TVO has high-level expertise regarding all phases of the fuel procurement process. TVO procures its fuel through a decentralized supply chain, entering into negotiations and making procurement contracts with each separate supplier at the various stages of the fuel production chain. There are several suppliers for each stage of the chain, and the procurement operations are regularly subjected to competitive bidding.
Furthermore, the composition of the fuel and the manner in which it is used are designed by TVO itself. The policy chosen by TVO clearly strengthens the company’s position as Finland’s leading supplier of nuclear power. Procurement operations are based on long-term contracts with leading suppliers. These companies have mining operations in many countries. If required, TVO purchases additional batches and services from the market, the developments of which are followed actively. The majority of the uranium procured by TVO comes from Kazakhstan, Canada, and Australia, and the fuel elements ordered by the company are constructed and assembled in Germany, Spain or Sweden.
TVO subjects fuel suppliers to strict evaluation
TVO employs a supplier evaluation method and only procures uranium and nuclear fuel refining services from suppliers who have passed the evaluation process. A systematic evaluation process precedes the closure of each supply contract. In addition to the requirements set for the products, the process also considers the reliability and responsibility of the supplier.
TVO’s supplier evaluation also includes active monitoring and evaluations at fixed intervals. Remote monitoring in Finland and excursions to production sites both provide TVO with an opportunity to examine the suppliers’ practices and, when necessary, to demand that changes are made. The purpose of supplier evaluation is to ensure that suppliers pay appropriate attention to environmental issues, the wellbeing of personnel, and quality management. Special issues concerning mines are also considered, such as the impact of operations on local people.
