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Hinkley Point C Supply Chain Update

Wednesday 23rd March, 2016

Although a final investment decision for Hinkley Point C is yet to be announced, we are seeing plenty of evidence of continued commitment and progress towards the FID.

In the communiqué published by the British and French Government’s after the recent Franco British summit, it states: This major strategic project is a pillar of the bilateral relationship and will be a key aspect of Britain’s energy policy, offering the guarantee of safe, competitive, decarbonized energy by 2025. It confirms the ability of our two countries to produce leading industrial projects together. Lastly, it marks an essential step forward in the recovery of nuclear energy in Europe, in support of the fight against climate change.
Locally we note that:
  • EDF Energy and contractor teams are continuing to prepare for mobilisation on the Hinkley Point C site with an increased demand for services from Somerset Larder (interim catering contract) and Crosville Motor Services (interim bus contract). We also would expect a likely increase in demand for worker accommodation locally following a final investment decision.
  • Significant office space in Bristol has been leased with the intention for the EDF Energy Delivery Team to be based there.
  • The first concrete batching plant has been completed and the second is now under construction.
As with all large and complex infrastructure projects, it is important to consider the whole picture and not just individual stories when trying to assess progress. To find out the most up to date position, blogs and articles on the project take a look at the edfenergy.com/hpc website.

The Hinkley Supply Chain managed by Somerset Chamber of Commerce is constantly working behind the scenes with a wide range of stakeholders to support South West and South Wales businesses to prepare them to be able to bid and win future contracts. This is in addition to the other extensive business to business activities we undertake on our members behalf including representation and events.

Moving Forward

For those suppliers actively seeking out Hinkley Point C opportunities, the challenge continues to be looking after existing customers and markets, whilst also developing knowledge and contacts for the new nuclear market. We recommend you make full use of the information published about work packages on www.hinkleysupplychain.co.uk and review the case studies that illustrate how suppliers have already engaged.

The Hinkley Supply Chain Team now manages 3,100 supplier registrations for Somerset and the South West, with declared supplier capabilities mapped against Hinkley Point C project requirements. We have worked with EDF Energy and Tier 1 teams to assess over 26 work packages with suitable supplier matches identified. Local and regional suppliers are now in pole position for over £250million of contract value, with some interim contracts already live. Two supplier steering groups chaired by the Somerset Chamber of Commerce and EDF Energy oversee the effectiveness of the supply chain engagement, with meetings in March seeking to clarify more opportunities for suppliers.

We would expect to see the Associated Development projects becoming live later this year (subject to FID) and all will require support both in terms of labour and the supply chain. These projects include the Junction 23 Park & Ride, construction of Hinkley Point C Campus accommodation, the Combwich Wharf upgrade and the Temporary Jetty.

Raising Awareness of Hinkley Point C Construction in Devon

Over 140 companies from across Devon gathered recently at three different venues to raise awareness of the Hinkley Point C construction. In partnership with Heart of the South West LEP, the events brought together Jamie Driver, EDF Energy’s Nuclear New Build Senior Supply Chain Engagement Manager, along with key representatives from the Hinkley Supply Chain Team in order to outline the registration process and uncover high value opportunities for Devon businesses.

Chris Langdon, Project Lead for the Somerset Chamber’s Hinkley Supply Chain Team, summed up the opportunity and likely challenges for Devon businesses. Following the event, he said, “This was a great opportunity for companies who have not yet registered on the Hinkley supply chain portal to understand the scope and scale of the opportunities that are available to them.
“We were delighted to welcome so many suppliers to the event. Suppliers will  need to show leadership in making sure they bring the necessary safety, quality and competitiveness in time for  when the early procurement process begins, and this will be ahead of any invitation to tender.”

Alan Windsor, Supply Chain Data Co-ordinator for the Hinkley Point C project,  said, “The amount of interest shown from within the county of Devon proves thatthe appetite for new business is alive and well. By attending these sessions, companies within the region can be prepared for the opportunities this exciting project will present.”

Baseline Supplier Diagnostic

What can you do now to put your company in a better position to be considered for contracts at Hinkley Point C? Things worth considering include the following:
Business Strategy – Do you have a defined vision and strategy that is formally deployed to all staff, including those on the front line?

Project Management – Do you have an identified team with formal processes in place to respond to opportunities at Hinkley Point C and the different procurement procedures likely to be faced?

Employee Development – Are employees’ training needs identified & documented on an individual basis and supported, tied in with the company business strategy? What are the opportunities for your staff to upskill?

Bidding & Tendering – Do you currently have a strong bid team in place? If all your work normally comes through ‘word of mouth’, how do you propose to respond to more formal mechanisms to secure Hinkley Point C contracts?

Safety & Culture – Are your safety standards deeply embedded in your leadership and staff teams, or is the certificate stuck on the wall and forgotten about? What is your safety culture and do you continually strive to improve it?

All these topics can be addressed by businesses now to ensure they are ‘Hinkley ready’, putting them in a strong position to uncover opportunities and bid for work. Should you need any help, please do not hesitate to contact the Hinkley Supply Chain Team on 01823 443425 and we will assist you directly or refer you to relevant specialists, as required.

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