Westinghouse Electric Company
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Westinghouse logo (designed by Paul Rand)
|Type||Private (Licensee of Westinghouse Electric Corporation)|
|Predecessor(s)||Westinghouse Electric (1886)|
|Founded||Monroeville, Pennsylvania, U.S. (1999 )|
|Headquarters||Cranberry Township, Butler County, Pennsylvania, U.S.|
|Key people||George Westinghouse, (Corporate namesake; founder of the Original Westinghouse (1886))
Danny Roderick, President and Chief Executive Officer
|Owner(s)||Toshiba (87%) (majority owner)
Fauske & Associates
Westinghouse Electric South Africa
WEC Welding and Machining
Westinghouse Electric Company LLC is a nuclear power company, offering nuclear products and services to utilities internationally, including nuclear fuel, service and maintenance, instrumentation and control and design of nuclear plants. Controlled by the Toshiba Group, Westinghouse's world headquarters is located in Cranberry Township, Butler County, Pennsylvania, United States.
- 1 Westinghouse Electric Company and CBS Corporation
- 2 History
- 3 New generation of reactors
- 4 International actions
- 5 Sale to Toshiba
- 6 Customer 1st
- 7 Move to Cranberry Township
- 8 References
Westinghouse Electric Company and CBS Corporation
Westinghouse Electric Corporation
Although not associated with the current CBS Corporation, Westinghouse Electric Company LLC uses the trademarks owned by Westinghouse Licensing Corporation, CBS' brand management subsidiary, under license, as is also the case with other Westinghouse licensees.
Westinghouse Electric Company was the primary sponsor in 2010 for the 90th anniversary celebration of KDKA, a radio station licensed to Pittsburgh, launched by the original Westinghouse on November 2, 1920, and which is now owned by CBS Radio.
For further chronological details, see Timeline of company evolution
Original Westinghouse history
- 1886: Westinghouse Electric Company was founded by George Westinghouse; first patent filed for a 'System of Electrical Generation"
- 1888: George Westinghouse acquired patents from Nikola Tesla for a polyphase AC system and an induction motor.
- 1889: Westinghouse Electric Company changed its name to Westinghouse Electric and Manufacturing Company.
- 1890: Westinghouse installed the first long-distance power transmission lines. They covered 14 miles between Willamette Falls and Portland, Oregon.
- 1891: Westinghouse installed the first high-voltage transmission line connecting San Antonio Canyon with Pomona and San Bernardino, California.
- 1893: Westinghouse lit up Chicago World's Fair with a quarter million lights; demonstrates a polyphase AC generation and distribution system.
- 1894: Westinghouse introduced the first practical polyphase induction motors that could provide convenient power for industry.
- 1900: Westinghouse enterprises employ 50,000 employees; built the first public-utility steam-turbine generator for Hartford (Connecticut) Electric Light Company.
- 1904: Westinghouse formed a six-man industrial research department at an East Pittsburgh lab.
- 1906: Westinghouse formally established a Research Division.
- 1909: Westinghouse introduced the first continuous-filament tungsten light bulb.
- 1910: George Westinghouse retired from the company.
- 1911: Westinghouse introduced a marine geared-turbine drive that powers the U.S.S. Neptune.
- 1914: George Westinghouse dies, his life work including 361 patents and the founding of 60 companies.
- 1915: Westinghouse was among one of the first U.S. companies to establish a pension plan for all employees.
- 1919: Westinghouse built the first U.S.-made diesel-electric marine propulsion plant.
- 1920: Westinghouse established modern broadcasting with station KDKA; demonstrated television in laboratory.
- 1922: Westinghouse established a working relationship with Netherlands based N.V. Heemaf to access the European market after this Dutch company introduced the no-brake-motor in 1921.
- 1926: Westinghouse developed a grid-glow tube, or "electric eye".
- 1931: Westinghouse electrified S.S. President Coolidge, the largest U.S. merchant ship of its time.
- 1932: Westinghouse announced the Ignitron mercury-arc rectifier.
- 1937: Westinghouse engineers created the first industrial "Atom-Smasher" as centerpiece of nuclear physics research.
- 1940-1944: Westinghouse ranked 21st among United States corporations in the value of World War II production contracts.
- 1945: Westinghouse Electric and Manufacturing Company changed its name to Westinghouse Electric Corporation.
- 1954: Westinghouse built the S2W reactor for the USS Nautilus, the world's first nuclear-powered submarine.
- 1960: Westinghouse built the A2W reactor for the USS Enterprise, the world's first nuclear-powered aircraft carrier.
- 1972: Westinghouse and Newport News Shipbuilding and Drydock jointly formed Offshore Power Systems to build floating nuclear power plants for Public Service Electric and Gas Company.
- 1984: Offshore Power Systems was shut down after completing none.
- 1995: Westinghouse bought CBS; began selling off other businesses.
- 1996: Westinghouse purchased Infinity Broadcasting; sells its defense electronics business.
- 1997: Westinghouse changed its name to CBS Corporation; sold its non-nuclear power generation unit to Siemens AG, which operated it in the US under the name Siemens Westinghouse Power Generation until 2005.
- 1998: CBS Corporation created a new subsidiary company called Westinghouse Electric Corporation to manage the Westinghouse trademarks.
- 1999: CBS Corporation sold its nuclear business to British Nuclear Fuels Limited (BNFL).
- 2000: CBS Corporation was merged into Viacom, thus putting an end to the Original Westinghouse. (Five years later, Viacom became CBS Corporation and spunoff its non-broadcasting assets as a new Viacom. The current CBS Corporation continues to operate the Westinghouse licensing division today.)
Westinghouse Electric Company's recent history
- 1999: Westinghouse Electric Company officially began operations as BNFL's nuclear power business.
- 2000: the ABB Group's nuclear power business, was purchased by BNFL and merged into Westinghouse.
- 2006: Westinghouse completed acquisition of PaR Nuclear/Ederer Nuclear Cranes, providing fuel and cask handling equipment systems. The Westinghouse Electric Company was also sold by BNFL to an investment group led by Toshiba.
- 2007: Westinghouse reached an acquisition agreement for IST Nuclear (ISTN) of IST Holdings. Acquires Carolina Energy Solutions (CES) and its affiliates Aggressive Equipment (AE), now WEC Machining; Construction Institute of America (CIA), now WEC Welding Institute; and Carolina United Services, now Carolina Union Services; acquires Astare, a French nuclear engineering company headquartered near Paris.
- 2009: Westinghouse acquired Nuclear Fuel Industries LTD, Japan's sole producer of nuclear fuel for boiling-water and pressurized-water reactors and CS Innovations, LLC, an Instrumentation and Control (I&C) nuclear product supplier to the digital I&C safety system upgrade market.
- 2010: Westinghouse announced their involvement in a new, ultra-large forging press in the United Kingdom to be built at Sheffield Forgemasters in Yorkshire; takes a major stake in Springfields fuel site in the United Kingdom which includes a permanent transfer of Springfields Fuel Limited ownership to Westinghouse.
- 2010: Westinghouse moved its world headquarters from Monroeville, Pennsylvania, to Cranberry Township, Pennsylvania.
During the 20th century, Westinghouse engineers and scientists were granted more than 28,000 US government patents, the third most of any company.
New generation of reactors
A revived interest in the nuclear power generation field led to Westinghouse's development of the AP1000 reactor, the first Generation III+ reactor to receive final design approval from the NRC. Four of these units are currently being constructed in China, with the first due to come on-line in November 2013.
In the United States, as of January 2009, six AP1000 plants have been ordered, and several other customers have selected the AP1000 as their preferred technology, should they decide to build new nuclear plants. Westinghouse and the AP1000 have been selected as the supplier and technology of choice for a combined total of at least 14 new plants announced by the NuStart Consortium, Duke Power, Progress Energy, Southern Nuclear and SCE&G.
Westinghouse Electric Company has several fully owned subsidiaries in Europe such as the European Service Center (also called Westinghouse Electric Belgium) located in Nivelles, Belgium, where equipment is prepared for projects throughout Europe. After the takeover of ABB Reaktor in Germany, Westinghouse transferred radiological storage activities located in Ladenburg, Germany, to the existing site in Nivelles, Belgium, which was extended. Soon after that extension, another expansion followed as employees in the Brussels office were also transferred to Nivelles. It is estimated that 200 people were working in Nivelles at the end of 2011.[who?]
In 2001, Westinghouse took over a company named Logitest in France that specialized in non-destructive inspection of nuclear steam generator plant for EDF. From there Westinghouse started to expand its business in France. The company Westinghouse Electrique France is now located in Orsay and Marseille. About 400 employees are now part of Westinghouse in France.
In the Republic of Korea, Westinghouse has been involved in the construction of new nuclear plants since the 1970s, and is now helping to bring a new plant on line at essentially the rate of one per year. In December, 2006, China’s State Nuclear Power Technology Company selected Westinghouse to provide four new AP1000 nuclear power plants, with the first to come on line in 2013.
Westinghouse is one of the two vendors in the final bidding process for new nuclear plants in South Africa.
Sale to Toshiba
In July 2005 BNFL confirmed it planned to sell Westinghouse, then estimated to be worth $1.8bn (£1bn). However the bid attracted interest from several companies, including Toshiba, General Electric and Mitsubishi Heavy Industries and when the Financial Times reported on January 23, 2006 that Toshiba had won the bid, it valued the company's offer at $5bn (£2.8bn). On February 6, 2006 Toshiba confirmed it was buying Westinghouse Electric Company for $5.4bn and announced it would sell a minority stake to investors.  The sale surprised many industry experts who questioned the wisdom of BNFL selling one of the world's largest producers of nuclear reactors shortly before the market for nuclear power was expected to grow substantially; China, the United States and the United Kingdom were all expected to invest heavily in nuclear power. However The Economist gave several reasons in favor of a sale. The commercial risk of the company's business in Asia may be too high for a company owned by taxpayers. Moreover, if Westinghouse won the bid for any new nuclear stations in a UK competition, questions may be raised of favoritism, but if it lost, it may be seen as a lack of faith in its own Westinghouse technology. Finally, the record of UK governments building nuclear plants had been a commercial disaster.
The acquisition of Westinghouse Electric Company for $5.4 billion was completed on October 16, 2006, with Toshiba obtaining a 77% share and partners The Shaw Group a 20% share and Ishikawajima-Harima Heavy Industries Co. Ltd. a 3% share. On 13 August 2007 Toshiba sold 10% to Kazatomprom, the national uranium company for the Republic of Kazakhstan, for US$540 million. Kazatomprom's ownership is entirely passive, with no voting or veto rights or even a presence on the board of directors.
In September, 2011, Toshiba was reported to be in talks to acquire the Shaw stake and both companies confirmed the story soon thereafter. Toshiba is paying US$1.6 Bn for the 20% stake under a Shaw-owned option, Shaw CEO James Bernhard said. Shaw said it was the 50% rise in the yen on its yen-denominated debt over five years which led it to exercise its sale option. The option was part of the 2006 purchase terms. Toshiba said it was open to, and considering, having other partners invest in the business. The purchase closed in January 2013, and brought Toshiba's share in the company to 87%.
In 2003 Westinghouse set out to create a company wide initiative called Customer 1st to change the way the company does business from the inside out. The program is designed around four basic pillars of performance.
- Lean Manufacturing - A Toyota based system that aims to reduce waste.
- Six Sigma - A Motorola based system that aims to reduce errors in production.
- Human Performance - A nuclear industry approach to reducing the frequency and severity of errors by removing error precursors and setting up barriers to error.
- Behavioral Differentiation - A method of changing behavior by changing the drives of those behaviors in order to differentiate ones self from a group.
This long-term program is designed to both improve the product the company creates and improve its relationship with those it serves.
Move to Cranberry Township
After a long period of waiting, Westinghouse finally decided to move its world headquarters from the Energy Center in Monroeville, Pennsylvania, to Cranberry Woods in Cranberry Township, Butler County, Pennsylvania. This action was reported in a memo that stated the main reason was due to rapid expansion in the global nuclear industry. The move began in June 2009 and was complete by December 2010; construction began in July 2007.
The Repair, Replacement and Automation Services (RRAS) business segment moved to Cranberry Township earlier than other business segments to help alleviate space issues at the headquarters in Monroeville. The RRAS move was completed in spring of 2008. As part of this early move, Westinghouse piloted the first Commuter Shuttle running on an all-day loop between Monroeville and Cranberry Township.
- Erich Schwartzel (27 September 2012). "Westinghouse selects GE exec as CEO". Pittsburgh Post-Gazette. Retrieved 11 December 2012.
- "Toshiba to buy Shaw's stake in Westinghouse". World Nuclear News. 10 October 2012. Retrieved 11 December 2012.
- "Westinghouse Company Profile" (PDF). Westinghouse Electric Company. 2008. Retrieved 2008-06-11.
- "Westinghouse Corporate History Timeline", 2009-2-05.
- Jasper Faber The Perils and Advantages of Licensing Technology in the Electrical Equipment Industry: Heemaf 1908-1970 http://www.gtg.tu-berlin.de/.../306-jasper-faber-the-perils-and-advantages... also http://nl.wikipedia.org/wiki/Heemaf (Dutch). George Westinghouse had befriended Heemaf's founder Rento Hofstede Crull during the time that he was in the United States working for Thomas Alva Edison and Elihu Thomson See: http://nl.wikipedia.org/wiki/Rento_Hofstede_Crull (Dutch)
- Peck, Merton J. & Scherer, Frederic M. The Weapons Acquisition Process: An Economic Analysis (1962) Harvard Business School p.619
- 2009 Westinghouse corporate profile
- "AP 1000 Public Safety and Licensing" (web). Westinghouse. September 13, 2004. Archived from the original on 2007-08-07. Retrieved 2008-01-21.
- "First Concrete Pour For Sanmen Unit 2 Complete", The Wall Street Journal, 2009-12-17.
- "Toshiba Acquires Westinghouse from BNFL, Toshiba Press Release, February 6, 2006, 2008-03-08.
- "BNFL to sell U.S. power plant arm". BBC News. January 23, 2006. Retrieved 2006-02-06.
- "Technology transfer" (January 28, 2006) The Economist pp. 30—31
- "Toshiba Completes Westinghouse Acquisition". Toshiba. October 17, 2006. Retrieved 2008-03-08.
- "Kazatomprom buys 10% stake in Westinghouse". World Nuclear News. 2007-10-22. Retrieved 2008-04-19.
- "Toshiba reportedly to buy 20% of Westinghouse", MarketWatch, Sept. 5, 2011, 6:53 pm EDT. Retrieved 2011-09-05.
- "Toshiba confirms it will buy Shaw stake in Westinghouse", Bloomberg via gulfnews.com, 00:00 September 8, 2011. The ownership shares over time as covered in the article don't fully add up. Some transactions probably not covered in the article. Retrieved 2011-09-08.
- "Toshiba buys Shaw Group's stake in Westinghouse". 7 January 2013. Retrieved 2 March 2013.
- "Customer 1st", Westinghouse LLC/westinghousenuclear.org webpage. Footnote updated 2011-09-05.
- "Westinghouse memo to employees". Pittsburgh Tribune-Review. March 20, 2007. Retrieved 2008-04-04.