They Faced Bankruptcy; Now They are Favorites for Building Krško NPP Unit 2

The American nuclear giant Westinghouse, once on the verge of collapse, is returning—with Canadian capital and a South Korean partner—as a key player for Krško NPP Unit 2.

In the process of selecting technology for the second unit of the Krško NPP Unit 2, the American company Westinghouse Electric Company is one of the potential partners. This is a company with a long history of technological innovation, but in 2017 it was marked by bankruptcy, directly connected to difficulties in constructing nuclear reactors.

The decision on a partner for the Krško NPP Unit 2 project represents a long-term strategic commitment to Slovenia’s energy future.

According to the World Nuclear News portal, the pool of possible technology suppliers for Krško NPP Unit 2 has narrowed, with Westinghouse among the remaining candidates. The choice of partner for a project of this scale will influence the country’s energy, economic, and political development.

Historically, Westinghouse has been a pioneer in electrification—winning the “war of currents” against Thomas Edison, as described by Time magazine—and a company that went through bankruptcy in 2017. This bankruptcy was due to financial problems with AP1000 reactor construction projects, the same type the company is now offering to Slovenia.

The key question revolves around risk assessment and reliability. On one hand, Westinghouse, as they state in their history, built the world’s first commercial reactor, and its technology, according to the International Atomic Energy Agency (IAEA), powers almost half the world’s nuclear power plants. On the other hand, the 2017 bankruptcy and associated multi-billion-dollar cost overruns in U.S. projects, widely reported by outlets such as The Ecologist, are significant considerations.

After bankruptcy, the company underwent major structural changes. It now has a new ownership structure: a Canadian consortium comprising Cameco and Brookfield, as reported by World Nuclear News. It also formed a strategic partnership with South Korean construction company Hyundai Engineering & Construction.

Founded in 1886, Westinghouse’s history began with victory in the “war of currents” over Thomas Edison, laying the foundations for the modern electric grid.

The post–World War II period was marked by a key milestone: a shift toward nuclear energy, launching the world’s first commercial pressurized water reactor in 1957. This technology became the industry standard, used in nearly half the world’s nuclear power plants, including Krško’s first unit.

By the late 20th century, due to financial difficulties, the original conglomerate shifted away from nuclear, selling its nuclear division in 1999. That division became today’s Westinghouse Electric Company, specializing exclusively in nuclear technology.

Structure, size, and global footprint

Today, Westinghouse Electric Company LLC is a global enterprise headquartered in Cranberry Township, Pennsylvania. According to its own figures, the company employs more than 11,000 people and operates in 21 countries around the world.

Its activities span the full lifecycle of a nuclear power plant—from design and construction (AP1000 and smaller AP300) to fuel production, maintenance, decommissioning, and waste management. This diversified business and the global presence enable the company to act as a complete solution provider to the nuclear industry.

The year 2023 marked a key turning point in the modern history of the company. As reported by World Nuclear News, the company was transferred to the ownership of a Canadian consortium, consisting of Brookfield Renewable Partners with a 51% stake and Cameco with 49%. The value of the overall deal was estimated at USD 8.2 billion, according to the same media outlet.

This takeover was a strategic move that created a vertically integrated nuclear player: Westinghouse brings technology and services, Cameco, as one of the world's largest uranium producers, provides the energy supply, and Brookfield Renewable Partners, part of one of the world's largest asset managers, brings financial strength and access to capital.

Such a structure can offer a more complete solution to potential customers. As the American Security Project notes, the new owners bought Westinghouse as a strategic asset at a time of global energy upheaval. This increases the likelihood of a long-term investment in the company.

The "new" Westinghouse is no longer just an American company but a North American nuclear player with Canadian ownership and capital backing, which, as Atomic Insights points out, gives it greater stability than in the past.

Passive safety – revolution or risk?

AP1000’s hallmark is its passive safety systems. Instead of relying on active components like pumps or diesel generators, AP1000 uses natural forces—gravity, natural circulation, and compressed gas.

Comparison: Westinghouse AP1000 vs. EDF EPR

Source: IAEA, World Nuclear Association, MIT, The Ecologist

In the event of a complete power failure, the valves open automatically, and a huge reservoir of water begins to flow by gravity onto the reactor's steel containment vessel, cooling it. According to the company, this system should be able to cool the reactor for at least 72 hours without an external power supply or human intervention.

Despite this design, there are concerns. Critics such as nuclear engineer Arnie Gundersen, whose views were summarized in The Ecologist magazine, point out that the AP1000 has a less robust external containment structure than traditional reactors such as the French EPR in exchange for passive safety.

For Slovenia, the comparison between the AP1000 and the EPR is crucial, because it is not just about technology but about two different philosophies of nuclear safety. The AP1000 relies on simplification and passive safety, while the EPR relies on redundancy and robustness with more independent, active safety systems and a thicker double containment structure.

The experience from operating AP1000 plants is mixed. In China, as World Nuclear News reports, four AP1000 reactors are in operation as of 2018, achieving high operating results after initial problems. IAEA data for the Sanmen 2 reactors for 2024 shows an annual load factor of 96.6 percent.

Status of AP1000 projects worldwide

2025

Source: World Nuclear News, The Register, industrial sources

In the US, the two reactors at Vogtle, which are due to start operating in 2023 and 2024, have become an example of a project with major delays and more than double the cost.

Controversies and failures

In March 2017, Westinghouse, then owned by Toshiba of Japan, filed for bankruptcy. This was not due to technological failures but solely to the financial burden caused by cost overruns in the construction of four AP1000 reactors in the US.

Key factors in the failure were risky fixed-price contracts where Westinghouse took most of the financial risk, the problems of "first-of-a-kind" projects where the reactor design was not finalized at the start of work, the fatal business decision to buy the construction company CB&I, thereby taking all the construction risks, and systemic mismanagement of the projects with unrealistic timetables.

The Vogtle project in Georgia, originally estimated at 14 billion dollars, ended up costing more than 34 billion dollars and was completed seven years late. And the V.C. Summer project in South Carolina was finally abandoned after spending nine billion dollars, triggering the Nukegate scandal in which several executives were sentenced to prison terms for fraud.

The consequences of the US debacle were painful for Westinghouse, but these lessons have led to the formulation of its strategy today. The company has been forced to radically restructure its business model. The most significant change is the withdrawal from construction risk, as the company no longer assumes the role of prime contractor of the construction part.

Their chairman made it clear after the bankruptcy, as reported by World Nuclear News, that the company was exiting the construction business. In addition, they now insist that the design of the reactor must be 100% finalized and approved by the regulator before construction can start. The US experience has led the company to change its strategy, reflecting the realization that their primary role is not to manage construction projects but to supply technology, and they have sought a partner with a proven track record.

It was found in the South Korean company Hyundai Engineering & Construction. All the indications are that today's Westinghouse is a direct product of this crisis, and its strategy is entirely focused on avoiding a repetition of the mistakes of the past.

Global Projects and Strategic Partnerships

After emerging from bankruptcy, Westinghouse has embarked on a renewed business model based on separating the technology role from the construction role. Key projects include a strategic project in Texas and a partnership with South Korean construction giant Hyundai.

Hyundai Engineering & Construction (HDEC) is a global construction giant with credentials in the nuclear industry. Their portfolio, as cited by The Korea News Plus, includes the construction of 18 reactors in South Korea and the role of main contractor for the four-reactor project in Barakah in the United Arab Emirates. This project, according to the Times of India, was completed on time and within budget.

This partnership is also foreseen for the Krško NPP Unit 2 project and creates a clear division of roles: Westinghouse provides the technology, and Hyundai brings expertise in construction management. The evaluation of the bid therefore no longer includes only Westinghouse but a Westinghouse-Hyundai consortium.

Relevance for Slovenia

Westinghouse is setting up a network of local and regional suppliers in Europe. In Poland and Bulgaria, where they are also planning to build AP1000 reactors, they have already signed Memoranda of Understanding with dozens of local companies, according to World Nuclear News.

For Slovenia, this means two things.

Firstly, strengthening the regional supply chain could allow some of the equipment for Krško NPP Unit 2 to be supplied from nearby countries.

Secondly, as Westinghouse points out, this opens up opportunities for Slovenian companies to join this network.

Today's Westinghouse is structurally different from the one that went bankrupt in 2017. Under new, financially strong ownership, it is stabilized, its credit ratings have improved, and a strategic partnership with South Korea's Hyundai addresses past shortcomings in construction project management.

To read the originally translated article, visit DELO’s website.