Operations
Transmission and Distribution: AREVA boosts its division’s growth - April 18, 2007


Following the publication of AREVA’s annual results confirming the recovery of its Transmission and Distribution (T&D) division, the Group has launched a new three-year plan for AREVA T&D.

In 2006, AREVA T&D achieved the key objective of its first three-year plan (2004-2007) one year ahead of schedule: achieving profitability equal to its major competitors. The division capitalized both on the results of its first plan and the effects of a booming market. AREVA T&D’s order intake has grown by almost 50% over the past three years to €4.3 billion, increasing its global market share from 8% to 10%.

With the launch of the second development plan (2007-2010), the Group’s aim is to turn AREVA T&D into the benchmark for the industry. Within the plan’s timescale, the objective is to achieve €5 billion turnover and an operating income of 10% through the combination of organic and external growth. Projects initiated in the first period, such as product portfolio optimization, adaptation of the industrial footprint, improved productivity, cost reduction and sourcing globalization, will be continued.

New areas of development will also be initiated during the second plan, and will include increased market share on the ultra high-voltage market, strengthened presence in the electro-intensive industries segment, and increased investment in research, development and production capacities. The plan also entails reinforcing the T&D division’s presence in Europe and in high-growth potential regions such as the Middle East and Asia. In India, where AREVA T&D has seen an annual growth in its orders of 40%, the division will invest €60 million over the next three years to modernize its production sites and build two new plants.

AREVA T&D intends to continue with acquisitions and partnerships to strengthen its core business and secure the supply of key components.

The acquisition of the high-voltage activity of the Ritz company in 2006, and of Passoni and Villa in 2007 are both fully in line with this approach.

Philippe Guillemot, Chairman & CEO of AREVA T&D said, “Thanks to the success of our first plan we can be even more ambitious by becoming the benchmark for the industry in all areas.”


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