Areva’s Nuclear Program Still a Priority Despite Restructuring Plan

Mining Weekly reported that despite Areva Group’s extensive restructuring initiatives, the company’s proposed nuclear program in South Africa remains a key target market. Areva has opted to cut costs moving forward and will be far more selective in the market opportunities it pursues, however, its plan for 9,600 megawatt nuclear build program in South Africa remains a priority that won’t be affected by restructuring.

As quoted in the market news:

Areva has announced plans to cut costs by €1-billion by 2017, dispose of non-core businesses and strengthen relations with State-owned utility EDF in an effort to realign the business to a weaker-than-anticipated outlook for the global nuclear market.

The company, which is also dealing with several “difficult projects” and lower prices and demand for enriched uranium, expects the global installed nuclear base to grow by only 2.5% a year between now and 2030.

The project pipeline is being re-prioritized, with Areva indicating that it will be far more selective in the market opportunities it pursues outside of Europe and China, with the latter expected to have the largest installed nuclear base by 2030, ahead of the US and France.

However, Areva South Africa MD Dr Yves Guenon confirms that South Africa, which is considering a 9 600 MW nuclear build program, remains a key target market and that the restructuring will not fundamentally alter its bid package, should the country eventually launch a procurement process.

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