Exporting large capital equipment: A case study of nuclear technology transfer

The purpose of this article is to examine the marketing variables affecting the exportation of nuclear power plants by U.S. manufacturers. It is stated that with the demise of the nuclear industry within the United States following the TMI-2 accident in 1979, U.S. nuclear power plant suppliers have been forced to look externally to expand their market. Currently, U.S. suppliers of nuclear power plants are concentrating their export marketing efforts in developing countries and newly emerging Asian countries. However, the United States faces stiff competition from other industrialized nations such as Canada and France in the nuclear power plant export markets. The paper analyzes the marketing variables involved in exporting nuclear power plants, including the site selection process, legal variables, and financing. It is noted that during the early 1970s, the export market for nuclear power was essentially a seller's market. In recent years, marked with the increasing debt repayment problems facing developing countries and a lack of nuclear power plant orders in the United States, the export market has become a buyer's market. The paper also evaluates what changes are needed in the U.S. nuclear power industry in order to remain competitive in the exporting of nuclear power abroad. Changes are recommended in reactor design, the licensing process, adaptation to legal and political environments, and joint financing in cooperation with the host country.