Nuclear giant Areva to post 'significant' loss'

December 11, 2011
French state-owned nuclear giant Areva is to announce significant losses when it unveils its new corporate strategy this week, Industry Minister Eric Besson said on Sunday.

French state-owned nuclear giant Areva is to announce significant losses when it unveils its new corporate strategy this week, Industry Minister Eric Besson said on Sunday.

"I can confirm that Areva will announce losses, in all likelihood they will be significant," Besson told France's Radio J.

Areva CEO Luc Oursel is to meet with investors on Monday to present the new strategy, which follows decisions by some governments to drop after Japan's disaster and which is expected to involve major .

The strategy will be released publicly on Tuesday.

"The exact figures are for Areva President Luc Oursel to announce and explain," Besson said.

Sources told AFP last month that Areva was planning to cut at least 2,700 jobs and slash investments by 40 percent to generate at least 750 million euros ($1 billion) in annual savings by 2015.

Areva and the government have denied French jobs will be lost and the job cuts are most likely to affect the company's operations in Germany, which has announced plans to shut all of its reactors by the end of 2022.

Besson said the losses could be pegged in particular to depreciation of assets, including the UraMin uranium mines in Namibia that Areva purchased in 2007.

He said he expected Areva to set up a "special committee" to investigate the deal that saw UraMin "bought at a very high (cost) level".

He also confirmed that Areva's third generation EPR nuclear reactors being built in Finland and in Flamanville in northern France would "cost much more to build than was expected".

He added however that Areva was in talks on selling EPR reactors with "many countries who continue to invest in nuclear," including China, India, South Africa and Britain.

Explore further: Areva to begin US trial of cancer-fighting isotope

Related Stories

Oil giant Saudi Arabia looks to alternative energy

January 25, 2011

With vast oil reserves that are far from exhausted, Saudi Arabia, facing rising domestic energy demand that could cut into its oil exports, has decided to explore nuclear and renewable energy, Oil Minister Ali al-Naimi has ...

Areva to set up treatment system at Japan plant

April 19, 2011

French nuclear group Areva said Tuesday it will set up a system to treat radioactive water from a quake-hit Japanese power plant to allow power supplies and cooling systems to be repaired.

Recommended for you

Inferring urban travel patterns from cellphone data

August 29, 2016

In making decisions about infrastructure development and resource allocation, city planners rely on models of how people move through their cities, on foot, in cars, and on public transportation. Those models are largely ...

How machine learning can help with voice disorders

August 29, 2016

There's no human instinct more basic than speech, and yet, for many people, talking can be taxing. 1 in 14 working-age Americans suffer from voice disorders that are often associated with abnormal vocal behaviors - some of ...

Apple issues update after cyber weapon captured

August 26, 2016

Apple iPhone owners on Friday were urged to install a quickly released security update after a sophisticated attack on an Emirati dissident exposed vulnerabilities targeted by cyber arms dealers.

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.