In a move that promises to reshape the nuclear energy landscape, Plzeň’s Škoda JS a.s., part of the ČEZ group, has signed a memorandum of understanding with the British company Rolls-Royce SMR Limited. The agreement focuses on the manufacturing and supply of small modular reactors (SMRs), establishing a strategic partnership in this rapidly expanding sector of nuclear energy. This collaboration is a testament to the Czech Republic’s commitment to advanced energy solutions and could unlock substantial opportunities for businesses seeking commercial real estate.
Plzeň: A Growing Hub for Advanced Manufacturing
Škoda JS, a leading European manufacturer and supplier of equipment for nuclear energy, will collaborate with Rolls-Royce to ensure a broad spectrum of supplies for the SMR primary circuit, not only for Czech projects but also globally. František Krček, CEO of Škoda JS, emphasized the company's long-term investment in modern machinery, preparatory work, and production process qualifications specifically for SMRs. This deep commitment underscores Plzeň's evolving role as a hub for advanced manufacturing and highlights the immediate need for sophisticated industrial facilities and warehouse solutions.
Driving Demand for Industrial and Office Space
The development and deployment of SMRs align with the Czech energy concept and are gaining traction worldwide. This ambitious project will inevitably drive increased demand for high-quality industrial and production facilities, as well as modern office spaces for engineering and administrative teams. The establishment of a joint working group of experts from both companies, regularly discussing the common project, further indicates the tangible progression towards active development and future construction phases, requiring substantial logistical and operational infrastructure within the Plzeň region.
Strategic Investments Fueling Economic Growth
Škoda JS is well-positioned for this expansion, backed by significant support from its owner, ČEZ, to invest further substantial resources into the SMR sector. The company plans to integrate both its manufacturing and engineering capacities into the project. Financially, Škoda JS reported a 16 percent increase in operating profit to 287 million CZK last year, with revenues rising nearly 20 percent to 3.92 billion CZK. The volume of signed orders also surged by 34 percent to 5.13 billion CZK year-on-year, primarily driven by engineering and service for nuclear power plants. This robust financial health and increasing order book signal a company poised for significant physical expansion and a sustained need for various types of commercial properties.
Broader Impact and Future Opportunities in Plzeň
Beyond SMRs, Škoda JS boasts a rich history, having previously manufactured and supplied 21 complete VVER 440 nuclear reactors. The company is also actively involved in other major projects, including the construction of a new block at the Dukovany nuclear power plant with South Korea’s KHNP, and contributing to the commissioning of the fourth block of the Mochovce nuclear power plant in Slovakia. These ongoing large-scale engagements reinforce Plzeň’s strategic importance in the nuclear sector and ensure a consistent demand for industrial and office real estate, making the city an attractive location for businesses looking to rent or invest in commercial properties within a thriving industrial ecosystem.
Source: e15.cz
