ABB bolsters China’s construction of 3rd-generation nuclear power plants

Participates in the construction of world’s 1st 3rd-generation nuclear power plant using AP1000™ Nuclear Power Technology

ABB supports China’s nuclear development with advanced equipment and rich experience

Beijing, August 18, 2010 –ABB, the leading power and automation technology group, announced that ABB Xiamen Switchgear Company and ABB Xiamen Low Voltage Equipment Company today signed a cooperation agreement with the State Nuclear Power Engineering Company (SNPEC) in Xiamen. Under the agreement, ABB will supply all the low and medium voltage switchgears for the construction of the nuclear islands of SNPEC’s Zhejiang Sanmen and Shandong Haiyang nuclear power plant projects. Both projects are the first group of nuclear projects approved by the State Council to use the most advanced 3rd-generation technology -- AP1000™ Pressurized Water Reactor (PWR). The No. one generating unit of Zhejiang Sanmen nuclear power plant Phase I will be the world’s 1st nuclear project to use this technology.

Lui KamWai, general manager of ABB Xiamen Low Voltage Equipment Company, said at the signing ceremony, “We are excited to participate in this milestone project in the global nuclear sector, which demonstrates customer recognition for our advanced equipment and strong experience. Nuclear power is a strategic and emerging industry, capable of bolstering China’s economy. ABB actively supports China’s safe and efficient nuclear power development with our strength and expertise in technology, products and engineering. We will continue to actively promote eco-friendly, safe and reliable nuclear power in China.”

The AP1000 is the only 3rd-generation nuclear reactor to have been approved by the U.S. Nuclear Regulatory Commission for the general design. It is the safest and most advanced commercial nuclear technology available on the global market. The AP1000 features the Passive Safety System, with a more concise design, easier operation and greater efficiency compared with the conventional Pressurized Water Reactor Safety System, helping improve the safety of nuclear power plants and significantly lowering the construction and long-term operating costs. Using modular technology in the construction, the AP1000 allows for the construction of multiple sub-projects at the same time, remarkably reducing the time of construction. From the start of construction to the uploading of nuclear fuel for power generation, the process can be completed in as little as 36 months, offering significant cost efficiency.

Zhejiang Sanmen Nuclear Power Plant Phase I, with an over 40 billion RMB investment, will build two AP1000™ nuclear power units, with the first unit expected to begin operations in 2013, and the second in 2014. The two 1250 MW units will generate 17.5 billion kWh of electricity annually, meeting the additional power demands of Zhejiang province. In addition, Haiyang Nuclear Power Plant Phase I in Guangdong will invest 45 billion RMB for the construction of two 1250 MW nuclear power units, with the first unit to start operations in 2014 and the second in 2015. The annual generating capacity of Haiyang Nuclear Power Plant Phase I will exceed 17.5 billion kWh of electricity.

According to the agreement, ABB Xiamen Switchgear Company will supply 124 units of ABB UniGear ZS1 medium voltage switchgears and VD4 vacuum circuit breakers, while ABB Xiamen Low Voltage Equipment Company will deliver 300 units of MNS3.0 low voltage switchgears. These products are core equipment for power distribution systems of nuclear and conventional islands, ensuring reliable, safe and stable power supply and distribution to the relevant systems. Product delivery plans to be completed by April 2012. ABB Xiamen Switchgear Company previously signed a contract with Zhejiang Sanmen nuclear power plant to deliver 88 units of 10kV medium voltage switchgears for the No. one generating unit of the conventional island.

Nuclear power plants have stringent requirements for the safety and stability of power equipment. ABB switchgears offer over 60 years of reliable service life. The product design and manufacturing materials help to limit faulty electric arcs to a minimal level, ensuring the safety of both the nuclear plant and field staff.

The two local companies have incorporated the nuclear product quality assurance system and set up a comprehensive nuclear switchgear product identification system to fully address the reliability requirements for nuclear power products. Through a series of simulation tests and theoretical analysis, ABB ensures a high degree of product reliability. The nuclear product identification test determines if equipment can maintain normal operations in the last day of its service life span under earthquake conditions to ensure the safe operation of the nuclear plant. The two Xiamen companies have passed all state examinations and tests for its nuclear equipment.

ABB Xiamen Switchgear Company is one of the world’s largest manufacturers of medium voltage switchgears and circuit breakers and ABB Xiamen Low Voltage Equipment Company is the largest global manufacturer of low voltage switchgears. Both companies have ranked among “China’s Top 100 Electric Companies” for many consecutive years. The two companies have participated in a number of important state nuclear power projects, including the Qinshan Nuclear Power Phase I and Phase II Expansion, the Fangjiashan Nuclear Power Plant, the Lianyungang Tianwan Nuclear Power Plant, the Liaoning Hongyanhe Nuclear Power Plant, the Fujian Ningde Nuclear Power Plant, the Guangdong Yangjiang Nuclear Power Plant, the Guangxi Fangchenggang Nuclear Power Plant, the Fujian Fuqing Nuclear Power Plant, and the Guangdong Taishan Nuclear Power Plant. They have consistently contributed to the reliable operation of these nuclear power plants, while acquiring rich experience in engineering management and project service.

ABB (www.abb.com) is a leader in power and automation technologies that enable utility and industry customers to improve their performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs about 117,000 people. ABB has a full range of business activities in China, including research and development, manufacturing, sales and services, with 15,300 employees, 30 joint ventures and wholly owned companies, and an extensive sales and service network across 60 cities.

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