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The company building a new facility in Newport News to build components for nuclear reactors has decided to end its fuel-assembly production in Lynchburg and expand its operations in Richland, Wash. Areva said this week it will consolidate the two operations, resulting in a job loss of about 150 in Lynchburg. Areva has operated the Washington facility for 40 years. Areva spokeswoman Judy Thomas told the Tri-City Herald, a newspaper based in Kennewick, Wash., that the 150 employees in Lynchburg will be given first choice for 50 new jobs in Richland, where Areva has 700 employees. The French-owned energy service company announced last year it will build a $2 billion uranium enrichment plant at Idaho Falls, Idaho. It will produce a raw material for the Richland plant to turn into fuel assemblies for nuclear reactors. Areva plans to open its Newport News manufacturing plant, a joint venture with Northrop Grumman, by 2011 on the James River waterfront near the shipyard.

The company building a new facility in Newport News to build components for nuclear reactors has decided to end its fuel-assembly production in Lynchburg and expand its operations in Richland, Wash. Areva said this week it will consolidate the two operations, resulting in a job loss of about 150 in Lynchburg. Areva has operated the Washington facility for 40 years. Areva spokeswoman Judy Thomas told the Tri-City Herald, a newspaper based in Kennewick, Wash., that the 150 employees in Lynchburg will be given first choice for 50 new jobs in Richland, where Areva has 700 employees. The French-owned energy service company announced last year it will build a $2 billion uranium enrichment plant at Idaho Falls, Idaho. It will produce a raw material for the Richland plant to turn into fuel assemblies for nuclear reactors. Areva plans to open its Newport News manufacturing plant, a joint venture with Northrop Grumman, by 2011 on the James River waterfront near the shipyard.

French nuclear energy giant Areva said Monday it would supply Dubai with 11 electricity substations for 200 million euros (286 million dollars), as the emirate grapples with a serious debt crisis. "The order is the largest ever for Areva T&D (Transmission and Distribution) in the United Arab Emirates," Areva said in a statement. Philippe Guillemot, chief executive of Areva T&D, called it a "prestigious contract" that would strengthen his company's presence in the region.

French nuclear energy giant Areva said Monday it would supply Dubai with 11 electricity substations for 200 million euros (286 million dollars), as the emirate grapples with a serious debt crisis. "The order is the largest ever for Areva T&D (Transmission and Distribution) in the United Arab Emirates," Areva said in a statement. Philippe Guillemot, chief executive of Areva T&D, called it a "prestigious contract" that would strengthen his company's presence in the region.

Areva, a French nuclear construction company, said this week that its project to build the world's most powerful reactor remained mired in delays and was over-budget by 2.3 billion euros, or about $3.3 billion. The price tag of the plant in Olkiluoto, Finland - the first of a fleet of so-called evolutionary power reactors that Areva foresees building in coming years - was about $4.3 billion in 2003 and costs have steadily increased. The reactor was meant to have gone online early this summer but Areva no longer is committing to any dates for its completion. Patrice Lambert de Diesbach, an energy analyst with CM-CIC Securities in Paris, said the latest developments were "bad news" for Areva and "should be sanctioned by the market."

Areva, a French nuclear construction company, said this week that its project to build the world's most powerful reactor remained mired in delays and was over-budget by 2.3 billion euros, or about $3.3 billion. The price tag of the plant in Olkiluoto, Finland - the first of a fleet of so-called evolutionary power reactors that Areva foresees building in coming years - was about $4.3 billion in 2003 and costs have steadily increased. The reactor was meant to have gone online early this summer but Areva no longer is committing to any dates for its completion. Patrice Lambert de Diesbach, an energy analyst with CM-CIC Securities in Paris, said the latest developments were "bad news" for Areva and "should be sanctioned by the market."

Areva and Electricité de France (EDF) are French-based companies at the heart of worldwide attempts to re-launch nuclear ordering - the so-called Nuclear Renaissance. Areva is an electricity industry equipment supplier offering transmission and distribution equipment as well as the full range of civil nuclear technologies. For its nuclear business, it operates as Areva NP, a joint venture with the German company Siemens in which Areva holds 66% and Siemens the balance, although in January 2009, Siemens announced it would be withdrawing from the joint venture (see below). EDF is an electric utility operating all the main generating technologies. The French state retains a majority holding in both companies although the priorities of their private shareholders, for EDF small shareholders and for Areva NP, Siemens, can no longer be ignored. In addition, the European Union law on unfair State Aids only allows governments to meet company losses or provide other assistance if such measures do not distort competition. For the markets Areva and EDF operate in, it would be hard to argue that any state aids did not distort competition.

"Areva SA, the French nuclear-reactor builder, took a new provision for cost overruns at a plant it's building in Finland, leaving the door open for more charges as the project is still 2 1/2 years away from completion. The company said yesterday it will book a charge of about 400 million euros ($491 million) in the first half as Finnish customer Teollisuuden Voima Oyj said this month the OL3 plant will start nuclear operations at the end of 2012 rather than by a previous June 2012 deadline. Areva "has now installed the reactor pressure vessel and continues work on piping, but history suggests further delays are very likely," Alex Barnett, an analyst at Jefferies International Ltd., who recommends buying Areva investment certificates, said in a research note today. The new charge takes total provisions for cost overruns to about 2.7 billion euros for the first-of-its-kind project, which Areva pledged in 2005 to build for 3 billion euros and complete in 2009."

Outreach effort ramping up from impulse power to warp drive Areva logoNote to public relations consultants to major nuclear reactor vendors, Areva, the world's largest integrated firm across the entire nuclear fuel cycle, thinks the blogsphere is worth its time in terms of dialog. The French nuclear giant has an initiative underway in which company officials hold monthly conference calls with nuclear energy bloggers. During the hour-long call, bloggers get to ask some tough questions. For their part, Areva is working to emerge from a traditional corporate communications strategy of walking softly and not saying very much to the press, much less to bloggers. Wide ranging topics for discussion In the conference call held this past Friday, May 8, the fifth in the series, the firm fielded questions about the facts behind a hostile article published in the Economist May 7, the status of the MOX fuel plant under construction in South Carolina, and next steps at Calvert Cliffs III which was short-listed for federal loan guarantees and got a green light this week from the Maryland PUC. The project to build the first 1,600 MW EPR reactor in the US is scheduled to break ground in 2011 and enter revenue service in 2015.

"AREVA and Fresno Nuclear Energy Group (FNEG) today announced that they have signed a memorandum of understanding (MOU) to develop a Clean Energy Park near Fresno, California, including nuclear and renewable generation. According to the MOU, AREVA and FNEG will work together on the site selection and initial development of a nominal 1,600 Megawatt U.S. EPR™ reactor. The agreement also includes potential development of other AREVA energy technologies such as concentrated solar power. "Our goal is to create a power-producing infrastructure that combines clean electric energy sources, including nuclear, solar, and future technologies," said John Hutson, president of FNEG."

"The French nuclear group Areva said Friday it would halt shipments of depleted uranium to Russia in July in response to a commercial dispute. Areva each year sends several tonnes of depleted uranium to Russia to be re-enriched in facilities operated by the Russian nuclear agency Rosatom. A contract between Areva and its Russian partner Tenex, a Rosatom subsidiary, was to run until 2014, with a possibility that conditions could be re-negotiated for the period 2011-2014. "We have agreed on ending the contract in 2010 because of a disagreement over commercial conditions," an Areva spokeswoman told AFP, adding that shipments would stop in July."

Private equity fund CVC has pulled out of talks with General Electric (GE.N) about a possible joint bid for the power and transmission unit of France's Areva (CEPFi.PA), a French financial news service reported on Sunday. Spokesmen for the firms involved could not immediately be reached for comment. State-owned nuclear reactor group Areva is selling its T&D unit and has selected Japan's Toshiba (6502.T), a consortium led by U.S.-based GE, and French partners Alstom (ALSO.PA) and Schneider Electric (SCHN.PA) as possible buyers. Binding offers are expected for November 9 ahead of an Areva decision set for November 16.

Private equity fund CVC has pulled out of talks with General Electric (GE.N) about a possible joint bid for the power and transmission unit of France's Areva (CEPFi.PA), a French financial news service reported on Sunday. Spokesmen for the firms involved could not immediately be reached for comment. State-owned nuclear reactor group Areva is selling its T&D unit and has selected Japan's Toshiba (6502.T), a consortium led by U.S.-based GE, and French partners Alstom (ALSO.PA) and Schneider Electric (SCHN.PA) as possible buyers. Binding offers are expected for November 9 ahead of an Areva decision set for November 16.

"European Union regulators said Wednesday that they are investigating nuclear power non-compete deals between France's Areva SA and Germany's Siemens AG after Areva took over their joint venture. This adds another twist to a row between the two companies after Siemens pulled out of the Areva NP unit, the world's largest builder of atomic power plants, and struck a deal with Russia's Rosatom to develop nuclear reactors. Areva complained last year that Siemens' new deal broke the terms of a 2001 non-competition clause."

Areva has submitted a licence application to the US Nuclear Regulatory Commission (NRC) for its proposed Eagle Rock Enrichment Facility. Areva announced its selection of the Idaho site for a 3 million SWU per year centrifuge enrichment plant in May 2008, and has submitted applications for a share of the $2 billion being made available in loan guarantees for advanced front-end nuclear fuel cycle facilities under the US Department of Energy's (DoE's) programme to help boost clean energy technologies in the USA. A new Areva subsidiary, Areva Enrichment Services LLC (AES), was formed in December to take responsibility for the company's US enrichment services and to own and operate the Eagle Rock plant.

Siemens to sell its 34-percent stake to Areva S.A. * Says Areva to acquire Siemens' stake within three years * Says purchase price to be agreed upon by both parties (Adds details from Siemens statement and background) MUNICH, Jan 26 (Reuters) - Siemens AG (SIEGn.DE) will exit the nuclear venture Areva NP and plans to sell its 34-percent stake to majority holder Areva S.A. (CEPFi.PA), it said late on Monday, ahead of its annual shareholder meeting on Tuesday.

Areva has submitted to DOE the final part of its loan-guarantee application for its planned enrichment plant in Idaho, company spokesman Jarret Adams said December 2. Areva submitted a copy electronically last week and will submit a paper copy by the December 2 deadline, he said. Areva submitted in September the first part of its application for its Eagle Rock centrifuge enrichment plant. That application included a detailed description of the project and a financing strategy; the second part contains additional details to facilitate DOE?s due diligence review. USEC was the only other company to request loan guarantees for front-end facilities, filing both parts of its application for the planned American Centrifuge Plant in Piketon, Ohio, in July and August. The loan-guarantee requests for the Areva and USEC projects total $4 billion, double the $2 billion available for front-end facilities.

France may have painted itself into a corner by pushing state-owned nuclear power group Areva to sell its most profitable unit, and could end up weakening the very domestic industries it is trying to champion. The government, which owns 93 percent of Areva, must choose between three bids for the Areva's electricity transmission & distribution (T&D) business -- from GE, Toshiba, and a French consortium of Alstom and Schneider Electric -- each of which potentially hurts French economic interests in different ways. Should the government choose GE or Toshiba for the business, valued at 4 to 5 billion euros ($5.9-7.4 billion), it would in either case end up strengthening a company that competes with Areva in its core nuclear segment.

France may have painted itself into a corner by pushing state-owned nuclear power group Areva to sell its most profitable unit, and could end up weakening the very domestic industries it is trying to champion. The government, which owns 93 percent of Areva, must choose between three bids for the Areva's electricity transmission & distribution (T&D) business -- from GE, Toshiba, and a French consortium of Alstom and Schneider Electric -- each of which potentially hurts French economic interests in different ways. Should the government choose GE or Toshiba for the business, valued at 4 to 5 billion euros ($5.9-7.4 billion), it would in either case end up strengthening a company that competes with Areva in its core nuclear segment.

"The subtext of this little explanation from French nuclear giants AREVA is that it is using the people of Finland as guinea pigs in an experiment: Yes, we have faced challenges with the construction of the first EPR™ reactor, Olkiluoto 3 in Finland. AREVA will be the first to admit that this project is behind its ambitious original schedule and has been open about the entire process … This experience means that when AREVA begins construction of its next reactor, which we hope will be a U.S. EPR™ reactor in the United States, AREVA and its project teams will have completed several others internationally, giving us the experience, insight, and workforce to put us ahead of the game. Poor Finland, if only they'd waited a little longer, someone else would have been the test subject. As it is, France and China are also lined up for experimentation. Using the project management experience and incorporating lessons learned in Finland, AREVA's EPR™ reactors in France and China are on a much tighter schedule than their respective predecessors."

Areva will not be building a $2 billion uranium enrichment facility in Richland, instead picking a site close to the Idaho National Laboratory, Areva announced today. "While we had several attractive sites to choose from, we opted for Idaho Falls, which has strong ties to nuclear energy, and which welcomed Areva and its proposed enrichment facility to become a new member of its community," said Michael Murphy, president of Areva, in a statement.

Unqualified welders and badly-mixed concrete are just two among 1,700 "quality deviations" that have dogged the construction of Europe's first nuclear plant since Chernobyl. It has turned into a costly €2.3bn (£2.1bn) nightmare for Areva, the company, leading the severely delayed build at Olkiluoto, a tranquil, pine-forested island off the coast of Finland. But Rob Davies, director of UK new nuclear for the French state-owned group, insists Britain's fleet of new reactors will not meet in the same fate. According to Mr Davies, Britain is at the forefront of Areva's plans to show it can deliver a fleet of stations on time, in budget and without safety hitches. For the UK to meet its 2020 targets on cutting emissions - which may even be tightened at the Copenhagen summit next week - it will be vital for Areva to deliver a flawless reactor ready for EDF's first plant in 2017.

Unqualified welders and badly-mixed concrete are just two among 1,700 "quality deviations" that have dogged the construction of Europe's first nuclear plant since Chernobyl. It has turned into a costly €2.3bn (£2.1bn) nightmare for Areva, the company, leading the severely delayed build at Olkiluoto, a tranquil, pine-forested island off the coast of Finland. But Rob Davies, director of UK new nuclear for the French state-owned group, insists Britain's fleet of new reactors will not meet in the same fate. According to Mr Davies, Britain is at the forefront of Areva's plans to show it can deliver a fleet of stations on time, in budget and without safety hitches. For the UK to meet its 2020 targets on cutting emissions - which may even be tightened at the Copenhagen summit next week - it will be vital for Areva to deliver a flawless reactor ready for EDF's first plant in 2017.

"Areva Chief Executive Anne Lauvergeon on Monday blamed the French nuclear power company's humiliating loss of a multibillion-dollar reactor contract on a South Korean rival's willingness to "do anything" to win. In her first public comments since the United Arab Emirates last month picked a South Korean consortium over Areva for the prized deal, Lauvergeon was quoted in Le Monde as saying the strong euro hurt Areva by inflating the costs for its reactors. She also blamed poor coordination among the French energy companies who bid alongside it, including Electricite de France SA, Total SA and GDF Suez SA. "South Korea was ready to do anything to win, in terms of price and in state financing," Lauvergeon was quoted as saying."

Areva, the Paris-based nuclear vendor, has signed a contract to deliver 300 mt of uranium to Nuclear Power Corporation of India Ltd, Areva said Thursday. The quantity is sufficient to fuel a third of the Indian state-owned utility's operating reactor fleet, Areva said. Npcil, which operates about 4 GW of nuclear plant, has had to reduce the output of its reactors last year and this year for lack of sufficient uranium supply. Until this fall, members of the international Nuclear Suppliers Group were not allowed to trade with the country, which has not signed the Nuclear Nonproliferation Treaty.

* Rolls Royce, Balfour Beatty to work with France's Areva * Companies sign deals to build new UK nuclear plants LONDON, Dec 4 (Reuters) - Engine maker Rolls Royce and construction group Balfour Beatty said on Thursday they had would work with French nuclear reactor builder Areva to build a new generation of British power stations. The agreement cements growing Anglo-French cooperation to replace Britain's ageing nuclear power plants after France's EDF (EDF.PA: Quote, Profile, Research, Stock Buzz), the world's biggest nuclear energy producer, agreed in September to buy British Energy, and with it Britain's nuclear power industry, in a 12.5 billion pound ($18.4 billion) deal. "Rolls-Royce and Areva have agreed a memorandum of understanding and will work together on supply chain development, manufacturing and engineering services," Rolls Royce said in a statement.