'Areva' () is a
French public multinational industrial
conglomerate that deals in
energy, especially in
nuclear power. It was created on 3 September, 2001, by the
merger of
CEA Industrie,
Framatome and
Cogema (now
Areva NC). Its main
shareholder is the French owned company CEA, but the
German government also retain, through
Siemens, 34% of the shares of Areva's subsidiary,
Areva NP, in charge of building the
EPR (third-generation nuclear reactor) [ Marc Lomazzi, "Nucléaire: les dessous de l'accord entre la France et la Libye", ''Le Parisien'', 13 August 2007 [1]].
The parent company is incorporated under French law as a ''
société anonyme'' (SA - public corporation). The French State owns more than 90%. The corporate name Areva is inspired by
Arevalo Abbey in Spain.
Anne Lauvergeon is the Chairman of the Executive Board (equivalent to President and CEO). Areva official Ralf Güldner is the vice-chairman of the
World Nuclear Association.
Nuclear energy company
Areva is the world leading company in nuclear energy. It is the only company with a
presence in each industrial activity linked to nuclear energy:
mining, chemistry, enrichment, combustibles, services, engineering, nuclear propulsion and reactors, treatment, recycling, stabilization, and dismantling. Areva claims to offers technological solutions for CO
2 free energy. It also produces
earth leakage circuit breaker technologies.
Three main companies form the core of Areva:
★
Areva NP (formerly Framatome ANP) - Nuclear Power: develops and builds nuclear reactors;
Siemens has a 34% stake in
Areva NP
★
Areva NC (formerly Cogema) - Nuclear Cycle: covers the whole nuclear fuel cycle, from mining to waste disposal. Owns
Eurodif.
★
Areva T&D: Transmission and Distribution: power transmission and distribution. It was bought to
Alstom on 9 January, 2004.
The major partners of Areva include:
Technicatome,
Euriware,
STMicroelectronics,
Eramet, and
SAFRAN.
Areva is part of the
Global Nuclear Energy Partnership (GNEP) alliance, along with the
Japan Atomic Energy Agency (JAEA),
Washington Group International, and
BWX. GNEP is a plan initiated in 2006 to form an international partnership to
reprocess spent nuclear fuel in a way that renders the
plutonium in it usable for
nuclear fuel but not for
nuclear weapons.
Administration
The actions of the Chairman of the Executive Board,
Anne Lauvergeon, are subject to considerable oversight by both the board of directors and the supervisory board. In 2006,
Spencer Abraham, former secretary of Energy, was named director of Areva Inc., the US subsidiary of Areva
[ L’ancien secrétaire à l’Énergie de l’administration Bush, Spencer Abraham, est nommé directeur de la filiale états-unienne d’Areva Spanish translation) ].
Jean-Pierre Raffarin's government announced the
privatization of Areva in 2003, but it was postponed several times, the French government opting finally for the privatization of
GDF and
EDF. At the end of October 2005, Prime minister
Dominique de Villepin announced that he suspended the processus.
Nuclear Reactor Designs
EPR
Areva has been constructing
Finland's fifth
reactor in Olkiluoto since 2005. The reactor, which is one of the first of the new, third generation reactor (EPR -
European Pressurized Reactor), was supposed to first produce electricity in 2009, but the project has been delayed because of technical difficulties and quality problems. The production start was postponed in August 2007 to 2010-2011
[. The new plant is expected to cost 3 billion euros.]
Beginning of 2007, Anne Lauvergeon entered negotiations with China to sell it two EPR [1]. However, according to the environmentalist network ''Sortir du nucléaire'', China would have cancelled this project in the summer of 2007, an information which Areva refused to confirm [ La Chine aurait annulée sa commande d'EPR, ''Le Nouvel Observateur'', 22 August 2007 ]. ''Sortir du nucléaire'' had revealed on 30 July 2007 that the two EPR reactors were to be sold to China for $ 5 billion, approximatively half the market price — but China still would have rejected the offer [.]
The second EPR in France was to be built at the Flamanville Nuclear Power Plant at the beginning of 2008. Other EPRs were to be sold to the United Kingdom and to the United States (''See below'').
Furthermore, ''Le Parisien'' alleged on 13 August 2007 that the Franco-Libyan civil nuclear power agreement signed by President Nicolas Sarkozy did not concern desalinization of sea water, as alleged by Paris, but focused on particular on the EPR, of a worth of $3 billion [ Marc Lomazzi, "Nucléaire: les dessous de l'accord entre la France et la Libye", ''Le Parisien'', 13 August 2007 [2]]. The Parisian newspaper cited Philippe Delaune, the deputy of the deputy director of international affairs of the CEA atomic agency, which is the main share-holder of Areva [. Following allegations that the deal had been related to the release of the Bulgarian nurses, the French Socialist Party, through the voice of Jean-Louis Bianco, declared that this deal was "geopolitically irresponsible. ][" The German government also denounced the agreement ][.]
Atmea I
The Atmea I is planned to be a new evolutionary reactor design targeted towards both developed and developing economies. It will be developed through a joint venture with Mitsubishi called Atmea. Current plans target the power to about 1100 MWe, but the design could be scalable in power to fit different size grids. Current plans call for design certification in around 3 years.
Worldwide presence
Worldwide, the Areva group has an industrial presence in 40 countries and its commercial network reaches more than 100 countries. It employs 58,000 people for a consolidated sales revenue of €10.863 billion. [2] In 2006, ''Fortune Magazine'' reported that Areva was the "Most Admired Global Energy Company."[3]
Areva has partnered with engineering contractors to aid in the reconstruction of Iraq by manufacturing equipment to construct electrical substations.[4]
In June 2007, Areva announced plans to acquire the African Uranium mining company UraMin for a final price of about 2.5 billion USD. This move further beefs up Areva's nuclear business, and Areva plans to increase production to 9 million kilograms of Yellowcake by 2012. [5]
Areva has also signed a memorandum of understanding with Mitsubishi Heavy Industries for the establishment of a joint venture for their next reactor design.[6]
Niger (mines)
Areva owns two mines in Arlit, Niger, where it employs 1,600 persons; Niger is one of the world's three largest uranium exporters. Nigerian uranium account for 30% of the French consumption and 32% of Niger's exports, but less than 5% of Niger's GDP [ "Atomes pas très crochus au Niger" in ''Le Canard enchaîné'', 22 August 2007, p.4 ]. The increase of the cost of uranium on world markets in 2006 (more than 46% [) will enable Niger to triple its revenues acquired from Areva ][. On 25 July 2007, the CEO of Areva-Niger, Dominique Pin, was expelled from Niger (although he was then in Paris) on charges of supporting the Tuareg Rebellion ][. According to ''Le Canard enchaîné'', this move from Seyni Oumarou's government was motivated by negotiations concerning the uranium trade agreement, which was finally renewed on 1st of August, 2007 ][. Furthermore, Laouel Kader Mahamadou, who had resigned from his functions of secretary general of the Nigerian government to assume the function of counsellor of Areva-Niger, was asked by the French DGSE to remain in Niger instead of taking the plane to France for an integration workshop — this until a "clarification of the situation" [7].]
The population of Niger was exposed to serious famine in 2005. Areva therefore gave 130,000 euros in June 2005 to the alimentary crisis coordination group of Niger, and 120,000 euros in July in the form of two planes loaded with food and set up by Bernard Kouchner's ''Réussir'' NGO. According to ''Le Canard Enchaîné'', this aid amounted to 0.05% of Areva's annual profits of 428 million euros. [8].
McArthur River mine
Areva Resources Canada Inc. also has a 30% share in the McArthur River mine in Canada, which contributes about 20% of total global uranium mining production. The rest is owned by Cameco Corporation.
South Korea
In 2007, Areva signed a ten years deal to enrich uranium in its forthcoming Georges Besse II enrichment plant 2007 with South Korean public company KHNP. The deal is worth over a billion euros [9].
United States
In the USA, Areva is present in 40 locations across 20 states and employs 5,000 people. Areva supplies network products to two-thirds of all US utilities. Moreover, Areva was ranked N° 1 US supplier in nuclear energy products and services, in Energy Management Systems and in Energy Market Systems. Its US headquarters are in Bethesda, MD.
In February 2002, the U.S. Secretary of Energy Spencer Abraham announced the Nuclear Power 2010 Program, which included two EPRs. On September 15, 2005 Areva and Constellation Energy of Baltimore announced a new joint venture, called UniStar Nuclear, that will market the commercial EPR in the US. Spencer Abraham was named director of Areva's subsidiary in the United States in 2006 [.]
Other activities
Areva is also involved in military technology, designing for example the nuclear reactor for the French Barracuda class submarine.
One of Areva's subsidiary, Euriware (founded in 1991) is specialized in computer engineering, and employs 2,100 persons on 14 different sites. Areva also owns 11% of STMicroelectronics, 26,25% of Eramet, and 8,45% of Safran. It solded in May 2005 the totality of its stakes in Assystem, as well as FCI in October 2005 (sold to the hedge fund Bain Capital).
CERCA, a subsidiary of Areva, is also involved in TRIGA International, established in 1996, with the US firm General Atomics.
Areva is also a corporate member of the Bruegel think tank.
2007 fine
Areva was given in January 2007 a € 53 million fine by the European Commission for rigging EU electricity markets in a cartel involving 11 companies, among whom ABB, Alstom, Fuji, Hitachi Japan, AE Power Systems, Mitsubishi Electric Corp, Schneider, Siemens, Toshiba and VA Tech [ EU cracks down on electricity-gear cartel, ''EurActiv'', 25 January 2007 ]. According to the Commission, "between 1988 and 2004, the companies rigged bids for procurement contracts, fixed prices, allocated projects to each other, shared markets and exchanged commercially important and confidential information."[ Siemens was given a fine of € 396 million, more than half of the total, for its alleged leadership role in the cartel.]
EU Competition Commissioner Neelie Kroes declared that "The commission has put an end to a cartel which has cheated public utility companies and consumers for more than 16 years" [10].
Advertisements
Areva has gained some fame after airing 3,000 cel-shaded animation television ad spots created by French design group H5, who also created the similar music video for Röyksopp's "Remind Me". The ads explained how the generation and distribution of nuclear power works. The ads featured the song "Funkytown" by Lipps Inc..
References
1. Areva vend deux réacteurs nucléaires à la Chine, ''Le Monde'', 2 February 2007
2. Areva's press release
3. CNNMoney
4. Farabi and Jamila, Iraq Substations
5. http://www.neimagazine.com/story.asp?sectionCode=132&storyCode=2045247
6. http://www.japancorp.net/Article.Asp?Art_ID=14804
7. CONFLIT ARMÉ DANS LE NORD. Des morts et des réfugiés, ''Le Républicain-Niger'', 23 August 2007
8. Peu enrichi à l'uranium ("Not much enriched by uranium")
9. "S.Korea signs uranium enrichment deal with France", ''Reuters'', 19 June 2007 on-line
10. Vote call by Siemens shareholders, ''BBC'', 25 January 2007
See also
★ European Atomic Energy Community
★ Nuclear Power 2010 Program
★ Calvert Cliffs Nuclear Power Plant
★ Kazatomprom
★ Nine Mile Point Nuclear Generating Station
Sites
★ Tri-Cities, Washington
External links
★ Areva Website
★ Areva Energy Experts (The Areva TV Animation)
★ Report on Areva dropping their bid for Westinghouse in August, 2005
★ Official site of the Olkiluoto reactor project in Finland
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