but also the potential of forming relationships / alliances with potential European partners.

20. Routes to Market Routes to Market Supply Chain Map (Example) • Flamanville: 119 ITTs • Hinkley Point: 150+ ITTs • NSSS • Main Civils • Turbine Island • Marine Works • Mechanical Erection • HVAC • Primary effluent treatment • Relief valves • Fuel loading machine • Pumps • Control valves • Control room design • etc... EDF Tier 1 UK and International Tier 2 UK Tier 2 international Tier 3 UK Tier 3 International Tier 3 - Local Explanatory Notes: Provides a simplified view of the Supply Chain structure, based on the Utility, EdF, using an example from the current European, Flamanville build programme. The model for UK builds is expected to be based on a similar structure, this being circa 160 main packages.

21. Routes to Market Market Opportunities Supply Chain Tier example Utility / End-users T1 T2 T3 T4 T5 UK Tier 1 International Tier 1 Vessel and Tank Packages Valve and Pump Packages Heat Exchanger Packages System Packages Others Pump Suppliers Vessels, Tanks and Heat Exchanger Suppliers Pipework Packages Valve Suppliers Others Forging and Casting Suppliers Bearing Suppliers Machining Suppliers Welding Suppliers Special Process Suppliers Explanatory Notes: Provides a simplified view of the working supply chain structure, demonstrating how the Tier relationships work. This also explains where routes to market can be based on the type of supply chain member their corresponding capability offering. This is an example. There will be other components and systems over and above those mentioned on the chart. Raw Material Suppliers and other Sub-tier activities

22. Routes to Market Procurement Process – Major Spends (example) For Each Generic Opportunity For Each Contract Opportunity Sourcing ITT/RFQ Tender Evaluation Tender Selection Interview meetings where appropriate Sourcing RFI Sourcing PQQ Sourcing Shortlist OJEU Notice (Where Req’d) Where appropriate Demonstration - Capabilities, Resources, Culture [Quality &Safety ] Credentials - [business & manufacturing] Demonstration – Understanding, Knowledge, Experience, Track-record & Commitment to People Process & Performance Development Phase 2: Qualification Phase 1: Pre- Qualification Risk Management Explanatory Notes: Outlines a typical sourcing to order winning structure is widely used in standard Public Sector and Utility based purchasing opportunities. The structure also identifies where risk management process underpin the entire purchasing activity. Lower level supply chain opportunities will not follow the above but will use appropriate and or simplified acquisition processes.

23. Routes to Market Supply Chain Research Nuclear Events & Direct Meetings Supply Chain Conferences & Networking Events Client & Member Vendor Databases Comprehensive Web / Portal Searches Nuclear AMRC’s Portal Comprehensive Nuclear Supply Chain Capability Database A-Z UK Manufacturers (Nuclear Interests) Supporting Tier 1 Clients / Vendors Identifies Manufacturing Capabilities Covers Material – Manufacturing & Processes Maps Geographic Locations & Key Clusters Explanatory Notes: The Nuclear AMRC has drawn on wide variety of data-sources to create a UK nuclear-manufacturing landscape. With a , continuing to be evolved and comprehensive database, the Nuclear AMRC is able to provide focused supply chain matching advice to emerging nuclear Client. This across a substantive A-Z capability base.