The shutdown of these facilities, which provides 30% of the country’s power, will create a huge gap in the near-term as well as future power demand and supply. This tragedy perhaps could result in a significant impact on the entire nuclear power industry. As the events in Japan unfolded over the course of a single week, the driving force behind the growth of nuclear power in the country diminished.

The nuclear crisis was triggered after two of the damaged nuclear reactors caught fire, leaking radiation. As Japan battles to bring these reactors under control, other nuclear power producing countries are seriously considering increasing the safety measures of their nuclear facilities and some of them have already announced reviews of their nuclear programs. As a result of the damages, at least 2 gigawatts (GW) of Japan’s nuclear capacity have been permanently lost, and another 10 GW is likely to remain shut-down for several years. This capacity would need quick replacement to keep up with the high demand for power in the summer ahead. To fill the void Japan, already the world’s largest LNG (Liquefied Natural Gas) importer is looking to import additional LNG supplies, something that can be facilitated easily through global LNG markets with their flexibility of supply. However, even these additional LNG supplies are only expected to be able to replace about 50% of the lost nuclear capacity in the near-term. Therefore, Japan will have to explore other power generation options to meet the peak demand for power in the approaching summer.

GlobalData: Japan Power Crisis

GM has selected Knapheide Manufacturing Co. to install two different liquefied petroleum gas (LPG) systems into the 159 wheelbase cutaway van. CleanFUEL USA and Bi-phase Technologies serve as tier-two suppliers for the 49- and 75-gallon capacity LPG fuel system, respectively.

The vans come equipped with GM’s hardened Vortec 6.0L engine, and with this LPG offering, GM is the only automaker to offer four alternative fuel options for US fleet customers: LPG, CNG, E85 ethanol and B20 biodiesel.

The vans will be produced at GM’s Wentzville, Mo., plant and transported to Knapheide’s nearby facility for fuel storage/delivery system installation. Upon completion, the vehicle is then sent to the upfitter chosen by the customer for body installation. The cutaways can be converted to various commercial, school bus, shuttle bus and RV requirements.

Chevrolet Express and GMC Savana LPG cutaway vans will be covered by GM’s three-year, 36,000-mile new vehicle limited warranty and five-year, 100,000-mile limited powertrain warranty and vehicle emissions warranty, meeting all Environmental Protection Agency and California Air Resources Board emission certification requirements.

“LPG infrastructure has progressed rapidly, so it’s easier for our customers to refuel in convenient locations across the country,” said Brian Small, general manager, GM Fleet and Commercial Operations. “When our customers order the LPG option, they’re getting a sensible fuel alternative, with the convenience of a one-stop ordering process.”

Related Research:

Datamonitor – Automotive: United States Industry Guide

Datamonitor – New Cars in the United States

The vaccines sector has been shaped by numerous new approvals and consolidation, and is dominated by five large players: Sanofi Pasteur, GlaxoSmithKline, Merck & Co., Pfizer, and Novartis. Reported vaccine sales of these five companies account for an estimated 80% of the total market and grew from $7.1bn in 2004 to over $20bn in 2009, representing a compound annual growth rate (CAGR) of 21.6%.

The five major vaccines companies concentrate on different focus areas. GlaxoSmithKline, the market leader in 2009, reported sales of $5.8bn in that year. The company’s vaccine sales in the first three quarters of 2010 reached $5.1bn. Datamonitor believes that the company is an all-rounder in the vaccines market due to its broad portfolio of vaccines, which includes products for both traditional mass markets (pediatric combination vaccines, hepatitis, and influenza vaccines) as well as vaccines targeting novel indications such as Cervarix for human papillomavirus infection or Rotarix for rotavirus infection. The company’s most important products are: the Infanrix and Boostrix franchises (pediatric and adolescent DTP combinations); its hepatitis franchise, including the hepatitis B vaccine Engerix B and the hepatitis A/B combination vaccine Twinrix; Rotarix (rotavirus); Cervarix (human papillomavirus, or HPV); Fluarix (seasonal influenza); and Pandemrix (pandemic influenza).

Sanofi Pasteur was the second leading vaccines company in 2009 with sales of $5.7bn, and has registered vaccine sales in the first three quarters of 2010 amounting to $4.3bn. Datamonitor has nicknamed the company “the customizer”. This is because one of its key revenue sources is its pediatric vaccine franchise, and Sanofi Pasteur very efficiently maximizes revenues from this highly commoditized sector by providing tailored combination vaccines to the immunization schedules of individual countries. The company’s infant combinations, meningococcal vaccines, and influenza vaccines are its core franchises. On an individual product level, Menactra, Daptacel, Adacel, Pentacel, and Fluzone have been the strongest growth drivers.

Merck & Co. occupied third position in 2009 with sales in excess of $4.4bn. However, it must be noted that 2009 sales were under-reported due to M&A-associated changes in reporting structure. The company’s vaccine sales in the first three quarters of 2010 reached $3.0bn. Over the past five years, Merck & Co. has been the most innovative among the five players due to its successful portfolio of novel, high-price vaccines such as Gardasil, Zostavax, and RotaTeq. The company’s most important franchises are HPV, rotavirus and MMR-varicella vaccines.

Novartis was the fourth leading vaccines company in 2009. The company’s vaccines and diagnostics division reported 2009 sales of $2.4bn in 2009. Division sales in the first three quarters of 2010 grew to $2.6bn, driven by significant windfalls from H1N1 pandemic vaccine sales in the first half of the year. Prior to its acquisition of Chiron in 2006, Novartis was not active in vaccines, making the company a relative newcomer in the field. The company’s strength lies in its influenza and meningitis franchises. As a result, its key products are Fluvirin, Menveo, and its pandemic influenza vaccine franchise.

Pfizer, following its acquisition of Wyeth, became the fifth largest vaccines player in 2009 with sales in excess of $1.8bn. As with Merck, this figure is under-reported due to M&A-associated changes in the reporting structure. In the first three quarters of 2010, sales grew to $2.6bn. Wyeth’s success in vaccines has been built largely on the back of a single product: the pneumococcal conjugate vaccine Prevnar. For this reason, Datamonitor has termed the company “the one-hit wonder”. The Prevnar franchise, consisting of Prevnar 7 and the more recently launched Prevnar 13, is the strongest contributor to growth.

Highly commoditized and established sectors, such as influenza, hepatitis, and pediatric vaccines, still account for the vast proportion of global vaccine sales. The outbreak of the H1N1 pandemic in 2009 led to substantial windfalls for all major flu vaccine players, with GlaxoSmithKline, Sanofi Pasteur and Novartis reporting combined pandemic influenza sales of $6.4bn in 2009 and the first half of 2010. However, these high revenue gains will be short-lived, given that pandemic stockpiling has considerably subsided in 2010.

On a product level, novel, innovative vaccines stand out as being particularly successful. Pfizer’s Prevnar and Merck & Co.’s Gardasil have achieved blockbuster status, with 2009 global sales of over $1.5bn each, while the quadrivalent conjugate meningitis vaccine Menactra (Sanofi Pasteur), the infant combination vaccine Pentacel (Sanofi Pasteur) and the rotavirus vaccine RotaTeq (Merck & Co.) each achieved 2009 global sales in excess of $500m.

The commercial outlook for new entrants in the vaccine space varies significantly. Pfizer has built a vaccines franchise through the acquisitions of PowderMed (2006), Coley (2007) and, most importantly, Wyeth (2009). Through the latter, Pfizer gained access to the blockbuster Prevnar franchise, an attractive vaccine pipeline, and an experienced team, providing an excellent outlook for Pfizer’s future in vaccines.

In 2007, AstraZeneca entered the vaccine space through the acquisition of MedImmune, which markets the intranasal influenza vaccine FluMist. While the company gained some windfalls from the 2009/10 H1N1 pandemic, FluMist’s overall commercial performance has been disappointing, and Datamonitor expects AstraZeneca to remain a niche player in vaccines.

Similarly, Abbott obtained an influenza vaccine franchise through acquiring Solvay’s Pharma business in 2009. However, due to portfolio considerations as well as a lack of competitiveness in this sector, Abbott attempted to sell its vaccine business shortly after the acquisition. Failing to attract a buyer, the company announced in September 2010 that it would cease most vaccine R&D activities and mainly continue to produce and sell its seasonal influenza vaccine Influvac.

The latest new entrant is Johnson & Johnson, which made an offer to fully acquire Dutch vaccine maker Crucell for $2.3bn in September 2010. Datamonitor believes that Crucell’s attractive vaccine portfolio and pipeline would further reinforce Johnson & Johnson’s already strong position in the infectious diseases sector. These developments illustrate that, as the vaccines business differs significantly from other sectors of the pharmaceutical industry regarding clinical development, production, marketing and distribution, expertise, and know-how, as well as a well-planned strategy, are particularly vital for success in this challenging area.

Datamonitor: Infectious Diseases Vaccine Market Overview

For the year-to-date, the company’s sales increased 20.7% to 232,963 units, compared to 193,067 units in the same period of 2009.

“It’s no surprise the all-new Jetta and Touareg models did well for November but it’s also good to see increases from models such as the Routan, Tiguan and Golf,” said Mark Barnes, COO, Volkswagen of America, Inc. “Our TDI clean diesel products continue to gain popularity as customers realize the benefit of this product.”

Audi of America, Inc. has reported sales of 9,365 units in November 2010, an increase of 37.5%, compared to 6,810 units in November 2009.

For the year-to-date, the company’s sales increased 23.6% to 91,083 units, compared to 73,686 units in the same period of 2009.

The Audi A6 model line sales increased 54.1% to 812 units, compared to 527 units in November 2009, and sales of Audi A5 model line increased 10% to 1,181 units, compared to 1,074 units in November 2009.

“It is no surprise that Audi continues to remain in the coveted pole position within the luxury vehicle market with an exceptionally strong brand identity and superior vehicle offerings,” said Audi of America COO Mark Del Rosso.

Datamonitor: Automotive: North America Industry Guide

Datamonitor: New Cars – North America (NAFTA) Industry Guide

Datamonitor: New Cars in North America

BMI View: The signing of nuclear reactor construction agreements with Russia and Japan highlights Vietnam’s serious intentions to employ nuclear energy as a means to resolve its chronic electricity shortages. Despite a number of downside risks throughout the project phase, we believe that current electricity needs will outweigh these risks and the project will proceed.

During Russian President Dmitry Medvedev’s visit to Hanoi in October, Russian and Vietnamese authorities formally signed a deal -estimated to be worth US$10.6bn – to construct Vietnam’s first nuclear power plant. The nuclear plant, known as Ninh Thuan 1, will be located in the Ninh Thuan province and will involve the construction of two reactors with a capacity of about 1000 megawatts (MW) each. Atomstroyexport ,a subsidiary of Russian state nuclear holding company Rosatom will start construction of the plant in 2014 and begin operations in 2020. Russia will also guarantee the loan for the construction – though terms of the loan have not been agreed – and will supply nuclear fuel for the plant, while used fuel for reprocessing. Ninh Thuan 1 will be owned and operated by Vietnam’s state-owned electricity provider Electricity of Vietnam (EVN).

Similarly, in a state visit by Japanese Prime Minister Naoto Kan to Vietnam, Japanese and Vietnamese authorities signed an agreement – estimated to be worth US$14.4bn – to construct Vietnam’s second nuclear power plant. Known as Ninh Thuan 2, this will also be located in the Ninh Thuan province and will have two reactors of 1000MW each. Ninh Thuan 2 is expected to start operations in 2021. The signing of the agreement will please Japanese companies as they have shown keen interest in gaining nuclear power plant contracts in emerging markets (see ‘Nuclear Company Creation Positive For Overseas EPC Contracts’, October 18 2010).

Below, we assess the relative merits and drawbacks of Vietnam’s nuclear power plant ambitions.

The Pros:

• Nuclear power is more cost effective than renewable technology. Based on the latest data from the World Nuclear Association, nuclear power is estimated to cost roughly US$0.06 per kilowatt hour, while wind farms in Vietnam currently cost US$0.10 per kilowatt hour (KWh).
• Nuclear power is not affected by climatic factors, unlike hydropower, Vietnam’s main source of electricity. Severe droughts are hampering the amount of electricity generated from hydropower dams, and this is expected to get worse due to the expectation of declining rainfalls over the short to medium term.
• Nuclear power plants have sufficient size and scale to meet Vietnam’s growing demand for electricity over the long term. BMI is forecasting the country’s electricity consumption to average growth of 11.6% per annum between 2010 and 2019, significantly outpacing power plant construction in the country.

The Cons:

• Nuclear power plants require a significant initial investment and take a longer period of time to complete. A comparative example is the 200MW Ninh Thuan wind power project, which is slated to cost US$500mn and is estimated to take only 2 years to complete construction.
• The construction of a nuclear power plant requires the establishment and implementation of a professional regulatory regime and policies on nuclear-waste management and decommissioning – an area lacking in Vietnam’s business environment. The lack of such frameworks suggest that Vietnam may have a hard time meeting the high regulatory standards for nuclear power, increasing the level of uncertainty for the country’s power plant projects throughout their construction phase.
• Public support for nuclear power has tend to be lacklustre in South East Asia, which can lead to serious execution issues even after project completion – the Bataan Nuclear Power Plant in the Philippines that was built but was never used is a case in point (see ‘Napocor faces Nuclear Challenges’, July 27 2010).

Electricity Demands To Override Concerns

In conclusion, we believe that the current electricity shortages in Vietnam, which are severe with power outages occurring daily, will outweigh the downside risks in establishing a nuclear power plant and we expect the Vietnamese government to give their full support for the project. Going forward, we expect nuclear power to form a major portion of Vietnam’s electricity generation capacity. According local media reports, Vietnam plans to construct a further 12 power reactors by 2030. Therefore, these nuclear power projects represent a significant upside potential to BMI’s infrastructure forecast between 2014-2020. At present, we are currently forecasting Vietnam’s power plants and transmission grid infrastructure industry value to average growth of 4.4% year-on-year between 2014 and 2020. Once more procurement contracts are awarded we see strong upside to these growth forecasts.

BMI’s Infrastructure Reports feature market assessments and independent 5-year forecasts covering public procurement and spending on all major infrastructure and construction projects, including transportation and logistics by land, sea and air; power plants and utilities, and commercial construction and property development.

The impact of regulatory changes, GDP growth and the background macroeconomic outlook are examined, and competitive intelligence is provided comparing multinational and national contractors and suppliers by products, sales, market share, investments, projects, partners and expansion strategies.

To the BMI Vietnam Infrastructure Report Q4 2010

For the third quarter of 2010, net revenue from motorcycles and related products were $1.09 billion, compared to $1.11 billion for the third quarter of 2009.

Net income for the first nine months ended September 26, 2010 were $193.31 million, or $1.29 per diluted share, compared to $163.58 million, or $0.93 per diluted share, for the nine months ended September 27, 2009.

For the first nine-month period of 2010, net revenue from motorcycles and related products were $3.26 billion, compared to $3.52 billion for the same period of 2009.

Keith Wandell, president and CEO of Harley-Davidson, Inc., said: “Despite the continued challenges in the economy, we are making solid, steady progress at transforming our business. With our strategic focus on future growth initiatives and continuous improvement, we are positioning Harley-Davidson to succeed at today’s volumes, as well as to grow and restore greater profitability longer term.”

Datamonitor: Motorcycles: Global Industry Guide

Datamonitor: Motorcycles – North America (NAFTA) Industry Guide

A consortium led by South Korea’s Korea Electric Power Corp (KEPCO) and Japan’s Sumitomo has been awarded the contract for engineering, construction and procurement of the Shuwaihat 3 electric power plant in Abu Dhabi. The competition of five major global consortia and companies for this project in the light of current global economy supports BMI’s view that the independent power project (IPP) model remains highly attractive for foreign investors, in the United Arab Emirates but also in the Gulf region as a whole.

Shuweihat 3 will be the Abu Dhabi’s ninth power project developed and operated under the IPP model, which was originally launched in 1998. Whilst the previous eight projects are all independent water and power projects (IWPPs), water desalination is not included at Shuweihat 3 for financial and technical reasons. The gas-fired power plant has an estimated cost of US$1.5bn and will have a capacity of 1,600MW upon completion in 2013. Thereafter, KEPCO is to operate the plant and sell electricity from the facility for the following 25 years.

International interest for the project has been high. When Abu Dhabi Water and Electricity Authority (ADWEA) had announced the remaining two bidders – the KEPCO/Sumitomo team including Siemens and Daewoo, and the Marubeni consortium including Osaka Gas, Kansai Electric, Hyundai Heavy Industries and GE – at the beginning of October 2010, bids from International Power, Mitsui and GDF Suez had already been dropped. For KEPCO, Shuwaihat 3 is the second large power project in the United Arab Emirates it has been awarded in 2010. The company is also leading the consortium of South Korean companies, which was awarded the contract for the construction of the first nuclear power plant in the UAE earlier this year.

The UAE is a highly attractive location for investors in the power sector beyond the weakness of 2009-2010. BMI is forecasting real GDP growth averaging 3.7% per annum between 2010 and 2014, with the 2010 forecast being for economic growth of 4.8%. At the same time, population is expected to expand from 4.70mn to 5.10mn over the period to 2014, with GDP per capita and power consumption per capita forecast to increase by 22% and 8% respectively. UAE’s electricity sector will require at least $8bn in investment, the majority in Abu Dhabi, over the next six to eight years to meet the growing demand, and the government plans to expand the installed capacity by more than 50% during the next decade.

BMI’s Infrastructure Reports feature market assessment and independent 5-year forecasts covering public procurement and spending on all major infrastructure and construction projects, including transportation and logistics by land, sea and air; power plants and utilities, and commercial construction and property development.

The impact of regulatory changes, GDP growth and the background macroeconomic outlook are examined, and competitive intelligence is provided comparing multinational and national contractors and suppliers by products, sales, market share, investments, projects, partners and expansion strategies.

Business Monitor International: United Arab Emirates Infrastructure Report Q2 2010

Business Monitor International: Further Market Data and Reports

Toyota Motor and its subsidiaries, Daihatsu Motor and Hino Motors, have announced that their worldwide vehicle production in July 2010 increased 10.7% to 714,426 units, compared to July 2009.

The company’s total production in Japan increased 13.4% to 364,315 units and overseas production increased 8.1% to 350,111 units in July 2010, compared to the same period of 2009.

In July 2010, total sales of passenger cars, trucks and buses in Japan were 219,835 units, an increase of 16.1%, compared to the same period of 2009. Exports from Japan increased 13.1% to 165,546 units in July 2010, compared to the same period of 2009.

Datamonitor: New Cars: Global Industry Guide

Pharmaceutical and biopharmaceutical companies are under severe pressure to improve product pipelines, accelerate time to market, and improve margins on existing products, while maintaining strict adherence to quality principles and regulatory requirements. It is imperative that pharmaceutical and biotech companies address these business challenges to stay competitive, increase revenue, enhance profit, and reduce the risk of noncompliance.

Visiongain’s 4th Annual Pharmaceutical PLM Conference will feature keynote addresses, presentations, case studies and interactive discussions from development to commercialisation, quality control, supplier issues, regulation and inspection. Please be sure to register your participation amongst the industry’s elite for this intensive two-day of learning, networking and exploiting business opportunities.

Key Speakers

• Jonathan Deutsch, Director Pharma Development Safety, Licensing and Early Development, Hoffmann-La Roche
• Marc Sluijs, EMEA Business Development Director Life Sciences, Oracle
• Ralph C. Schimmer, Global Head Drug Safety Sciences – Metabolism and Cardiovascular, Hoffmann-La Roche
• Vishal K. Gupta, Director Pharmaceutical R&D, Covidien
• Alok Aggarwal, Co-Founder and Chairman, Evalueserve
• Alexandra C. Gruber, Director Business Development & Marketing, BIOCRATES Life Sciences
• Mike Rea, Chief Executive Officer, IdeaPharma
• Peter G Nielsen, Executive Vice President of Pharmaceutical Development and Chemistry Manufacturing & Control, Lifecycle Pharma
• Nigel Stoate, Partner, Taylor Wessing
• Paul FitzGerald, Owner, Syntropy Medica
• Martin Hawkins, Executive Director, SBT
• Matej Janovjak, CEO, InSysteA
• Jason Berning, Professional Services Consultant, Lorenz Life Sciences Group
• Dr. Barbara Domayne-Hayman, Chief Executive Officer, Stabilitech

By attending this conference, you will:

• Hear from R&D, design, engineering and technical professionals and executives
• Recognise the potential benefit of PLM in drug development process
• Learn how to achieve target quality profiles and comply with regulatory requirements
• Find out how partnerships with technology vendors can maximise value through an efficient PLM implementation
• Eliminate inconsistent branding, improve brand communication and enable brand growth
• Gain knowledge of how to manage PLM in a patent environment

 
Who should attend:

• Vice/Presidents, Directors, Heads of:-
• Lifecycle Management
• Portfolio Management Research & Development
• Strategic Planning Partnering
• Licensing & Alliance
• Process Chemists, Pre-Formulation
• Formulation Clinical Scientists
• Clinical Investigators
• Brand Management
• Patent
• Regulatory Affairs

Target audience – industry

• Pharmaceutical companies, biopharmaceutical companies, software vendors, PLM vendors, Analysts, Consultants

The visiongain event is to be held at BSG House, London. The address of the venue is:
BSG House, 226-236 City Road, London EC1V 2QY

For market data and market reports from Visiongain click here

BMW is to use carbon-fiber-reinforced plastic to manufacture the body of its forthcoming Megacity electric car. The material is expected to reduce the car’s weight by 250-350kg, thereby significantly increasing its driving range, which was previously a major resistor to the uptake of electric/hybrid cars. This should lead to a rise in adoption rates, especially in the luxury segment.

Scheduled for release in 2013, Megacity will be the first electric car to be mass-produced using carbon-fiber-reinforced plastic (CFRP), which is 50% lighter and significantly stronger than steel. The technology is not new, and has been used in the past to make the bodies of high performance Formula One cars and airplane wings; however, this is the first time that CFRP will be used commercially in the auto industry.

CFRP relies on a complex production process, which will significantly increase the cost of manufacture and hence the overall cost of the vehicle. As a result, Datamonitor expects that, in the short term, this technology will largely be used in the production of electric and hybrid cars in the luxury segment, an area where makers can more easily pass the cost of production on to the consumer. This segment caters for consumers who are looking for sustainable car alternatives but are not willing to compromise on vehicle power, driving range, safety standards and the luxury offered by these makes.

Demand, awareness and willingness to pay for these cars among consumers have always been strong, but the segment has not really progressed due to the lack of sustainable technology. However, with the driving range of electric and hybrid cars in the luxury segment improving, Datamonitor expects to see a rise in their adoption rate.

Luxury electric and hybrid cars’ share of the European market in terms of total sales is currently around 4%. With the launch of the Megacity and other new models (for example, Daimler has already announced plans to use CFRP in its passenger cars by 2013), Datamonitor expects this segment to grow from its current rate of between 4-7% to around 10-15% by 2014. In future, this technology will also be easily replicated in the commercial electric vehicles segment (such as buses, ambulances and fleet vehicles), thereby creating a significant business opportunity for electric vehicle manufacturers.

Datamonitor: Automotive – Global Industry Overview