Technology transferVanatome chose another option

Aasian fall 1986, dozens of French engineers discovered the beaches to the turquoise water of Daya Bay, its open-sided classrooms serving of shrimp sautéed in garlic and a huge land cleared at the foot of the hills. Dispatched in the South of China barely leaving his isolationism, these frameworks from the powerful EDF or Framatome, but also several small family companies, came to animate the site of the first nuclear power plant in the country. Twenty-three years later, on December 21, on his official trip to Beijing, François Fillon reiterated this "founding act" of the partnership franco-chinois in the field of nuclear power, touted the know-how of the French die trying today to anchor its presence in a Chinese market become more important in the world. During his next visit on the spot, expected late April, Nicolas Sarkozy held to the same kind of speech. "The equation is very simple, summarizes Jean-Marc Husson, CEO of Vanatome, a manufacturer of safety valves installed in Saint-Vallier, in the Drôme. It is the market of the future, which will guide the industry for decades. To survive, he must be here.

Hundreds of reactors

If the China has hesitated in the early 2000s, to initiate an extensive nuclear program, its growth, very greedy energy soaring, finally convinced the team in power to launch the construction of dozens of reactors to break the dependence of the country to the coal-fired plants, which produce yet 78 of its electricity, but are accused of being too polluting and unable to respond to the increase of the request. China, which currently operates 11 plants representing an installed capacity of 9.1 gigawatts (GW), already approved the construction of 29 new nuclear reactors, is the equivalent of 30 GW additional, and studies, according to the statistics of the World Nuclear Association, more than 124 other projects. Officially, the authorities said previously want to have at least 40 GW of capacity by 2020, but that is two weeks, the Government has indicated through Wang Yumin, the Vice-Chairman of the State Electricity Regulatory Commission, that the China could actually have a park nuclear 80 GW at the end of the Decade. The roadmap is ambitious. And this is only a beginning: because in the aftermath, some experts predict the construction of several hundreds of reactors by 2050. With the key, no doubt, new opportunities for the French players in the sector...

But things have changed since the golden era of Daya Bay. Had long accompanied EDF, Areva and Alstom sites of reactors of second generation, and then click one of the EPR of Taïshan, where they won several large contracts, the small traffic suppliers face now more frontal in a Chinese market competition that in emancipating of French influence, has become more complex. "Initially, the Chinese bought Islands full, nuclear or conventional, and it was up to the provider, such as Areva and Alstom, find its subcontractors.". "Today, suppliers find themselves in the front line to Chinese buyers, who spend the markets with very fine cutouts", decrypts Jean-Claude take, the President of the association CCTB (partnership France China electricity), created to help French SMEs wanting to develop in China. For these companies, the challenge is to take advantage of the bridgeheads are EDF or Areva, while imposing as a full. "For us, the difficulty is to deal with our Chinese interlocutors, without be imposed by our French partner, explains Etienne Bernard, President and CEO of the 350 employees company that bears his name, specialized in the manufacture of actuators (equipment manager power plants safety valves open)." It must do everything so that they have confidence in us. "The great French references still play a key role:"the quality label provided by EDF is very important for Chinese clients,"provides Bernard Sahla, Director of the public electrical nuclear engineering.

Local implementation

In addition to building PRT 2 and 4 Toshiba-Westinghouse AP1000, hexagonal corporations seek to place their products in the tenders for construction of CPR 1000 projects. This second generation reactor largely inspired by a former French model is favoured by the authorities and the local electricians, who need fast, safe and cheap energy solutions. "It must absolutely be well positioned on the CPR 1000 because it will become a world reference that will want the Chinese to then disseminate international," warns Jean-Marc Husson, of Vanatome. "The problem is that it urge that, here three or four years, only groups installed locally can respond to calls for tenders on the Chinese reactor projects," explains Daniel Biaussat, Director General of the manufacturer of nuclear valves Ségault, based at Mennecy, in the Paris region. "With such a pace of construction, it is natural that China wishes to see domestic manufacturers," confirms Alain Tournyol du Clos, nuclear Advisor of the Embassy of France in Beijing. In the negotiation of the contract of sale of the 2 Taïshan EPR reactors, the Chinese have thus obtained the second reactor has a far superior to the first local integration. "The nuclear industry will be in China but will not necessarily be that Chinese", moderates Hervé Machenaud, former boss of the EDF's Asia-Pacific Branch, now Director Executive, in charge of production and engineering of the Habs group.

Sooner or later, all these French SMEs should ask local implantation to ensure their survival in a renowned market "wild". They are reluctant. In Beijing, the French authorities intend to regularly SMEs in the sector complain of heavy corruption of markets, the infringement of their parts or the blackmail to technology transfers imposed by some of their clients. The Chinese Government in all policy areas, which wants to break its dependence on foreign expertise, grows by regulatory constraints the foreign players in the sector to quickly join local groups, in joint ventures. "At each Salon professional, we are approached by dozens of local interlocutors, but when seeing their catalogues, there are products strongly resembling those of their former foreign partners," says a French framework. "Our SMEs have difficulty finding partners of same size." "Their Chinese interlocutors are much larger and smaller French companies naturally fear to be unbalanced and lose their expertise", admits Jean-Claude take, which the association tries to help its members find themselves in the local nuclear maquis.

CCTB says that 40 of its 53 members have, despite the risks, already attempted implementation in China. Left to grope. Two years ago, the Group Bernard and inaugurated a factory in Beijing. After beginnings in joint venture with a local partner, French society has regained control of the capital, and developed a Wofe (Wholly Foreign Owned Enterprise) structure with 100 foreign capital. "This factory headed by two French engineers provides support and services of our Chinese on-site customers, while the nuclear material is exclusively manufactured in France," says Etienne Bernard. The pattern does not intend to transfer its know-how, but he is aware that he will be making more and more in China. "Our Chinese clients will soon want to that our products are manufactured on Chinese soil."

Technology transfer

Vanatome chose another option. In exchange for 49 of the capital of a joint company established with HVC, a public company located north of the country, the company has not paid a penny but agreed to transfer technology to its valves to the CPR 1000 over two years. The agreement in question, which should lead to the creation of nearly 500 jobs in China, will allow the French group to benefit financially from the explosion of the Chinese market, while supporting the activity of its plant in Saint-Vallier, who will continue to provide technical studies, not included in the transfer agreement. "It took me four years to identify the right partner and validate a satisfactory solution." "I could not hire my company of 72 people financially in a deal of several million euros," summarizes Jean-Marc Husson. With revenues from the joint venture, the small group hopes to boost its R & d. "Single innovation will allow us to survive in China," concludes the CEO. "It is twelve years I work in the region." I understand that here, there was no miracle recipe. Just paris more or less successful.