Large thermo-power plants told to use local equipment

VietNamNet Bridge Ten local mechanical companies will design and manufacture supplementary equipment for three large-scale thermal power plants namely Quang Trach 1, Song Hau 1 and Quynh Lap 1 under the Governments policy.

The Government on November 29 issued the mechanism for pilot of design and production of thermoelectric equipment at home in the period from 2012 to 2025. Under the policy, locally-manufactured equipment for Quang Trach 1 and Song Hau 1 plants will make up over half of the total value of the supplementary equipment supplied by mechanical engineering companies, while the percentage will be more than 70% for Quynh Lap 1. Apart from major equipment such as boilers, turbines and generators, supplementary equipment such as the coal and oil feeding systems, ash and smoke elimination, desulphurization, wastewater treatment and fire control equipment will be produced at home. Equipment producers include the National Research Institute of Mechanical Engineering, Vietnam Machine Installation Corporation, Machines and Industrial Equipment Corporation, Vietnam Industrial Construction Corporation, Construction Machinery Corporation, and Dong Anh Electrical Equipment Manufacturing Joint Stock Company. Others in the list of equipment suppliers also include Agriculture and Irrigation Mechanization Electrification Construction Corporation, PetroVietnam Construction Joint Stock Corporation, PetroVietnam Technical Services Corporation, and Doosan

Heavy Industry Vietnam. In addition, enterprises in cooperation with technology universities in Hanoi, Danang and HCMC and the universities with appropriate specialties are encouraged to design and manufacture supplementary equipment for the aforesaid thermal power plants. The pilot of domestic design and production of thermoelectric equipment is aimed to help mechanical manufacturing firms improve their capacity, moving towards technological independence, and promote development of the local mechanical engineering industry. Speaking to the Daily, Do Huu Hao, chairman of the Vietnam Federation of Mechanical Engineering Associations, said local mechanical enterprises so far had been playing the role of a subcontractor, processing equipment for thermal power projects at home. If they joined forces, they could produce 60% of the supplementary equipment that local thermal power plants needed, reducing the dependence on imported equipment, he said. Equipment cost makes up around 70% of the total investment in a thermal power project. Raising the localization rate of equipment will offer chances for domestic mechanical manufacturers as Vietnam will have 60 more thermal power plants worth nearly US$100 billion from now to 2030. Quang Trach 1 thermal power plant with a capacity of 1,200MW is developed by Vietnam National Oil and Gas Group (PVN). It will start generating electricity in June 2015. Song Hau 1 thermal power plant is also a project of PVN. It has a capacity of 5,200MW and is now under construction. Meanwhile, Quynh Lap 1 thermal power plant is designed with a capacity of 600MW. Its owner is Vietnam National Coal and Mineral Industries Group. Source: SGT