Areva
915549
225864528
2008-07-15T19:30:11Z
65.206.71.3
/* Energy company */
{{Cleanup|date=July 2008}}
[[Image:Areva1.jpg|300px|right|thumb|The AREVA Tower located in Europe's largest [[Central Business District|CBD]], [[La Défense]], [[Paris]].]]
'''AREVA''' ({{Euronext|CEI}}) is a [[Government-owned corporation|French public]] [[multinational]] industrial [[Conglomerate (company)|conglomerate]] that deals in [[energy]], especially [[nuclear power]]. It was created on 3 September, 2001, by the [[merger]] of [[Framatome]] and [[Cogema]] (now [[AREVA NC]]). Its main [[shareholder]] is the French owned company CEA, but the [[Germany|German]] company [[Siemens]] also retains 34% of the shares of AREVA's subsidiary, [[AREVA NP]], in charge of building the [[European Pressurized Reactor]] <ref name=Parisien> Marc Lomazzi, "Nucléaire: les dessous de l'accord entre la France et la Libye", ''[[Le Parisien]]'', 13 August 2007 [http://www.leparisien.fr/search/article.html?ID=DISPLAY1_0&index=1&DI_INDEX=1&docid=0708138285886.xml@LPA&titre='Nucl%E9aire%20:%20les%20dessous%20de%20l%20accord%20entre%20la%20France%20et%20la%20Libye']{{fr icon}}</ref>.
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]].
== Energy company ==
AREVA is the world-leading company in nuclear energy.<ref name=Bloomberg> Yoshifumi Takemoto and Alan Katz, "Samurai-Sword Maker's Reactor Monopoly May Cool Nuclear Revival ", ''Bloomberg.com'', 13 March 2008 [http://bloomberg.com/apps/news?pid=20601109&sid=aaVMzCTMz3ms]</ref> It is the only company with a [[Vertical integration|presence in each industrial activity linked to nuclear energy]]: [[uranium mining|mining]], chemistry, enrichment, combustibles, services, engineering, nuclear propulsion and reactors, treatment, recycling, stabilization, and dismantling. AREVA also claims to offer technological solutions for CO<sub>2</sub> free energy; and produces [[earth leakage circuit breaker]] technologies.{{Fact|date=December 2007}}
Three main subsidiaries form the core of AREVA:
* [[AREVA NP]] (formerly Framatome ANP) - Nuclear Power: develops and builds nuclear reactors; [[Siemens AG|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 from [[Alstom]] on 9 January, 2004. <ref>[http://www.AREVA.com/servlet/news/pressroom/pressreleases/cp_2004_01_09-c-PressRelease-cid-1073577262977-p-1028798801053-en.html AREVA signs the agreement for the acquisition of ALSTOM's Transmission and Distribution activities], ''AREVA'' press release, 9th January 2004</ref>
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 [[Nuclear reprocessing|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]], the former [[United States|U.S.]] [[United States Secretary of Energy|Secretary of Energy]], was named non-executive chairman of AREVA Inc., the U.S. subsidiary of AREVA <ref name=VN> {{cite news | title=L’ancien secrétaire à l’Énergie de l’administration Bush, Spencer Abraham, est nommé directeur de la filiale états-unienne d’AREVA | publisher=[[Voltaire Network]] | date=2006-03-09 | url=http://www.voltairenet.org/article136261.html}} {{fr icon}} [http://www.voltairenet.org/article136727.html Spanish translation]) </ref>.
[[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 had suspended the privatization process.
== History ==
AREVA has its roots in Framatome{{Fact|date=July 2008}}, which was founded in 1958 by several companies of the French industrial giant The Schneider Group along with Empain, Merlin Gérin, and the American [[Westinghouse Electric Corporation (1886)|Westinghouse]], in order to license Westinghouse's PWR technology and develop a bid for Chooz 1 in Belgium. Called Franco-Américaine de Constructions Atomiques (Framatome), the original company consisted of four engineers, one each from each of the parent companies. The original mission of the company was to act as a nuclear engineering firm and to develop a nuclear power plant that was to be identical to Westinghouse's existing product specifications. The first European plant of Westinghouse design was by then already under construction in Italy.
Meanwhile, the [[Électricité de France (EDF)]], the French government-owned electric utility, in opposition to the [[Commissariat à l'énergie atomique (CEA)]], maintained an interest in PWR technology. The Chooz contract offered the EDF, which joined with the Belgian electric utilities to call for the Chooz bids, the opportunity to explore PWR without offending French national pride in its homegrown GCR technology.{{Fact|date=December 2007}} By the beginning of 1960, only two bids remained in contention; midway through 2006 Framatome received informal permission to begin design work on the Chooz reactor. A formal contract was signed in September, 1961 for Framatome to deliver a turnkey system, that is, not only the reactor, but an entire, ready-to-use system of piping, cabling, supports, and other auxiliary systems, propelling Framatome from a nuclear engineering firm to an industrial contractor.
By 1981, France was pressing for even more control of Framatome.{{Fact|date=December 2007}} In January, Westinghouse agreed to sell its remaining 15 percent share to Creusot-Loire, which now owned 66 percent, and to cede complete marketing independence to Framatome. In February, the Belgian Baron Empain sold his 35 percent interest in Creusot-Loire to Paribas, a French government-linked banking group.
The May 1981 Socialist electoral victory in France intensified calls for greater government control of Framatome.{{Fact|date=December 2007}} A January 1982 company reorganization simultaneously strengthened French public and private control of the company by allowing Creusot-Loire to increase its share of the company while increasing [[CEA]] say in the running of the firm.
==Nuclear Reactor Designs==
=== EPR ===
{{see|European Pressurized Reactor}}
AREVA has been constructing [[Nuclear power in Finland|Finland]]'s fifth [[Olkiluoto Nuclear Power Plant|reactor in Olkiluoto]] since 2005. The reactor, which is one of the first of the new, third generation reactors (EPR - [[European Pressurized Reactor]]), was supposed to begin producing electricity in 2009, but the project has been delayed because of technical difficulties and quality problems. In August, 2007 the production start was postponed to 2010-2011 <ref name=SN>[http://tempsreel.nouvelobs.com/actualites/economie/20070822.OBS1570/la_chine_aurait_annulee_sa_commande_depr.html?idfx=RSS_notr La Chine aurait annulée sa commande d'EPR], ''[[Le Nouvel Observateur]]'', 22 August 2007 {{fr icon}}</ref>. During the political debate in 1992, the official price estimate was 2500M euros.[http://www.videsprojekti.lv/faili/Sab.info/haverkamp_fact_sheet_en.pdf]. In 2004, a contracted fixed price was established as 3200M euros. In its 2006 Annual Report,AREVA recorded a writedown of 507M euros associated with the delay. A Jan 2008 financial press estimate pegged the overrun so far at 1.5B euros [AFX News Limited AREVA proposes to sell 2 EPR reactors to South Africa's Eskom UPDATE 01.31.08].
The second EPR in France is currently under construction at the [[Flamanville Nuclear Power Plant]].[http://www.world-nuclear-news.org/newNuclear/Construction_of_Flamanville_EPR_begins-041207.shtml] Other EPRs were to be sold to the [[Nuclear power in the United Kingdom|United Kingdom]] and to the [[Nuclear power in the United States|United States]] (''See below'').
On August 13, 2007 the French newspaper ''[[Le Parisien]]'' alleged that the [[Libya and nuclear technology|Franco-Libyan civil nuclear power agreement]] signed by President [[Nicolas Sarkozy]] did not concern desalinization of sea water, as claimed by the French government, but instead focused in particular on selling the EPR to Libya, a contract potentially worth $3 billion<ref name=Parisien> Marc Lomazzi, "Nucléaire: les dessous de l'accord entre la France et la Libye", ''[[Le Parisien]]'', 13 August 2007 [http://www.leparisien.fr/search/article.html?ID=DISPLAY1_0&index=1&DI_INDEX=1&docid=0708138285886.xml@LPA&titre='Nucl%E9aire%20:%20les%20dessous%20de%20l%20accord%20entre%20la%20France%20et%20la%20Libye']{{fr icon}}</ref>. The Parisian newspaper cited Philippe Delaune, deputy to the deputy director of international affairs for the [[Commissariat à l'énergie atomique|CEA atomic agency]], which is the main share-holder in AREVA <ref name=Parisien/>. Following allegations that the deal had been related to the [[HIV trial in Libya|release of the Bulgarian nurses]], the [[French Socialist Party]], through the spokesperson [[Jean-Louis Bianco]], declared that this deal was "geopolitically irresponsible". <ref name=Parisien/> The [[German government]] also denounced the agreement <ref name=Parisien/>.
In November 2007, AREVA agreed to a €8 billion deal with the China Guangdong Nuclear Power Group to supply them with two EPRs in [[Taishan]], [[Guangdong]], [[China]]. Under the terms of the agreement, AREVA will also help operate the plant, including the reprocessing of spent fuel. <ref name=NYT>John Tagliabue, "China Deal Gives Lift to Revival of Fission", ''[[New York Times]]'', 27 November 2007 [http://www.nytimes.com/2007/11/27/business/worldbusiness/27nuke.html] </ref>
===Atmea I===
The Atmea I is 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 are targeting power output of about 1100 MWe, but the design could be scalable to produce different levels of power output to fit different size grids. Current plans call for design certification to be completed in about 3 years.{{Fact|date=December 2007}}
== 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 and has consolidated sales revenue of €10.863 billion. <ref>[http://www.AREVA.com/servlet/BlobProvider?blobcol=urluploadedfile&blobheader=application%2Fpdf&blobkey=id&blobtable=Downloads&blobwhere=1170259268101&filename=CP+CA+2006+VA.pdf&csblobid=1033582133999 AREVA's press release] </ref> In 2006, ''[[Fortune Magazine]]'' reported that AREVA was the "Most Admired Global Energy Company."<ref>[http://money.cnn.com/magazines/fortune/globalmostadmired/snapshots/4081.html CNNMoney]</ref>
AREVA has partnered with engineering contractors to aid in the [[reconstruction of Iraq]] by manufacturing equipment to construct electrical substations.<ref>[http://www.symbion-power.com/experience/sub_farabi.html Farabi and Jamila, Iraq Substations]</ref>
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. <ref>[http://www.neimagazine.com/story.asp?sectionCode=132&storyCode=2045247 Nuclear Engineering International<!-- Bot generated title -->]</ref>
AREVA has also signed a memorandum of understanding with [[Mitsubishi Heavy Industries]] for the establishment of a joint venture for their next reactor design.<ref>[http://www.japancorp.net/Article.Asp?Art_ID=14804 AREVA and MHI Sign Memorandum of Understanding on the Establishment of a Joint Venture for Their New Reactor<!-- Bot generated title -->]</ref>
=== Niger (mines) ===
[[Image:MineArlit1.jpg|thumb|right|250px|The [[Open-pit mining|open pit]] [[Uranium mining|uranium mine]] at [[Arlit]], [[Niger]].]]
AREVA owns two mines in [[Arlit]], [[Niger]], where it employs 1,600 people; Niger is one of the world's three largest [[uranium]] exporters. Nigerien uranium account for 30% of French consumption and 32% of [[Economy of Niger|Niger's exports]], but less than 5% of Niger's [[Gross domestic product|GDP]] <ref name=C2> "Atomes pas très crochus au Niger" in ''[[Le Canard enchaîné]]'', 22 August 2007, p.4 {{fr icon}}</ref>. The increase in the cost of uranium on world markets in 2006 (more than 46% <ref name=C2/>) will enable Niger to triple its revenues sourced from AREVA <ref name=C2/>. On 25 July 2007, the CEO of AREVA-Niger, Dominique Pin, was expelled from Niger (although he was in Paris at the time) on charges of supporting the [[Tuareg Rebellion]] <ref name=C2/>. 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 August 1, 2007 <ref name=C2/>. Furthermore, [[Laouel Kader Mahamadou]], who had resigned from his functions as secretary general of the Nigerien government to take a consulting job with AREVA-Niger, was asked by the Nigerien [[DGSE]] to remain in Niger instead of flying to France for an integration workshop until a "clarification of the situation" could be obtained<ref> [http://www.planeteafrique.com/Republicain-Niger/index.asp?affiche=News_Display.asp&ArticleID=4045&rub=Actualit%E9s Conflit armé dans le nord. Des morts et des réfugiés], ''[[Le Républicain-Niger]]'', 23 August 2007 {{fr icon}}</ref>.
The population of Niger was exposed to a serious [[famine]] in 2005. AREVA donated 130,000 euros in June 2005 to the food crisis coordination group of Niger, and 120,000 euros in July in the form of two planes loaded with food and organized 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. <ref> {{cite news | title=Peu enrichi à l'uranium ("Not much enriched by uranium") | publisher=[[Le Canard Enchaîné]] | date=2005-08-03 | url=http://www.canardenchaine.com/accueil.html}} {{fr icon}} </ref>.
=== 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 of the mine is owned by [[Cameco|Cameco Corporation]].
=== South Korea ===
{{See|Nuclear power in South Korea}}
In 2007, AREVA signed a ten year deal with the South Korean public company [[KHNP]] to enrich uranium in its forthcoming [[Georges Besse II enrichment plant]]. The deal is worth over 1 billion euros <ref> "S.Korea signs uranium enrichment deal with France", ''[[Reuters]]'', 19 June 2007 [http://www.reuters.com/article/worldNews/idUSSE036400720070619 on-line] {{en icon}} </ref>.
=== United States ===
{{See|Nuclear power in the 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 the N° 1 US supplier in nuclear energy products and services, in Energy Management Systems and in Energy Market Systems. AREVA NC Inc.'s headquarters are located in [[Bethesda, MD]], while AREVA NP Inc.'s North American Headquarters are located in [[Lynchburg, VA]].
In February 2002, the [[U.S. Secretary of Energy]] [[Spencer Abraham]] announced the [[Nuclear Power 2010 Program]], which included plans for 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.
=== China ===
In China AREVA won an 8 billion euro ($11.9 billion) agreement to build nuclear reactors, a record for the French company. The long-expected announcement came at the start of formal talks in Beijing between French President Nicolas Sarkozy and his Chinese counterpart, Hu
Jintao.<ref>http://www.mercurynews.com/healthandscience/ci_7562266?nclick_check=1</ref>
``France wants to build a complete partnership for the future with China,'' Sarkozy said today in Beijing during a joint briefing with Chinese President Hu Jintao. ``China's spectacular development is a chance for the world.''<ref>[http://www.bloomberg.com/apps/news?pid=20601087&sid=apreTFF295OE&refer=home Bloomberg.com: Worldwide<!-- Bot generated title -->]</ref>
French, American and Russian suppliers have been vying for contracts in China, which plans to build as many as 32 nuclear plants by 2020 to meet surging power demands while cutting emissions and reducing reliance on imported oil. U.S. and French politicians have been lobbying Beijing hard on behalf of their companies.
"When you look at China's energy problems, nuclear energy is not the whole answer, but it is part of the answer," AREVA CEO Anne Lauvergeon told a news conference.
The deal allows AREVA to "consolidate its presence in one of the most dynamic markets in the world with enormous potential," Lauvergeon said.
State-run AREVA said the contract with state-run China Guangdong Nuclear Power Corp. was a record for the French company. The third-generation pressurized water reactors, designed by AREVA's Framatome subsidiary, would boost CGNPC's output by 3,400 megawatts, AREVA said earlier.
The contract also calls on AREVA to provide uranium to fuel the reactors through 2026. The reactors are to be built by 2013-2014 in the city of Taishan in Guangdong province, an export manufacturing powerhouse with heavy demand for power and high levels of industrial pollution.<ref>http://www.mercurynews.com/healthandscience/ci_7562266?nclick_check=1</ref>
== Other activities ==
{{Unreferencedsection|date=July 2008}}
AREVA is also involved in [[military technology]], designing for example the nuclear reactor for the [[French Barracuda class submarine]].
One of AREVA's subsidiaries, [[Euriware]] (founded in 1991) specializes 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]]. In May 2005 it sold all of its stakes in [[Assystem]], as well as [[FCI]] in October 2005 (sold to the [[private equity]] firm [[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 (institution)|Bruegel]] think tank.
== 2007 fine ==
In January 2007 AREVA was fined €53 million by the [[European Commission]] for [[Price fixing cases|rigging]] EU electricity markets through a [[cartel]] involving 11 companies, among which [[ABB]], [[Alstom]], [[Fuji]], [[Hitachi Japan]], [[AE Power Systems]], [[Mitsubishi Electric Corp]], [[Schneider]], [[Siemens]], [[Toshiba]] and [[VA Tech]] ELIN <ref name=fine> [http://www.euractiv.com/en/energy/eu-cracks-electricity-gear-cartel/article-161169 EU cracks down on electricity-gear cartel], ''[[EurActiv]]'', 25 January 2007 {{en icon}}</ref>. 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."<ref name=fine/> Siemens was given a fine of €396 million, more than half of the total, for its alleged leadership role in the cartel.
Areva is not accused of any cartel involvement other than through the acquisition of an Alstom unit in January 2004. "This subsidiary was acquired by the Areva group towards the end of the infringement, in January 2004. The parent entities of the Areva group share a joint liability with that subsidiary for the period after its acquisition." [http://europa.eu/rapid/pressReleasesAction.do?reference=IP/07/80&format=HTML&aged=1&language=EN&guiLanguage=fr] "A few months before the cartel ended Alstom sold the unit involved to Areva, which knew nothing of the cartel. It [Areva] and Alstom have joint liability for 53.6 million, which they must decide how to split." [http://www.reuters.com/article/sphereNews/idUSL2477822220070125?sp=true&view=sphere]
[[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" <ref> [http://news.bbc.co.uk/1/hi/business/6296985.stm Vote call by Siemens shareholders], ''[[BBC]]'', 25 January 2007 {{en icon}}</ref>.
== 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.]].
==Enrichment Facility==
AREVA Inc., based in [[Bethesda]], [[Maryland]], announced on [[2008]]-[[05-06]] that it will seek all necessary approval to build a [[uranium]] [[enrichment]] facility in Bonneville County, [[Idaho]], about twenty miles west of [[Idaho Falls]] and near the [[Idaho National Laboratory]].<ref>http://www.areva.com/servlet/cp_06_05_2008-c-PressRelease-cid-1209581724309-en.html</ref>
== References ==
{{reflist|2}}
==See also==
{{portal|energy}}
{{portal|nuclear technology}}
* [[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==
* [http://www.areva.com AREVA Website]
* [http://energyexperts.areva.com/areva_us.html AREVA Energy Experts] (The AREVA TV Animation)
* [http://www.forbes.com/home/feeds/afx/2005/08/23/afx2188477.html Report on AREVA] dropping their bid for Westinghouse in August, 2005
* [http://www.tvo.fi/index_eng.shtml Official site of the Olkiluoto reactor project in Finland]
* [http://multinationalmonitor.org/hyper/issues/1983/07/collins.html The Multinational Monitor, July 1983,Vol. 4, Number 7, International Monetary Fund]
* [http://www.answers.com/topic/framatome-sa?cat=biz-fin Framatome SA Company History]
{{CAC Mid 100}}
[[Category:Companies of France]]
[[Category:Companies of Germany]]
[[Category:Nuclear power companies]]
[[Category:Nuclear technology in France]]
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