Chinese government has suspended nuclear project approval and upgraded nuclear safety standards continuously since the Fukushima nuclear plant leak accident in 2011. The two plans which determine the future of Chinese nuclear power construction, Chinese Medium- and Long-term Development Plan for the Nuclear Power Industry (2005-2020) and Nuclear Safety Plan, are expected to be approved in April of 2012 and then Chinese government will restart the approval for new nuclear power project.

Jiangsu Shentong is the monopolized supplier of nuclear power butterfly valve and unclear power ball valve in China. By the end of 2011, the orders for nuclear power valve obtained by Jiangsu Shentong amounted to over RMB 200 million and most valves are required to deliver in 2012 and 2013 according to the orders. Though its performance is not influenced by the suspense of nuclear power approval, Jiangsu Shentong will surely benefit from the approval restart.

It is expected that Chinese government will pay more attention to nuclear safety and nuclear market access will be more stringent, as a result, Jiangsu Shentong’s monopoly advantage in nuclear power valve segmented market will be more apparent. It requires about half year for Jiangsu Shentong to get orders officially from start approval due to some bidding procedures, and it takes another one or two years to deliver its goods to its customers since the receipt of orders.