Taewoong, a company specializing in forging, is aiming for follow-up orders in the small modular reactor (SMR) business of the U.S. nuclear firm TerraPower. After entering the TerraPower supply chain with its first order in June, the company is now looking to secure additional quantities based on its existing transaction record and vendor registration. The company anticipates that discussions for follow-up orders could materialize within the next three to four months.
According to the financial investment industry on the 15th, Taewoong is pursuing a plan to supply additional quantities related to TerraPower's Natrium SMR project through the Canadian company Marmen. TerraPower, which is constructing its first commercial sodium SMR in Kemmerer, Wyoming, announced 12 new supply contracts at the end of last month, expanding its supply chain. Among these, Marmen is responsible for the design of the nuclear fuel transfer lift.
Marmen is a Canadian company that processes and manufactures large components for the nuclear, aerospace, and heavy industries. TerraPower previously selected Marmen as the manufacturer of the rotating plug for the sodium SMR. Taewoong entered the TerraPower supply chain for the first time by winning an order for related forged products from Marmen in June. Discussions for the order with TerraPower began in November of last year and took about seven to eight months to finalize.
The company explains that the situation is different this time. With established transaction records related to TerraPower and completed vendor registration, discussions for follow-up quantities could progress more quickly than during the initial order. While additional orders have not yet been confirmed, the company believes there is a strong possibility that negotiations could be finalized within three to four months. A Taewoong representative stated, "There is sufficient potential for additional orders, and we expect progress soon."
The characteristics of forged products for nuclear power also support the likelihood of follow-up orders. Nuclear components require high quality standards and certification processes, making it difficult to replace suppliers once a company has participated in the initial development and delivery process.
Existing collaboration with Marmen is also a competitive advantage. Taewoong reportedly supplied forged rings for SpaceX and Blue Origin launch pads through Marmen, amounting to approximately 15 billion won from 2022 to 2023. The expansion of the trading relationship with Marmen from the aerospace sector to the nuclear sector increases the likelihood of securing additional supply opportunities in future large projects.
Taewoong is also solidifying its collaboration with HD Hyundai Heavy Industries in the SMR sector. HD Hyundai Heavy Industries was selected as the preferred negotiator for the production and supply of key equipment for sodium reactors in May and has recently decided to invest 238.6 billion won in establishing a dedicated SMR equipment manufacturing plant at its Ulsan shipyard.
This has fostered an atmosphere of expanding cooperation between Taewoong and HD Hyundai Heavy Industries. Discussions among the management teams of both companies have recently taken place, with practical meetings scheduled for this month. Building on their existing trading relationship in the shipbuilding sector, including forged products for ship engines, they are looking to broaden their collaboration into the SMR field to explore new order opportunities.
With the expansion of orders, expectations for improved performance are also growing. IBK Investment & Securities projects Taewoong's revenue for this year to reach 394.6 billion won, with operating profit estimated at 21.5 billion won. This represents a 12.8% increase in revenue and a 328.9% increase in operating profit compared to the previous year. Researcher Yoo Chang-geun stated, "This year is expected to be a turning point for performance recovery, as high-margin orders in the nuclear and power generation sectors continue, leading to a clearer trend of performance improvement year after year."
* This article has been translated by AI.
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