Woori Technology Signs VMI Agreement with Korea Hydro & Nuclear Power for Nuclear Power Plant Components

Woori Technology announced on the 10th that it has signed a Vendor Managed Inventory (VMI) agreement with Korea Hydro & Nuclear Power (KHNP). Under the agreement, Woori Technology plans to supply certain components for nuclear power plant control and instrumentation as early as next month.

Vendor Managed Inventory is an inventory management model in which a supplier pre-stocks critical components based on customer demand forecasts and delivers them quickly upon customer request. The customer pays the corresponding procurement costs only after the components are put into use.

This agreement primarily covers long-term inventory management and supply arrangements for components related to nuclear power plant control and instrumentation systems supplied by Woori Technology. According to the company, this marks the first time KHNP has signed a VMI agreement with a small and medium-sized enterprise.

Woori Technology stated that the agreement will help improve the stability of its nuclear power plant control system production and supply plans, and will also make KHNP one of its long-term revenue sources. The first batch of products planned for delivery is power supply units. As these products have relatively short life cycles, establishing long-term inventory is critical to ensuring supply continuity.

The company expects that if the scope of products covered by VMI expands in the future to encompass the entire range of nuclear power plant control and instrumentation systems, including CPU boards, it could generate over KRW 10 billion in new contract value annually.

Recently, increased investment in large-scale high-tech infrastructure such as AI data centers and semiconductor clusters has driven up electricity demand, and discussions on constructing new nuclear power plants are also progressing. These facilities have high requirements for power supply capacity and power quality, and nuclear power is regarded as one of the viable options for stable power infrastructure.

Woori Technology stated that if future plans for new nuclear power plant construction become further clarified, the company's order growth momentum is expected to strengthen further as a key supplier of Man-Machine Interface Systems (MMIS) and Distributed Control Systems (DCS) for domestic nuclear power plants.

A Woori Technology official stated that this VMI agreement is the result of the company's efforts to establish a long-term partnership with KHNP and stably supply core nuclear power components. The official also noted that the company has previously signed a Long-Term Service Agreement (LTSA) for MMIS and DCS with Doosan Enerbility, and will continue to ensure the supply of related systems by combining this with the VMI arrangement with KHNP.