Areva

Areva is an industry group French specialized in the trades of the energy:

  • It is a group present in the whole of the industrial activities related to the nuclear energy: mine S, Chemistry, enrichment, combustible, services, Engineering, nuclear Propulsion and engines, treatment, reprocessing, cleansing-dismantling.
  • It affirms to propose technological solutions to produce energy without carbon dioxide (CO {{ind|2}}).
  • It is also specialized in the routing of the electricity.

Areva is present industrially in 40 countries and its sales network works in more than 100 countries.

The group is mainly made up of 3 subsidiary companies:

  • Areva NC : “Nuclear Cycles” specialized in the cycle of nuclear fuel, in the past Cogema
  • Areva NP (whose Siemens is also the shareholder with 34%): “Nuclear Power”, construction of nuclear plants, in the past Framatome ANP
  • Areva T&D: transmission and distribution of electricity

Its president is Anne Lauvergeon since 1999.

Trades

In 2006, Areva counts approximately 61  000 employees (after transfer of FCI, 70  000 before this transfer) and controls a great number of subsidiary companies whose principal ones are listed below.

Energy

The principal subsidiary companies controlled by Areva are (at the March 2006):

On the operational level, Areva divides its activity into four poles, whose limits generally do not recut those of the subsidiary companies:

  • the pole upstream (mines, etc), whose trade is the manufacture of Fuel nuclear starting from the ore of Uranium.
  • the pole engines and services, whose trade is the construction and maintenance of nuclear reactors (such as the EPR or ATMEA 1).
  • the pole downstream, whose trade is the recycling of worn fuels, as well as the dismantling of the installations shut down.
  • the pole T&D (transmission and distribution of electricity), whose trade is the implementation of solutions of routing of electricity.

Other activities and participations

In May 2005, Areva yielded the totality of the 28.4% which it held in Assystem Brime.

In October 2005, FCI, the specialized subsidiary in the connector industry, was yielded to the funds of investment Capital Bain.

History

Evolution of the perimeter of Areva

Areva was created the September 3rd 2001, by the fusion of ECA Industry, Framatome and Cogema.

Its Company name is S.A. Company of the Participations of the Commissariat à l'Energie Atomique . This name is in fact the name of origin of ECA Industry. The name Areva is not initials, it was inspired by the abbey of Arevalo, in Spain.

The branch transmission and distribution (Areva T&D) were bought with Alstom the January 9th 2004.

The Privatization of Areva was announced by the French government since 2003, but was deferred several times, in particular with the profit of privatizations of GDF and EDF. At the end of October 2005, the Prime Minister Dominique de Villepin announced that it suspended the process.

Development of the EPR

See also: European pressurized Engine

During years 1990, Areva developed a new nuclear reactor: EPR. Marketing began during the years 2000.

Areva in Niger

Areva has exploited the uranium of the Niger, 5th world producer, for forty years, playing the part of second employer in Niger, after the State. Areva is given an advantageous tariff of 27.300 frank CFA (41 €) the kilogram of uranium, whereas the market price, is at 122.000 francs CFA the kilo (186 €). These privileged tariffs were obtained thanks to the context of the decolonization; in 1961, France and certain countries of West Africa, made from the agreements according to which the old colonial power guaranteed safety and stability, in exchange of the primacy on their mining resources. Areva is suspected of complicity with the new Touareg rebellion of the MNJ (Mouvement of the Natives of Niger for justice) which operates in the septentrional areas of Niger. Thus, the adviser with safety Gilles DENAMUR and the managing director of Areva in Niger Dominique Pin were expelled in June and August 2007 after the attacks of Tezerzet, of Imouraren, during which, of the vehicles were carried and a advanced station of the army native of Niger put out of state to harm. According to the president of Niger Mamadou Tandja, this supposed support of the French nuclear group for the MNJ aims at preventing concurrent alien companies from settling in the area. Niger and Areva however had renewed until the end of the 2007 agreements which bind them. The price of uranium will increase and Niger will be able to sell directly for its own account 300 tons on the market. Concerning the prospection of uranium, Areva from now on will be treated as well as the new partners of Niger, indicated Mrs. Mindaoudou without specifying which it acted. On Saturday, September 8, 2007, of big demonstrations took place in Niger to claim " the departure of Areva" country.

Marketing

In 2006, a campaign on a worldwide scale, “Experts in energy”, managed by Euro RSCG C&O, and carried out by the French collective H5, was given like drank “to reinforce the visibility of the mark, to develop its competences and to show the coherence of its activities in the field of energy. ” This countryside, illustrated by the famous song " Funky town" , was criticized by the antinuclear ones which denounced " the contamination funky".

Sponsored Areva also of the French boats to the Cut of America: Challenge Areva in 2003, Areva Challenge in 2007. This sponsorship caused sharp protests in Australia and New Zealand, country whose public opinions are opposed to the nuclear power, but also in France where the antinuclear ones denounced a provocation, estimating that the wind was related on renewable energies and not to the nuclear power.

Management of the firm

Areva is a Public limit company of French right to directory and Board of trustees.

Board of trustees

Members named by the shareholders:

  • Frederic Lemoine - president
  • Alain Bugat - vice-president
  • ECA - Represented by Jacques Bouchard
  • Euan Baird
  • Patrick Dresser
  • Thierry Desmarest
  • Gaishi Hiraiwa
  • Daniel Lebègue
  • Olivier Pagezy

Members representing the State, named by the government:

  • Dominique Maillard
  • Jean-Pierre Lafon
  • Bruno Bézard
  • Luc Rousseau

Members representing the employees:

  • Jean-Claude Bertrand - Areva NC - Pierrelatte
  • Gerard Melet - Areva NC - La Hague
  • Alain Fish pond-Blackbird - Areva NP - Lyon

Directory

Strategic analysis

The president Anne Lauvergeon estimates that in a world of energy in full recombining, its group has many assets (summarized its remarks):

  • the Europe is redécouvrir the strategic dimension of energy after one period of relative disinterest and the interest of a European vision of the energy which will pass by regroupings. Starting from 2012, Europe will have to face the replacement of the old power stations and will moreover have, to implement 1.000 new capacity megawatts each month.
  • the large companies of the energy sector saw these last years their margins being very strongly appreciated and much of them have considerable financial capacities. The regroupings will make it possible to create new actors able to have reserves financial even more important, which will enable them to invest massively in the production and the networks of transmission and distribution.
  • Areva has an ambitious development plan in uranium, because in the thirty next years, the companies of energy will have to double production capacities and to very clearly improve the networks and the interconnections. The needs for Areva from of needs for investments will become considerable while at the same time the company is limited in its credit-worthinesses and than the large investments must be taken in guarantee (quasi-debt) on the assessment. The backing with another group or a new regrouping must thus be considered.
  • Apart from the Europe, three other countries are particularly aimed by Areva, the China, the the United States and the India.

The ambitions of Anne Lauvergeon however are thwarted by the not-privatization of the group decided by the government. In addition, the way in which it led its re-election to the head of Areva annoyed Thierry Breton, the Minister of Industry of the time.

Very young person, the public group either did not show a serene face, nor stabilized. The marriage with Alstom is regularly considered, just as a bringing together with Bouygues. Moreover, Areva does not have sufficient treasury to operate massive repurchases whereas it must face large building sites: the construction of a nuclear reactor in Finland, of a factory of enrichment in France and the future EPR of Flamanville.

Financial data

(1) without FCI, the pole connector industry sold, is +3,7% in comparable data

(2) 558 M€ except FCI (pole connector industry)
(3): including 528 M€ of the transfer of FCI (pole connector industry)

Financial impact of the building site Olkiluoto 3

Following the delay of the building site of Finnish EPR, Areva must fund to pour penalties with TVO. A provision of 60 million euros was passed in 2005, then a provision evaluated to 200 million euros in the first half of 2006. At the end of 2006, the amount of these provisions is estimated at 700 million euros. In 2007, new provisions should be last for an amount evaluated between 500 and 700 million euros, which would carry the overcost with 1.5 billion euros.

Stock exchange data

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