Outline Emerges for Eight Nuclear Reactors in U.S. Investment — Westinghouse Stake, Cost Risks Remain
Exclusive reports that the U.S. has requested $120 billion of the total $350 billion in investment in the U.S. be allocated to building eight nuclear reactors sent nuclear and construction-related stocks surging. Orbitech hit its upper limit, KEPCO E&C rose more than 16%, Daewoo E&C gained 14%, and Hyundai E&C rose more than 6%. There was also talk that a framework could be signed and announced as early as September 18.
Panelists noted that the U.S., which had long refrained from new nuclear investment due to radiation leak concerns, has shifted course amid surging power demand driven by data centers, and assessed that since South Korea (along with China) is effectively the only country in the world capable of building nuclear plants for the U.S., this development could be a major source of momentum for Korean companies.
However, several risk factors were also flagged. Nuclear projects worldwide tend to see costs rise by more than three times the initial budget on average and completion delays of roughly three times the original schedule, raising the likelihood that total investment could exceed initial plans. It was also noted that under past agreements, Westinghouse holds a substantial share of intellectual property rights related to overseas nuclear exports, leaving the task of renegotiating those agreements or securing a stake in Westinghouse as part of this U.S. investment.
It was also raised as a negotiation variable that the U.S. side is reportedly requesting 'project-by-project settlement' instead of the existing 'umbrella' method that consolidates profit and loss across projects. Panelists further noted that construction in the U.S. faces stringent labor regulations and costs that could surge amid the infrastructure investment boom including data centers, making cost management capability more important than order volume alone. They stressed that given South Korea is effectively an irreplaceable supplier, it should take a more assertive stance in negotiations.