1.2. Strategy Implementation 

Here one can find description of Division Strategic goals, results of Strategy implementation during the reporting year and Sustainable Development Agenda.
GRI 102-20

1.2.1. Strategic Goals

The Engineering Division's strategy was approved in 2014 and aims to achieve the ROSATOM strategic goals.

Leadership in the Core Business Area

The main strategic goal of the Company in sight till 2030 includes keeping the leading position in the global market in terms of number of constructed power units and the market share with consideration for market growth tendencies in the absolute terms and strengthening of competition between the well-established and new players (stepping-up of China and Korea). In addition to the competition strengthening, the NPP construction market is a subject of pressure from other generation sources – mainly by the solar and wind power that gained the global leadership in 2016 in terms of increment rates. This trend is caused by the reduced cost of the rated capacity kilowatt of the alternative power and consequently by the reduced LCOE rate. In 2016, the forecast growth rates were revised for the share of renewable power sources in terms of its increase, while a more dynamic decrease is forecacted for LCOE parameter.

So, ensuring a competitive LCOE level as compared with the conventional and renewable power sources is the main challenge to be taken up by the Division to achieve the Company’s strategic aim in the business main core.

One of the main strategic elements aimed to reduce the cost and meet deadlines of NPP construction and consequently to achieve the competitive LCOE level is the uniform information platform generated on the basis of Multi-D technology.

Scrollable table
Comparison of LCOE of Different Power Sources, USD/(MW*hr)
Wind Sun High
Gas Low and
2030 indicators
forecast of 2015
83 86 50 85 70–80
2022 indicators
forecast of 2016
65 85 50 60–85*
Current value in 2016 77 81 72 60–85
* Depends on technology.

Operational Sustainability

The Division aims to maintain execution of the projects portfolio so as to ensure that the potential fluctuations in the portfolio due to postponement or cancellation of particular projects should not influence the execution of other projects under the respective agreements.

To achieve this goal, the Division promotes the development of new business areas along with rapid accumulation of projects in the business main core. The priority is given to those market segments that may use competences in the business core, namely:

  • Construction of RAW and SNF management facilities, NRHF decommissioning. The Company possesses its own specialized engineering&technological competences, full-fledged competences in production of back-end specialized equipment. Besides, NUKEM Technologies, Nukem Technologies Engineering Services and JSC “NIKIMT-Atomstroy" experience and references in the area of decommissioning projects implementation facilitate the efficient works in this market segment.
  • Construction of research reactors, low- and mediumpower reactors. High power NPP construction management competences can be directly used in implementation of research, low- and medium-power reactors projects. Moreover, construction of these facilities is often the national economy’s first step to found the full-fledged nuclear power business. Thus, this is a prospective opportunity to build-up the projects portfolio in the business core rather than an independent business only.
  • Provision of PMC-services. The available own information platform to ensure the complex engineering objects construction management and future objects management throughout the whole lifecycle facilitates provision of consulting services to both nuclear power companies and non-nuclear businesses. 2016 was a turning point for the Company, since it obtained the first contract for PMC-services outside the nuclear industry. Since the global market of complex engineering objects construction is much more widespread than that of NPP construction, the PMCservices market is one of the Company’s key areas in terms of its business sustainability in the long-term perspective.

Financial Sustainability

The Engineering Division does not rely on ROSATOM financial support and is able to use own additional resources for development of other divisions. The strategic aim is to maintain this opportunity.

Construction of Unit 3 of the Tianwan NPP (China)
Click image to zoom

1.2.2. Strategy Implementation

ROSATOM Strategic Goals
Engineering Division Strategic Goals
ROSATOM Strategic Goals
To increase the
Corporation’s share
in international markets
Engineering Division Strategic Goals
Leadership in the
Core Business Area
2016 Headlines
  • The first-of-a-kind power unit connected to the grid at the first GenIII+ Novovoronezh NPP.
  • Completed the first power of Units 1,2 at Kudankulam NPP.
  • Finalized the contract preparatory works for El-Dabaa NPP construction in Egypt.
ROSATOM Strategic Goals
To develop new products
for the Russian and
international markets
Engineering Division Strategic Goals
Operational Sustainability
2016 Headlines
  • The extra-industry PMC-contract was signed with JSC “Skorostnye Magistrali” – a strategic customer which is a subsidiary of JSC “Russian Railways”.
  • The works for UIS implementation at the stage of facility operation were launched in collaboration with the ROSENERGOATOM CONCERN JSC.
  • The tenders for the Kozloduy NPP radioactive waste storage facility construction and the Kozloduy NPP power units 1–4 equipment dismantlement projects were won by Nukem Technologies as part of the German-Bulgarian and German- Russian Consortia.
  • The operation license was issued for the interim spent fuel storage facility at the Ignalina NPP.
  • The Company became the industry expertise center for capital construction project management.
  • The Multi-D ”Project Management System” Project was winner of the WNE AWARD competition.
  • JSC ASE EC became the first Russian company to be awarded the international 3rd grade certificate in the area of project, programme and portfolio management based on IPMA Delta model.
ROSATOM Strategic Goals
To reduce production
costs and lead time
Engineering Division Strategic Goals
2016 Headlines
  • Implementation of the Performance improvement programme for the industry design system based on the pilot project.
  • Installation of the reactor coolant pipe at the Novovoronezh-2 NPP power unit 2 was completed within 72 days. The previous achievements at the Rostov NPP Unit 4 and the Kalinin NPP Unit 4 were 96 and 127 days, respectively.
  • The period of installation of the primary circuit pipelines and equipment quick-detachable thermal insulation was reduced at the Novovoronezh-2 NPP from 111 to 8 days.
  • The period of elimination of non-conformances detected during the commissioning works at the Rostov-2 NPP Unit 4 was reduced from 153 to 90 days.
  • The amount of the Rostov-2 NPP as-built documentation accepted by the Customer at the first attempt increased from 56 % to 90 %.
  • The process of commissioning works performed at the Belarus NPP Unit 2 polar crane was improved, their period was reduced from 50 to 33 days.
  • The process of structural elements acceptance was improved at the Belarus NPP, the period of the as-built documentation (each structural element) review and agreement was reduced from 13 to 1,5 days, the period of structural elements acceptance was reduced from 4 to 1 day.
  • The time of the construction base arrangement was reduced at the Kursk NPP from 240 to 120 days.

2016 Headline
2016 Headline Numbers
share of the global NPP construction market
2017 Objectives
  • Sign up the contract for construction of Kudankulam NPP power units 5, 6.
  • Power start-up of unit 4 of Rostov NPP.
2030 Objectives
share of the global NPP construction market
2016 Headline Numbers
share of new businesses in the Division revenue
2017 Objectives
  • Upgrade and promotion of the Multi-D system.
  • Realize extra-functionality of Multi-D project management system.
  • Fulfil obligations under the contracts on RAW and SNF Facilities Construction and Upgrading, NRHF Decommissioning.
  • Sign new contracts on RAW and SNF Facilities Construction and Upgrading, NRHF Decommissioning on the global market.
  • Sign new contracts on research reactors.
  • Design a schedule of the preparatory works to obtain 4 grade certificate of project management competence based on IPMA Delta model.
2030 Objectives
share of new businesses in the Division revenue
2016 Headline Numbers
32.4 bln rub
2017 Objectives
  • Extend the project management information infrastructure on the Russian nuclear industry.
  • Implement deadline and cost management projects at the nuclear industry-specific capital construction facilities as part of the Industry expertise center activities.
2030 Objectives
Sustainable achievement of the goals, further action for strengthening the leadership and surpassing the annual goal’s indicators

1.2.3. Sustainable Development Agenda

Our performance are aimed at meeting the following sustainable development goals:

We are committed to 2030 sustainable development targets stated by the UN.

See http://www.un.org/sustainabledevelopment/

Sustainable Development Agenda*

  • We focus on nuclear and radiation safety of nuclear facilities, and we bear responsibility for our activities outputs.
  • All aspects of environmental safety are of material importance for us and thoroughly elaborated in designing of NPP construction. We perform systematic environmental control at construction sites.
  • We develop and implement innovative technologies for project management and complex engineering facilities construction.
  • We are responsible employers and make a significant contribution into social the and economic development of the regions of operation.
  • We are transparent and accountable to shareholders, consumers, partners, suppliers, employees, population of regions of presence and other stakeholders.
  • We assist to building-up a peaceful and open society to provide for sustainable development, strive for constructive interaction with stakeholders in all material aspects of operations and support achievement of sustainable development goal in all countries.
* Being the Engineering Division of ROSATOM, we are also committed to Rosatom Sustainable Development
(GRI 102-20)

In the Engineering Division the social area is in the responsibility of the vice-president for personnel management and administrative work, economics and finance – in the responsibility of the senior vice-president for economics and finance, ecological area – in the responsibility of the director for quality management.

Next section
Value Creation Chain This section includes description of The Engineering Division Position in the ROSATOM Value Creation Chain and interactive scheme of the Division business model.
Previous section
Strategic Analysis of External Environment This section includes interview with Vice-President for Development Ivan Borisov on the implementation of the strategy. Interview is followed by PEST-analysis.