Westinghouse and Vítkovice Take First Concrete Steps Towards Building Czech AP1000® Reactors

PRAGUE – July 25, 2013 – Westinghouse Electric Company today announced that it has contracted with Vítkovice Power Engineering a.s., a member of the Czech Vítkovice Machinery Group, to construct a mock-up of one of the AP1000® nuclear power plant’s critical modules in preparation for the potential construction of Westinghouse AP1000 nuclear power plants in the Czech Republic.

This important and significant demonstration project will have Vítkovice Power Engineering manufacturing sub-module 05, a cutaway section of the larger CA-20 module. The structural module CA-20 of the AP1000 nuclear power plant is comprised of 72 sub-modules, weighs approximately 900 metric tons, and contains the area that will be used to house spent fuel. The sub-module mock-up is expected to be completed in early 2014.

This purchase agreement follows a recent (January 2013) amendment to an existing Memorandum of Understanding with Vítkovice a.s., Vítkovice Heavy Machinery a.s., Vítkovice Power Engineering and Hutní montáže a.s. Under the terms of the agreement, these prominent Czech companies joined the Temelin AP1000 team to jointly offer as potential fabricators of key structural and mechanical equipment modules, should the AP1000 reactor be selected to complete the expansion of the Temelín Nuclear Power Plant.

“This demonstration project marks a further important milestone in Westinghouse’s ongoing activities to develop local partners and deliver a highly competitive tender to ČEZ for the construction of two AP1000 reactors at the Temelín site,” said Danny Roderick, Westinghouse president and CEO. “The potential scope of supply represents a very significant percentage of the total plant construction and would uniquely position these companies for similar work in other AP1000 construction projects in Europe.”

Chairman of the Vítkovice Board of Directors and President of the Czech Machinery Cluster Jan Světlík said, "We are pleased that Westinghouse considers Vítkovice Machinery Group to be an experienced and reliable partner. By this way, we are also meeting our own strategy to be at center stage of the development of nuclear energy worldwide. We believe cooperation with Westinghouse will ultimately allow us to reach this strategic goal.”

The demonstration project will allow Vítkovice Power Engineering to familiarize itself with Westinghouse technical and quality requirements. Westinghouse adheres to internationally recognized codes and standards, such as American Society of Mechanical Engineers (ASME). Vítkovice Power Engineering will additionally benefit by applying these standards globally, beyond the nuclear industry.

The AP1000 nuclear power plant has been designed to make use of modern modular-construction techniques, which allows many more construction activities to proceed in parallel. This reduces the calendar time for plant construction, thereby reducing the cost of money and the exposure risks associated with plant financing. These construction techniques are already being utilized with great success in the U.S. and China, where eight AP1000 units are currently under construction.

Westinghouse Electric Company, a group company of Toshiba Corporation (TKY:6502), is the world's pioneering nuclear energy company and is a leading supplier of nuclear plant products and technologies to utilities throughout the world. Westinghouse supplied the world's first pressurized water reactor in 1957 in Shippingport, Pa., U.S. Today, Westinghouse technology is the basis for approximately one-half of the world's operating nuclear plants, including more than 50 percent of those in Europe.

Vítkovice Power Engineering is member of the Vítkovice Machinery Group, the most important Czech engineering group with a strong position in selected segments of machinery production and in the area of supplies of large investment assemblies. It incorporates approximately thirty companies. The group consists of a modern, extensive and unique production base, coupled with substantial know-how based on research and development. The Vítkovice trademark celebrated its 180th anniversary in December 2008. Vítkovice Machinery Group is an important supplier of components for nuclear power plants. Pressurizers and steam generators manufactured in Vítkovice serve in the Czech nuclear plants at Temelín and Dukovany, and also in other nuclear power plants outside the country, for example in Slovakia, Russia and India.

AP1000 is a trademark or registered trademark of Westinghouse Electric Company LLC, its affiliates and/or its subsidiaries in the United States of America and may be registered in other countries throughout the world. All rights reserved. Unauthorized use is strictly prohibited. Other names may be trademarks of their respective owners.