China: AREVA signs agreements covering reactor design and the supply of nuclear components

Press release

FACTS AND FIGURES / REACTORS ET SERVICES

December 21, 2009

During French Prime Minister François Fillon’s visit to China, Qian Zhimin, chairman of CGNPC (China Guangdong Nuclear Power Corp) and Anne Lauvergeon, CEO of AREVA, will sign an historic agreement for the engineering and development of new nuclear power plants.

Under the terms of the agreement, AREVA and CGNPC will create WECAN, a joint venture in which CGNPC will have a 55% stake and AREVA 45%. Based in Shenzhen, WECAN will be up and running in 2010, with a headcount of more than 2000. The company will be responsible for engineering and procurement for the nuclear islands of the new plants to be built in China by CGNPC and AREVA. These are EPR™ reactors and 1000 MWe plants identical to those already built by AREVA at Daya Bay and Ling Ao.

AREVA and CGNPC will also sign an agreement under which WECAN will possibly provide nuclear island engineering and procurement services outside China.

AREVA, via its subsidiary AREVA Dongfang, has besides won a contract worth close to 200 million euros to supply 24 reactor coolant pumps for CGNPC. These key primary system components will be installed in the 1000 MWe reactors. This is the third agreement to be signed by the two partners and brings AREVA Dongfang’s order backlog to a total of 60 reactor coolant pumps.

Lastly, the group hails the joint declaration from France and China, calling for industrial cooperation between the two countries in the nuclear sector. It confirms the commitment of both sides to lasting cooperation in the nuclear fuel recycling sector.

"These major agreements are an extension of the general partnership signed with CGNPC at the end of 2007 and strengthen AREVA's lasting commitment to Chinese industry. Yet again, this demonstrates the pertinence of the group’s integrated industrial model which allows us to make sales offers for the entire nuclear cycle", said Anne Lauvergeon who also expressed her satisfaction with the progress of the Taishan EPR™ in Guangdong province. Structural steelwork has begun for the nuclear and conventional islands of Unit 1 and 6000 people are currently on site. Steam generator and reactor vessel manufacture is also underway.

AREVA has been present in China for 30 years and employs 3500 people in the country. The group participated in building 6 of China’s 11 operating nuclear plants.