The Engineering Division activities strategy is approved in 2014 and aims at achieving the Rosatom State Corporation strategic goals.

Leadership in the core business area

The main strategic goal of the Company in sight till 2030 includes keeping the leading position in the global market in terms of power units to be constructed and the market share with consideration of the market growth tendencies in the absolute terms and strengthening of competition between the well-established and emerging players (stepping-up of China and Korea activities). In addition to the competition strengthening, the NPP construction market is subjected to pressure from other generation sources — mainly by the solar and wind power that gained the global leadership in 2016 in terms of increment rates. This trend is caused by the reduced cost of the rated capacity kilowatt of the alternative power and consequently by the reduced LCOE rate. In 2016, the anticipated growth rates were revised for the share of renewable power sources in terms of its increase, while for the LCOE parameter, the more dynamic decrease is anticipated.

Comparison of LCOE of Different Power Sources, USD/(MW*hr)



High power NPP


Low and medium power reactors

Forecast for 2030 (from 2015)






Forecast for 2022 (from 2016)






Current value in 2016






[1]Depends on the technology

So, ensuring the competitive LCOE level as compared with the conventional and renewable power sources is the main challenge to be taken up by the Division to achieve the Company’s strategic aim in the business main core.

One of the main strategic elements aimed at reducing the cost and meeting deadlines of NPP construction, and consequently achieving the competitive LCOE level is the uniform information platform generated on the basis of Multi-D technology (see the detail in “Production Capital Management” section).

Operational stability

The purpose of the Division is to maintain the projects portfolio so as to ensure that the potential fluctuations in the portfolio due to suspension or cancellation of individual projects should not influence performance of liabilities under other projects.

To achieve this goal, the Division promotes the development of new business areas along with rapid accumulation of projects in the business main core. The priority is given to those market segments that may use competences in the business core, namely:

Construction of RAW and SNF management facilities, NRHF decommissioning. The Company possesses its own specialized engineering&technological competences, full-fledged competences in production of back-end specialized equipment. Besides, the experience and references of NUKEM Technologies and JSC NIKIMT-Atomstroy in the area of decommissioning projects implementation facilitate the efficient work in this market segment.

Construction of research reactors, low- and medium-power reactors High power NPP construction management competences can be directly used in implementation of research, low- and medium-power reactors projects. Moreover, construction of these facilities is often the national economy’s first step to found the full-fledged nuclear power business. Thus, this is a prospective opportunity to build-up the projects portfolio in the business core rather than an independent business only.

Provision of PMC-services The available own information platform to ensure the complex engineering facilities construction management and future facilities management throughout the whole lifecycle facilitates provision of consulting services to both nuclear power companies and non-nuclear businesses. In 2016 the first non-industry contract was received for PMC-services. Since the global market of complex engineering objects construction is much more widespread than that of NPP construction, the PMC-services market is one of the Company’s key areas in terms of its business sustainability in the long-term perspective.

Financial sustainability

The Engineering Division does not require Rosatom State Corporation financial support and is able to create additional resources for development of other divisions. The strategic aim is to maintain this condition.

Goals of Rosatom SC

Goals of ASE Group of Companies

Goal 2030

Contribution of 2016

Growth of the international market share

Leadership in the core business area — high power NPP construction

— Keeping the leading position on the global market in terms of power units to be constructed and the market share by means of providing the market with competitive solutions

share on the NPP market


share on the NPP market


New products for Russian and international markets

Operational stability (diversification)

— Reducing the impact of potential fluctuations in the project portfolio due to suspension/cancellation of individual projects on performance of liabilities under other projects by means of business expansion in the new market segments.

share of new products in the revenue


share of new products in the revenue


Reduction of the products prime cost and processes duration period

Financial sustainability

— The business that is capable to create an additional resource for other divisions development by means of growth of processes efficiency and productivity

Annual growth rate of indices

labor efficiency


Strategy implementation

Rosatom State Corporation Strategic Objectives

The Division Strategic Objectives

Results of the year of 2016

Indicators of the year of 2016

Tasks set up for 2017

Tasks set up to 2030

Enhanced penetration to global markets

Leadership in the core business area, i.e. NPP construction

— The first-of-a-kind power unit is connected to the grid at the first GenIII+ Novovoronezh NPP.

Units 1,2 are started up at the Kudankulam NPP

— The contract preparatory works for El-Dabaa NPP construction in Egypt are finalized.

Share of the global NPP construction market is 31 %

— The contract is signed for construction of Kudankulam NPP power units 5&6.

The power start-up of Rostov NPP power unit 4 is implemented.

At least 1/3 of the global market of the NPP construction

New products for the Russian and international markets

Operational sustainability (diversification)

— The out-of-the-industry PMC-contract is signed for creation of the information tool for monitoring of project implementation period of high-speed network “Moscow-Kazan” with a strategic customer — JSC “High-speed networks”, a subsidiary of JSC “Russian Railways”.

— The works for UIS implementation at the stage of facility operation are launched in collaboration with the Rosenergoatom Concern.

— The tender for the Kozloduy NPP radioactive waste storage facility construction and the Kozloduy NPP power units 1-4 equipment dismantlement projects is won by Nukem Technologies, member of the German-Bulgarian and German-Russian Consortia.

— The operation license is issued for the interim spent fuel storage facility at the Ignalina NPP

— The Company became the Industry expertise centre for capital construction project management.

— The “Multi-D Project Management System” Project is winner of the WNE AWARD competition.

Extra-core business share of the revenue is 12 %

— Active development and promotion of Multi-D platform including non-nuclear markets results in at least one new contract.

— The functional possibilities of Multi-D platform are extended at the stage of object operation.

— Current obligations in RAW and SNF management facilities construction projects and NRHF decommissioning are implemented, new contracts (at least one) are obtained at the foreign market.

— New contracts are obtained in the research reactors prioritized market sector.

Extra-core business share of the revenue is 30 %

Reduction of production costs and processes time length

Financial sustainability

— The programme of actions to enhance the industry efficiency on the basis of pilot design

is implemented.

— Installation of the reactor coolant pipe is completed

At‑Novovoronezh-2 NPP power unit 2 over 72 days. The recorded achievement at Rostov-4 was 96 days.

— The period of installation of the primary circuit pipelines and equipment quick-detachable thermal insulation is reduced at the Novovoronezh‑2 NPP from 111 to 8 days.

— The period of elimination of non-conformances detected during the commissioning works at the Rostov‑2 NPP (Unit 4) is reduced from 153 to 90 days.

— The amount of the Rostov-2 NPP as-built documentation accepted by the Customer at the first attempt increased from 56% to 90 %.

— The process of commissioning works performed at the Belarus NPP Unit 2 polar crane is improved, their period is reduced from 50 to 33 days.

— The process of structural elements acceptance was improved at the Belarus NPP, the period of the as-built documentation (each structural element) review and agreement is reduced from 13 to 1,5 days, the period of structural elements acceptance was reduced from 4 to 1 day.

The time of the construction base arrangement is reduced at the Kursk-2 NPP from 240 to 120 days.

— The Company became the first Russian company to be awarded the international 3-grade certificate in the area of project, programme and portfolio management based on IPMA Delta model.

The project for development of optimized projects solutions was implemented on the basis of the pilot project using flexible project management technologies “Agile”.

EBITDA — 32,4 bln. RUR

— The project management information infrastructure is extended on the industry-wide scale.

Implementation of deadline and cost management projects at the industry-specific capital construction facilities is continued as part of the Industry expertise centre activities.

— Preparatory actions are taken to facilitate the award of the international 4-grade competence certificate in the area of project, programme and portfolio management based on IPMA Delta model.

Annual ahead-of-target values