IIPM GOTA Report
Abhishek Devra Amandeep Singh
Manav Patel Prateek Bhatia
“Practical exposure of the subject makes theoretical and practical knowledge more interesting.”
We are very fortunate in getting theoretical knowledge from our well known B-School, IIPM,
but for being perfectionist in the field of management, working in real world must. For the same
purpose we decided to present this project for my GOTA Trip; that is “AREVA.”
No words of appreciation are enough to thank Indian Embassy, which gave us chance to
associate with this esteemed organization and encouraged us to go ahead with the challenging
topic. We thank the embassy for accommodating us and their understanding attitude.
We would like to thank IIPM for such an innovative idea for exposing the students first hand to
the corporate world. During the period of preparation and analysis, we learnt many new things
including the concept of implementation of theoretical knowledge in practical field and foreign
This report is the sincere attempt of summarizing all the meaningful information that we could
gather during the preparation. We are deeply indebted to many people who have contributed in
making my thesis project a gaining experience as it stands today.
We are also thankful to our honorable and distinguished professors who helped us timely as and
when we required some assistance which indeed makes us able to do this sensible project. We
must admit that we immensely enjoyed and processed our report, which will add up to our
knowledge and led us to become a sound manager.
All over the world, AREVA provides its customers with solutions for carbon-free power
generation and electricity transmission. With its knowledge and expertise in these fields, the
group has a leading role to play in meeting the world’s energy needs.
Ranked first in the global nuclear power industry, AREVA's unique integrated offering
covers every stage of the fuel cycle, reactor design and construction, and related services.
In addition, the group is expanding its operations in renewable energies, including biomass,
wind power and fuel cells. AREVA is also a world leader in electricity transmission and
distribution and offers its customers a complete range of solutions for greater grid stability
and energy efficiency.
Sustainable development is a core component of the group’s industrial strategy. Its 75,000 employees work every day to
make AREVA a responsible industrial player that is helping to supply ever cleaner, safer and more economical energy to the
greatest number of people.
Simplified legal organizational chart
as of 12/31/2008
Breakdown and changes in 2008 sales
as of 12/31/2008
Changes in operating income,
in millions of euros
Net income group share
Net income group
share, as of
Changes in net income group share
in millions of euros
as of 12/31/2008
Breakdown of workforce by region
Breakdown and changes in workforce
With manufacturing facilities in 43 countries and a sales network in over 100, the group is aiming to strengthen its
international presence by developing a balance between Europe, North America and Asia.
The AREVA group is organized around a Supervisory Board, an Executive Board and
an Executive Committee assisted by the Corporate Departments.
These bodies supervise and pilot the group operations, divided into four divisions organized
as business units.
Executive Committees are standard management practice at AREVA. There are two such committees: the ExCom and the
The ExCom was organized when AREVA was established. It meets twice monthly.
The ExCom is the group’s internal decision-making and information body.
Chief Executive Officer of AREVA
Chief Operating Officer of AREVA, member of the Executive Board
Chief Financial Officer of AREVA
Chief Operating Officer of AREVA NC, member of the Executive Board
Member of the Executive Board, President and CEO of AREVA NP
Chairman and CEO of AREVA T&D
Executive Vice President, Human Resources
AREVA Senior Vice President, International & Marketing
AREVA Industrial Senior Vice President
Bernard de Gouttes, Senior Vice President, Compliance of the group, is the secretary of the ExCom.
The Nuclear Executive Committee was created in December 2004 to bolster synergies among the nuclear businesses. It
meets two or three times a month.
The Nuclear ExCom makes decisions on any issue with a strong strategic, commercial or financial dimension for the nuclear
businesses (AREVA NC, AREVA NP and AREVA TA).
• Anne Lauvergeon - Chief Executive Officer of AREVA
• Gérald Arbola - Chief Operating Officer of AREVA, member of the Executive Board
• Didier Benedetti - Chief Operating Officer of AREVA NC, member of the Executive Board
• Alain-Pierre Raynaud - Chief Financial Officer of AREVA
• Rémy Autebert - President of AREVA Japan
• Jacques Besnainou - President of AREVA Inc.
• Michael W. Rencheck - President and CEO, AREVA NP Inc.
• Luc Oursel - President and CEO, AREVA NP, member of the Executive Board
• Michael McMurphy - Executive Vice President of the Mining - Chemistry - Enrichment business units
• Ulrich Graeber - AREVA NP GmbH (Germany)
• Joël Pijselman - AREVA Industrial Senior Vice President
• Pierre Laporte - Senior Vice President, Corporate Legal Department, and Corporate General Counsel
• Claude Jaouen - Senior Executive Vice President of AREVA NP in charge of the Plants Business Unit
Substitute members and committee members for subjects concerning them:
• Bernard de Gouttes - Senior Vice President, Compliance
• Dominique Mockly - Chairman and CEO of AREVA TA
• Robert Pistre - Vice President in charge of the Develpment of Senior AREVA Executives of AREVA group
• Olivier Wantz - Chief Financial Officer of AREVA NP
• Christian Petit - Chief Financial Officer of AREVA NC
• Bertrand Durrande - Executive Vice President, Renewable Energies business unit
• Guillaume Dureau - Executive Vice President, Equipment business unit
Jean-Pol Poncelet, Senior Vice President, Substainable Development and Continous Improvement, is the secretary of the
The Corporate Departments assist the Executive Committee in defining and implementing the group's strategy. They
monitor subsidiaries' performance and promote best practices in management, communications, environment, sustainable
Human Resources International development
Philippe Vivien Dominique Mockly
Safety, health, security,
Development Strategy, Mergers and
and Continuous Acquisitions
Progress Jean Huby
Research and Innovation
Legal Affairs Compliance
Pierre Laporte Bernard de Gouttes
Purchasing Information Systems
Patrick Champalaune Benoît Tiers
Protection of Assets
AREVA is managed by an Executive Board which performs its duties under the control of a Supervisory Board.
• The Supervisory Board exercises ongoing oversight of the Executive Board’s management of AREVA,
• It deliberates on the overall strategy of AREVA and of the group,
• It approves the annual budgets and multi-year plans of AREVA and of its direct subsidiaries,
• It provides advance approval to the Executive Board to conclude transactions that the Executive Board cannot accomplish
without such authorization.
The Supervisory Board is required to meet at least once quarterly.
In 2008, the Supervisory Board met 8 times.
Members as of April, 30, 2009
15 Members, including
4 Independent members
The members of the Supervisory Board are appointed by the shareholders and by holders of voting right certificates, except
for employee-elected members of the Board and representatives of the French government. The members of the
Supervisory Board serve for a term of five years.
The Supervisory Board has established four special committees. It determines their composition, responsibilities and
compensation, if any, for its members, who report to him in fulfilling their duties.
The Committee members are appointed from among the members of the Supervisory Board.
Jean-Cyril Spinetta - Chairman
• The Strategy Committee regularly examines the strategic objectives of the company and of its main subsidiaries,
• It assesses the merits and consequences of important strategic decisions proposed by the Executive Board,
• It ensures that the group’s strategic policy is applied,
• It undertakes studies and provides guidance as it deems necessary.
Guylaine Saucier - Chairman
• The Audit Committee contributes to the definition of the group’s accounting, financial and business ethics standards,
• It undertakes studies at the request of the Supervisory Board or on its own initiative,
• It reviews proposed budgets, the annual financial statements and multi-year plans,
• It verifies the quality of financial information made public by the company,
• It hears the Statutory Auditors to support the Supervisory Board’s control mission,
• It recommends successors or term renewals for the Statutory Auditors,
• It establishes a risk map and estimates resources needed to manage risk.
Compensation and Nominating Committee
Jean-Cyril Spinetta - Chairman
• The Compensation and Nominating Committee recommends compensation levels, pension plans and in-kind benefits for
the group's executives,
• It reviews implementation of stock purchase plans for executives, management and employees,
• It reviews the background of persons approached to sit on the Executive Board,
• It gives its opinion on executive appointments to the group's first-tier companies.
End-of-Life-Cycle Obligations Monitoring Committee
François David - Chairman
• Monitoring of the portfolio constituted by AREVA to cover future cleanup and dismantling expenses.
• Evaluation of future facility cleanup and dismantling expenses in applicable group companies.
• Review of operating and control procedures for the funds needed to cover these expenses.
• Review of the financial asset management program corresponding to these future expenses.
When the AREVA group was created, it adopted the legal status of a business corporation (Société Anonyme) with a
Supervisory Board and an Executive Board.
Full authority is vested in the Executive Board to act on behalf of the company with regard to third parties in all
circumstances, except when authority is expressly attributed by law to the Supervisory Board or to the Meeting of
Shareholders. The Executive Board meets whenever AREVA’s interest so requires.
The members are appointed by the Supervisory Board and serve a 5-year term.
Chief Executive Officer of AREVA
Member of the Executive Board, Chief Operating Officer of AREVA
Member of the Executive Board, Chief Operating Officer of AREVA NC,
in charge of the group's research policy
Member of the Executive Board, President and CEO of AREVA NP
Bernard de Gouttes, Senior Vice President, Compliance for the Group, is the secretary of the Executive Board.
• Examination of the REpower deal
• Approval to carry out the Comurhex II conversion plant project
• Approval to set up a joint venture between AREVA T&D Holding and Sunten
• Approval of AREVA’s acquisition of UraMin
• Approval of AREVA’s acquisition of a 51% stake in Multibrid
• Approval of the 2008-2012 Strategic Action Plan
• Approval of the 2008 budget proposal
• Approval of AREVA’s buy out of 70% of Koblitz.
• Review of the GBII project
• Acquisition of SFARSTEEL
• Review of the strategic action plan
• Review of the Research and Innovation policy
• Progress update on the OL3 project execution
• Creation of a subsidiary in Canada
SCIENCE AND ETHICS COMMITTEE
To continue its strides forward, AREVA has sought the counsel of prominent individuals from the community, creating its
own Science and Ethics Commission.
Chaired by François Ewald, this commission is a think tank focused on public perceptions of science and technology, the
role of the company in its environment and other important subjects. It also formulates recommendations to the Chairman of
the Executive Board.
The independent members
Roger Balian: Chairman of the Société française de physique, Member of the Académie des sciences
Francis Balle: Professor at the University of Paris II, former Member of the Conseil Supérieur de l’Audiovisuel (CSA -
French audiovisual authority)
Geneviève Barrier-Jacob: Professor Emeritus at the Faculté Necker - Enfants Malades, former Director of the Samu de
Paris emergency medical service and former Vice Chairman of the Comité national consultatif d’éthique
Christian de Boissieu: Chairman of the Conseil d’analyse économique, Professor at the University of Paris I - Panthéon
Edouard Brezin: Professor Emeritus at the Université Pierre et Marie Curie, Member of the Laboratoire de physique
théorique de l’École normale supérieure, Honorary Professor at École Polytechnique, Member of the Académie des
Georges Charpak: Nobel Prize in Physics
Jean-Marie Colombani: Journalist, Chairman of JMC Média
François Ewald: Professor at the Conservatoire national des arts et métiers, Chairman of AREVA’s Science and Ethics
James Lovelock: Companion of Honour, Commander of the Order of the British Empire, Member of the Royal Society,
Honorary Visiting Fellow of Green College, Oxford University
Roland Masse: Member of the Académie des technologies, former Chairman of the Offi ce de protection contre les
rayonnements ionisants (OPRI)
Érik Orsenna: Writer, Member of the Académie française
Michel Serres: Science historian, Member of the Académie française
Alain Touraine: Sociologist, Chief Scholar at the École des hautes études en sciences sociales
Maurice Tubiana: Former Chairman of the Académie de médecine, Member of the Académie des sciences, Honorary
Director of the Institut Gustave Roussy, Honorary Chairman of the Centre Antoine-Béclère, Honorary Chairman of AREVA’s
Science and Ethics committee.
The AREVA members
Anne Lauvergeon: Chief Executive Officer
Alain Bucaille: Senior Vice President, Research and Innovation
Bernard de Gouttes:Senior Vice President, Compliance
Olivier Loubière: Business Ethics Advisor
Our commitment to sustainable development
Processes and tools serving a goal that has become a way of living and acting
An inclusive, consistent approach nurtured by experience and receptiveness.
When AREVA was established in September 2001 through the combination of several different entities, the Executive
Board - led by its Chief Executive Officer, Anne Lauvergeon - made sustainable development the keystone of its industrial
Aware of the responsibilities that its leadership position carries, and of the role of nuclear power and electricity networks in
the planet's energy challenges, the group draws on proven safety and quality practices and on its tradition of precision and
risk management to unite entities' cultures around sustainable development.
To translate this choice into reality, AREVA integrates sustainable development into its business strategy and its
management practices via a continuous improvement initiative.
Sustainable development at the core of strategy and management
Integrated into the general business and budgetary management process, sustainable development objectives are entirely
part of management and facilitate dialogue between the units and top management.
The group's sustainable development policy is served by a commitment to ongoing improvement. It is implemented through
a continuous improvement process that revolves around 10 commitments and is underpinned by specific management
criteria that enable each entity to assess its own performance and define performance improvement plans that are
consistent with the overall objectives. This process has led to the establishment of social and environmental performance
Dialogue: listening and accountability
AREVA assumes its responsibilities as a corporate member of society. Because its operations may prompt questions, the
group dedicated to getting to know its stakeholders, to informing them, to understanding what they want, to building open
and constructive dialogue. The group also reports publicly on developments in its programs and commitments through
objective, controlled data.
Sustainable development is everyone's business
All of the company's businesses and departments are concerned with sustainable development. To live it on a day-to-day
basis, everyone in the organization is put in a position to understand the challenges and to propose areas for improvement.
A sustainable development policy...
AREVA has made sustainable development the keystone of its industrial strategy with the ambition of achieving growth that
is profitable, socially responsible and respectful of the environment.
Aware of the group's responsibilities, AREVA has concretised its sustainable development policy towards its shareholders,
customers, employees and partners around 10 commitments.
... structured around 10 commitments.
These commitments materialize our contribution to each of the pillars of our approach: respect for the environment,
economic development, and social and societal expectations.
Operating in a responsible and ethical manner
Manage our operations responsibly in accordance with the group's values, assess and truthfully
report on our performance to shareholders and all stakeholders.
Implement an international e-learning program to raise ethics awareness among group employees
Participate proactively in discussion groups - led by the "Business Leaders Initiative on Human Rights" - on the integration
within companies of human rights issues
Integrate respect for human rights into the group's decision-making processes.
Some carried out actions
A charter supported and implemented by all
AREVA adopted a Values Charter, after collective deliberations by management and upon recommendation of the Science
and Ethics Committee. Translated into 11 languages, the Charter defines the group's values through action principles and
rules of conduct.
To support this Charter, the group has deployed training programs, such as:
seminars on ethics and values awareness aiming at group managers
an e-learning module, based on role-play, to make employees aware of the conduct to be adopted.
Each year, group executives commit by signing a letter of compliance with the Values Charter and by reporting on actions
Strengthening the promotion of human rights
In its preamble, the AREVA Values Charter refers explicitly to the need to respect and promote human rights. The group has
increased its involvement by:
integrating sustainable development commitments into the supply chain: suppliers make a commitment by signing a
promoting social diversity: AREVA seeks to integrate this element into its management system, as well as within its
continuous improvement tools and processes.
335 group managers had followed ethics training by the end of 2006
Innovest, a non-financial rating agency, evaluated the group's social and environmental performance and practices. In
2006, Innovest gave the group an A rating on a scale from A to D.
Consult the Innovest ratings for 2005 and 2006
Strengthening the sense of belonging around the group's values
A founding governance principle involves sharing the group's vision and values with the largest possible number of
Among the means used, AREVA University offers the "Sustainable Generation" program, which mobilizes managers to
implement practical projects related to sustainable development issues (balancing private/professional life, sharing
knowledge, reducing CO2 emissions, etc.).
Widely institute the continuous improvement initiative
Implement a continuous improvement initiative based on practices shared throughout the group.
Adapt the AREVA Way model to take into account additional requirements arising from the group's policies
Expand the establishment of certified and integrated management systems: environment, quality, occupational safety
Strengthen the detection and collection of best practices within the group
Audit the self-assessment process and make results verifiable
Deploy the sustainable development awareness model
Launch Sustainable Generation groups in North America and Latin America.
Some carried out actions
A constant search for performance and continuous improvement
In 2006, the deployment of the continuous progress process was extended to all of the group's entities.
Tools were implemented to measure the performance of entities and encourage progress for everyone. Strategic objective
charts that factor in the results of these self-assessments were developed as part of the strategic action plan process. They
were then broken down into operational objectives and performance improvement plans that are written into the budget.
Sharing experience and best practices
In 2005, a program to identify best ideas and practices was launched. In 2006, 40 case studies were selected and
disseminated through internal communication tools, notably the group intranet.
These "comparative assessments", under which 2 entities submit the results of their self-assessments to each other, were
also encouraged. At the end of 2006, 17% of the group's employees had carried out this type of evaluation.
Our efforts to promote sustainable development
Two internal events were organized to involve employees in the initiative:
the "AREVA Sustainable Development Awards", a competition that rewards a project based on the 3 pillars of economy,
environment and social progress
the AREVA Way Forum that gives managers an opportunity to exchange ideas about the group's sustainable development
In 2006, the group consolidated and accentuated the progress achieved in 2005. The proportion of practices that were not
applied or were still in the launch stage decreased by 10%.
In 2006, 9 integrated certifications (quality, environment, occupational safety) were attributed.
Self-assessment of corporate departments
The involvement of corporate departments in the AREVA Way process is intended to strengthen the departments' cross-
cutting activities along with those of the operating units. The main areas for assessment of a corporate department are:
the goals and clarity of policies
their alignment with new demands from stakeholders
the quality of processes and tools made available by the organization
the leadership provided for the functional network.
Planning ahead to sustain solid financial performance and growth
Ensure the group's sustainability through long-term profitable growth.
Pursue the objectives set for 2011:
capture one third of the world market for nuclear energy
achieve 5 billion euros in electricity transmission and distribution sales revenues
achieve double-digit operating margin
develop a significant position in the field of renewable energies.
Perform audits of selected suppliers to ensure compliance with the Sustainable Development Declaration for Suppliers.
Some carried out actions
Strong growth in net income
AREVA's ability to take advantage of market opportunities was confirmed in 2006, notably through:
an order backlog of 25.6 billion euros at the end of 2006, equal to 2.5 years of sales revenues
growth in sales revenues of 7.3%
consolidated net income of 649 million euros, up almost 44% compared with 2005
a positive operating income of 407 million euros compared with 551 million euros in 2005.
Investing to meet our customers' needs
The current climate provides a number of growth drivers for AREVA:
the nuclear revival
the rejuvenation of resources for power generation and electricity transmission and distribution
the development of renewable energies
rising demand in developing countries.
To prepare for growth in its markets, AREVA has pursued a capital expenditure program over the past several years: in
2006, it reached 1.25 billion euros, three times the amount invested in 2005.
Leveraging factors that create value
Financial performance is the reflection of several factors:
the performance of the group's own resources and processes: employees, production and manufacturing, management
and reporting systems
flows that depend on external stakeholders: customers, suppliers, administrations, financial markets, etc.
These factors are actively managed, measured and continuously improved.
At the end of 2006, 1,569 of the group's suppliers, representing 42% of the purchasing volume, had signed the "Sustainable
Development Declaration for Suppliers".
At the end of 2006, AREVA had a strong balance sheet with a net cash position of 251 million euros
From 2007 to 2009, the group's 7 largest customers will invest 45% more than during the 2004-2006 period.
AREVA Way, a progress driver
When the Transmission & Distribution division joined AREVA in early 2004, a 3-year profitability optimization plan was set
up with the goal of reducing costs by 450 million euros over 3 years. This program also encourages everyone to share their
successes and their experiences. The most successful initiatives are recognized internally.
Energy from expertise
Develop and harness best-in-breed technologies to anticipate customer needs and increase our
cost-competitiveness while complying with nuclear safety, occupational safety and environmental
Devise an eco-design plan for nuclear fuel based on life cycle analysis and R&D projects
Pursue and reinforce our actions in the field of renewable energies.
Some carried out actions
Development of renewable energies
Since 2004, AREVA has been reflecting on the development of solutions for electricity production through non CO2 emitting
In 2006, the group created the Renewable Energies business unit, which focuses on 3 main themes:
biomass: the group has designed and installed turnkey biomass plants in Brazil and India
fuel cells: AREVA intends to develop this clean, silent, highly energy-efficient technology in the safety and public transport
Widely instituting the eco-design initiative
Within the group's Transmission & Distribution operations, core activities focus on:
limiting the use of hazardous substances
defining and formalizing end-of-life and waste recycling procedures
cutting back on of SF6 emissions - sulfur hexafluoride, 1 of the 6 greenhouse gases.
Since early 2006, several pilot actions have been launched:
the Engineering business unit has applied the eco-design methodology to the COMURHEX plant modernization project
following the revision of the uranium life cycle according to ISO 14040 standards, a nuclear fuel eco-design plan was
launched in 2006.
Research and development programs
Thanks to its efforts in this area, AREVA targets:
the safety and reliability of its facilities
greater energy efficiency
final waste minimization
natural resources conservation
future generations of nuclear systems.
To achieve this, the group is focusing on 7 key areas:
stepped-up efforts in uranium exploration
acquisition of ultracentrifuge technology
improvement of fuel performance levels
EPR licensing in different countries
studies for a Generation III treatment and recycling plant
ultra-high voltage transmission technologies
solutions for smart power grids.
669 million euros, or 62% of sales revenue: the investment made by the group in research and development in 2006.
Offer innovative products, systems and services for our customers
Listen to our customers, anticipate their needs, support their growth, and increase and measure
Revitalize the listening process and reaffirm our bias towards the customer
Define and implement the action plan resulting from the AREVA T&D customer survey
Continue to roll out innovative products, systems and services.
Some carried out actions
Reinforce and expand customer receptiveness
Since 2003, AREVA NP has conducted more than 300 face-to-face interviews with 26 electric utilities. This has enabled
AREVA to define methods and tools to listen to our customers. In 2005, this new approach was used with customers in the
nuclear business. During 2006, the T&D division conducted more than 400 interviews that will serve as a basis for action
plans in 2007. These various surveys show that AREVA is perceived by its customers as a reliable partner and industry
Meet customer requirements even better
In terms of marketing innovation, customer satisfaction surveys are a valuable source of information. The group intends to
put these lessons to good use to better anticipate market trends and devise innovative business proposals. Two tools have
a training module designed to promote bias towards the customer. By late 2006 it had been followed by 200 of the group's
the Energy Business magazine, which enables us to share our view of markets and energy with our customers and also
informs them of the group's initiatives.
19 projets to optimize customer receptiveness have been developed following the series of interviews carried out by the
group's marketing teams.
KAMs - Key Account Managers - is a favored AREVA/customer interface. It facilitates internal synergies, reinforces the
consistency of their actions and increases their ability to pool customer information.
The sharing of best practices is not limited to marketing. It also applies to customer relations and customer satisfaction.
COMMITMENT TO EMPLOYEES
A strong commitment to the development and diversity of talent
Promote our employees' professional development and provide good working conditions.
Prepare and implement action plans as indicated by the results of employee opinion polls
Formalize the group's commitments for hiring disabled people
Implement the diversity indicator scorecard
Obtain OHSAS 18001 certification for all sites with significant safety aspects
Achieve an average work-related accident frequency rate of less than 3 and an average severity rate of less than 0.15 by
Some carried out actions
Promoting internal dynamics
The group prepared an internal opinion survey based on its sustainable development commitments. Response rates
ranged from 70 to 90% depending on the subsidiary. The results were shared and followed up by the implementation of
Rules for the entire group were implemented to encourage performance and the development of talent. Most of these
actions were tracked. For example, 70% of all employees had an individual evaluation interview in 2006 and, in the same
period, the professional development prospects of 80% of all engineers and managers were reviewed, versus 40% in 2005.
In terms of skills development, an agreement on training throughout employees' careers was signed with the trade unions
in France. In particular, the agreement includes the commitment to offer each employee 30 hours of training in 2008.
Finally, to limit the social consequences of industrial reorganizations, the group offers mobility and training to each employee
involved. As a result, 97% of the employees at the sites in the United Kingdom and 92% of the employees at the Saint-Ouen
plant in France were able to find a new job in the group or elsewhere.
Becoming a leading employer
A dynamic program of communications and relations with schools and universities was launched and has generated
partnership agreements in Europe, the United States and Asia (particularly in China and India).
According to the ranking in the "2006 Universum" study prepared by the 10 leading schools in France, AREVA ranks 14th
among preferred employers and 6th among ideal employers for engineers.
Pursuing programs that foster diversity
In 2005, AREVA's European Works Committee began taking stock of best practices in hiring disabled people and equality
between men and women.
With regard to the hiring of disabled people:
programs are in place in the group to raise the awareness of management and all employees
the group is also working through its procurement practices and economic development programs: aid to the protected
sector and the creation of businesses by and/or for the disabled.
With regard to equality between men and women:
the European Metallurgy Federation and representatives of the European Works Committee signed a framework
agreement in November 2006 that covers, among other points, equality between men and women. This applies to hiring,
training, promotion and remuneration practices
AREVA's goal is for 50% of new hires in all fields to be women by 2010
the group has created day care centers in several establishments to enable its employees to harmonize their work with
their private lives.
Occupational safety: zero accident objective
AREVA has fixed a frequency rate objective of 3 and a severity rate objective of 0.15 for 2010. To achieve this, the group's
safety policy priorities include:
greater involvement of management in service and subcontracting activities
establishment of a safety management system (OHSAS 18001) for the sites and activities in which there are significant
work-related safety issues.
In 2006, AREVA hired 8,600 new employees
No group employees or subcontractor personnel were exposed to a dose greater than 20 mSv (unit of measure of
radioactivity) in 2006, compared to 31 people in 2004 and 22 in 2005.
The Safety Guide, a tool to improve occupational safety
Published by the Safety Committee in early 2006 for all operations managers, this guide:
reviews fundamental safety management principles
establishes basic rules applicable to key risk situations.
Sharing the expertise of senior staff
This is the challenge being met by the Knowledge Brokering Bulletin Project, launched by a team from Erlangen in
Germany. The project won the 2005 AREVA Sustainable Development Awards. The idea is to share the experience of
Whenever a topic can give rise to a knowledge transfer, it is reviewed by a multidisciplinary network. The key stakeholders
are consulted to prepare a user-friendly document. Thanks to this in-depth dialogue between experienced engineers and
their young co-workers, 8 bulletins have already been published.
RISK MANAGEMENT AND PREVENTION
Understand human factors better to improve risk prevention and management
Establish and maintain the highest level of nuclear and occupational safety in all of the group's
operations to preserve public and worker health and protect the environment.
Test the application of additional indicators of safety performance
Deploy event analysis training that incorporates "human factors"
Strengthen knowledge of safety regulations in countries in which AREVA does business.
Some carried out actions
High level of safety and transparency
The management and prevention of technological risks is a top priority for AREVA and is part of the cultural heritage of the
group's subsidiaries. This was reaffirmed in 2005 with the publication of the Nuclear Safety Charter, which is helping to
standardize practices and pool knowledge.
The group is also solidly committed to transparency. AREVA publishes its inspection reports, describing the status of safety
in its nuclear facilities, carried out by in-house inspectors and independent inspectors from national safety authorities.
The 2006 edition presents a generally satisfactory situation, although 3 performance improvement goals were identified in
the fields of:
safety culture awareness
in-depth events analysis.
Methodical analysis of safety aspects
Maintaining the group's safety culture is essential to improve performance. Each safety incident is subjected to in-depth
technical analysis. In the past few years, human factors were responsible for 2 out of 3 incidents. To remedy this situation,
training in the analysis of events and "near events" was deployed in 2007.
In addition, the group carries out prevention actions to identify and assess risks:
hazard studies are regularly conducted and updated at all nuclear sites and environmentally-regulated facilities
at the end of 2006, 87% of all other sites with significant environmental aspects had organized simplified environmental
risk assessments (SRA). The sites are therefore able to assess the relevance and reliability of their prevention and
AREVA includes health aspects in its risk and impact assessments. By the end of 2006, 80% of all AREVA NC sites had
assessed their health hazards. This activity is currently being deployed throughout AREVA NP and AREVA T&D (20% of all
The INES scale
The International Nuclear Event Scale has been used internationally since 1991. It was designed to facilitate media and
public perceptions of the relative importance of incidents and accidents at nuclear facilities and during the shipment of
In 2006, 86 incidents were reported to the French safety authority: 75 at level 0 ("deviation"), 10 at level 1 ("anomaly"),
and 1 at level 2 ("incident"). The level 2 incident resulted from non-compliance with an operational instruction. An action plan
was implemented to heighten team awareness on the subject.
The apprenticeship in human factors
To get a better grip on the human factor in risk prevention, the La Hague plant set up a program of seminars in 2005 for
managers. Operators participated in training sessions, led by management staff, illustrated by real case studies. In 5 years,
this program has trained 1,500 line personnel, facility operators and radiation protection personnel.
Minimizing the environmental footprint through risk prevention
Limit our environmental impacts by reducing our consumption of natural resources, controlling our
releases and optimizing our waste management.
Continue the establishment of environmental management systems
Reduce our environmental footprint by concentrating efforts on major contributors
Examine the soil management component in more detail
Continue efforts to limit greenhouse gas emissions.
Some carried out actions
Controlled environmental impacts
In 2006, the great majority of AREVA sites had received ISO 14001 certification or were in the process of doing so. In
coming years, environmental certification initiatives will be expanded to contracting operations, the nuclear engineering
business and major construction sites.
In addition, the Green Way guidelines were deployed group-wide. They are designed to harmonize assessment systems
and environmental management practices. In 2007, a review process identified divergences from these management criteria
and corrective measures were taken. Priority will be given to SEA (significant environmental aspect) sites.
Improved environmental performance
In terms of the environmental footprint, the 3-year goals set in 2004 were exceeded in 2006 in every area except energy
consumption, which dropped only 13% against the initial target of 15%.
Substantial reductions were recorded, notably:
20% in water consumption: Jeumont achieved a 42% decrease thanks to a leak reduction campaign while Aix-les-Bains
achieved 67% after the technology was changed on the cooling units
10% in paper consumption: the average group employee used 27.3 kg of paper, a drop of 5.2 kg compared to 2004 for
group-wide savings of 340 metric tons
20% in greenhouse gas emissions.
The group also strives to recycle conventional waste:
40% of all hazardous waste was recycled in 2006 (compared with 32% in 2004)
59% of all non-hazardous waste was recycled in 2006 (compared with 44% in 2004).
Keeping radiological impacts low
A strategy to harmonize measurements and conduct continuous research on ways to reduce radiological impacts was
The radiological impact around the La Hague plant was brought down to 0.01 mSv, far below the regulatory limit of 1 mSv.
These measures were extended to AREVA's main nuclear sites, taking local specificities into account. The results of these
measures are shared with the local information commissions.
Comprehensive radioactive waste management
For more comprehensive and reliable management of waste products, a reporting system was set up that factors in the
status of the facilities in operation or being dismantled and the different waste management methods.
In addition, investments have been made to improve radioactive waste storage and packaging at several sites.
77% of SEA industrial sites have received ISO 14001 certification.
COMHUREX Malvési: 29 million euros invested in environmental protection
The Malvési site handles the first step of the uranium ore conversion process. In early 2006, unusually heavy rainfall forced
the plant to suspend operations for 2 months and to review its water cycle management practices. Solutions implemented
included the creation of new ponds and a water treatment station.
DIALOGUE AND CONSENSUS BUILDING
Dialogue, a source of performance improvement
Establish stakeholder relationships based on trust.
Report on the information exchange from the Stakeholders Session, improve the process and expand the initiative to other
Continue the practice of ratings
Continue to implement stakeholder mapping based on best dialogue practices.
Some carried out actions
Responding to local stakeholder expectations more effectively
In order to promote dialogue with its stakeholders, AREVA has been mapping their expectations since 2003. This approach
consists of identifying, through interviews conducted by a third party, the main challenges (economic, environmental, social
and societal) existing between the stakeholders and the production site in question.
This method allows sites to compare their own perceptions with the actual expectations of their stakeholders and to develop
action plans that respond to these expectations.
By the end of 2006, mapping had been deployed on 20 sites, beginning with major nuclear entities and sites regulated under
Seveso laws in France, Germany and the United Kingdom. At that stage, more than 200 stakeholders had been interviewed.
The expansion of this process to new sites is helping to strengthen local dialogue activities.
Continuing external consensus building
Every year, the group undertakes an external consensus building program - Stakeholders Sessions - under the aegis of
Comité 21 with a panel of stakeholders made up of around 15 organizations representative of the following fields:
economics, trade unions, associations (NGOs involved in environmental protection, North-South development, human
rights, solidarity) and of French and international government institutions.
The summaries, drafted by Comité 21, are available online through the group's intranets and externally at www.areva.com.
In 2006, the group strengthened dialogue with stakeholders in Niger, particularly through the creation of a steering
committee. Presided over by the prefect of the Arlit and consisting of local elected representatives, representatives of civil
society and the administrations concerned, it was set up to determine priority areas for action and distribute projects among
the townships. Project oversight is provided by a technical committee of prefectural supervisors and mining company
A local information commission completes the communications and dialogue approach initiated by the group. Its mission is
to debate any subjects related to the impact of mining operations and local economic development.
The group's dialogue approach recognized by the rating agencies
The development since 2003 of initiatives to structure AREVA's relationships with external stakeholders was identified as a
strong point by Innovest, a non-financial rating agency.
AREVA and public debate
In addition to 2 public debates organized in France (1 on waste and the other on plans to build an Evolutionary Pressurized
Reactor (EPR) at Flamanville), AREVA contributed to the "Energy Review", a publication launched in 2006 by the British
The group has demonstrated that nuclear power, used in combination with renewable energies and better energy efficiency,
can provide a solution to the United Kingdom's energy supply and environmental challenges.
A local answer to economic and societal challenges
Participate in the economic and social development of the communities in which the group
Pursue humanitarian aid programs with greater employee involvement
Increase the internationalization of projects
Build public awareness of activities carried out by the AREVA Foundation.
Some carried out actions
Supporting the economies of our communities
AREVA works with local and national partners to promote local development and the diversification of the economic
In 2006, aid for local economic development around the T&D division's sites focused on integrating the disabled and youths
from "sensitive" neighborhoods.
In the Meuse and Haute-Marne departments of France, where the feasibility of a deep geological waste repository is being
studied and the Bure underground research laboratory has been set up, 150 jobs have been created and training and
business creation initiatives have been implemented.
Pursuing humanitarian aid programs
Since 2002, the Committee for patronage and sponsorships has selected projects submitted to the group, with preference
given to the fields of health, education and the environment in Southern Hemisphere countries.
The AREVA Foundation, created in 2007, works in the fields of knowledge sharing, North/South development, access to
energy and the fight against global warming.
Getting involved in the fight against AIDS
AREVA has been actively involved in the fight against AIDS for several years.
the group has been a member of the Global Business Coalition on HIV/AIDS since 2004
it also belongs to "Sida-entreprises" (AIDS companies)
Anne Lauvergeon, Chief Executive Officer of AREVA, attended the European summit of business leaders on the fight
against AIDS in October 2006
the group is actively involved in World AIDS Day.
In countries in which it is based, AREVA takes action in the field in association with NGOs committed to the fight against
AIDS. Since 2006, the group has conducted a series of assessment and prevention programs in Niger, where a partnership
agreement was signed with the government of Niger and Esther, a public interest group. AREVA is also active in China, in
India, and among its employees in France.
Consignity: the last kilometer
As part of its policy to support the economic development of regional employment pools, the group has created a
development capital company, AREVADELFI, which supports around 10 local projects each year.
The projects supported include Consignity, which has developed an innovative logistics solution: secure package centers
allow users to drop off and pick up packages weighing less than 30 kg. This system eliminates time constraints and avoids
the need for delivery runs during rush hours, helping to reduce both transportation costs and pollution.
Funding for higher education scholarships in Niger
In December 2006, a 5-year agreement to grant scholarships for excellence to Nigerien students was signed in Niamey,
between AREVA CEO Anne Lauvergeon, the Nigerien Minister of Secondary and Higher Education, Research and
Technology, and the Nigerien Minister of Mining and Energy.
The scholarships will go to engineering students and senior technicians in the fields of mining, geology, ore processing, the
environment and civil engineering. Higher technical education is a strong driver of economic development in Niger.
Ever since its creation in 2001, AREVA has opted for a communications strategy which
highlights its solutions for carbon-free energy production and reliable electricity transmission and
distribution. The group, world leader in its businesses, made sustainable development the
keystone of its industrial strategy: this is the AREVA Way.
Today, the brand AREVA is a point of reference in the energy sector. To anchor and support
AREVA's growth, the group's communications strategy has four major goals: to be known and recognized, to be
understood, to encourage dialogue, and to foster cohesion.
Senior Vice President, Communications - Spokesman of the AREVA group
Communications committed to awareness, recognition and image
AREVA operates in a competitive and changing world populated by other well-known brands. Communications are vital
to standing out. The group thus benefits from a strong identity - the key to performance and quality - meant to create
value. Advertising campaigns and sponsorships have enabled AREVA to develop its awareness and credibility. The
brand has quickly come to exist around a modern, unifying name and a unique identity anchored in a sustainable
Communications committed to pedagogy
By the very nature of its operations, the culture of the AREVA group is dominated by science and technology. Its
communications are based on rational thinking founded on tangible evidence. From the beginning, the brand has sought
to clearly introduce its businesses using detailed graphs, industrial diagrams and illustrations with a definite focus on
For example, AREVA's TV ad « Energy Experts », was designed as an educational tool that illustrates and summarizes
each stage of the group's industrial cycle. Accessible from the website, the dedicated on-line module provides a more
detailed explanation of the group's operations, through images.
Communications committed to dialogue
The energy sector and more specifically nuclear energy, is the subject of major continuous debate. The AREVA group has
always sought to take part in this debate and has even encouraged the dialogue around its operations. Using a structured
and transparent approach, AREVA has facilitated the dialogue with experts, civil society players and all the involved
The interactivity of the group's website is a revealing example of its openness: AREVA designed it as a dialogue corner to
remain open to the publics' questions and provide them with its answers.
Communications committed to internal cohesion
Combining a wide range of complementary skills and with more than 61,000 employees speaking some 20 languages,
AREVA is a group rich in diversity. AREVA's communications have always promoted cohesion and have sought to build a
common culture for all employees, encouraging synergies and optimizing the group's performance. This spirit is echoed in
the AREVA's human resources policy, which is open to all talent.
In addition, AREVA's participation in the America's Cup with the AREVA Challenge shows the group's attachment to team
spirit and to the uniting of talent and expertise.
The AREVA brand sponsors operations that promote teamwork, that strive for continuous
improvement and that possess an international dimension, all of which characterize the
group. World leader in providing CO2-free energy solutions, AREVA only attaches its name
to sports based on technologies that do not contribute to global warming.
The sponsorship actions financed by AREVA are consistent with its business interests and
company culture, and the brand and image of the group derive benefits from the
associations created as a result of these actions.
AREVA was thus the main sponsor for the French yacht participating in the 2003 and 2007 America’s Cup and has now
become a partner of the French Match Racing Team and the French Sailing Federation and will remain so through 2011.
AREVA, a new energy in the race
AREVA is the partner to the French team racing in the 32nd America's Cup. As such, the group wants to embody a new
energy in an international competition that mirrors its values and brings people together.
AREVA and the America's Cup: only the best compete
Like the teams racing in the America's Cup, AREVA is a key player in a very high-level competition in its industrial sector. To
anchor its position as a leader in the energy market, precision, reliability and quality are foremost requirements for AREVA.
They are also imperatives for achieving maximum performance for the sportsmen taking part in the America's Cup.
Merging talents to meet the challenge
At AREVA, diverse backgrounds, synergistic skills and team spirit are vital to our success. The group's progress is built on
the motivation and unity of our employees around a shared objective. This conjunction of talents is just as important for
meeting a sports challenge: AREVA Challenge is made of men and women of different nationalities, all of whom are experts
in their field, with each one bringing added value and motivation to the building of a unique saga.
The demand for continuous innovation
For AREVA, remaining on the cutting edge of technology is crucial, just as it is for AREVA Challenge. The same continuous
improvement dynamics apply to our associates and to the racing crew, as both seek out and develop innovative solutions for
ever more effective responses to complexity and change in their environment. By working synergistically on the
technological aspects of the sports program, AREVA is more than a sponsor, it's a genuine partner.
AREVA's involvement with the French challenger is part of an ongoing process rich in meaning for the group, because it is
consistent with its values and expertise.
PATRONAGE & PARTNERSHIPS
The actions of the AREVA Foundation are focused on solidarity projects, development aid, and
programs to make energy available to all while preserving the planet for future generations.
Although independent from the actions of the AREVA Foundation, cultural patronage and emergency
aid are both an integral part of the Group's patronage program:
works of art are purchased and donated to the Guimet Museum of Asian Art, and funding is set
aside for cultural exchange programs;
emergency funding is provided for victims of natural catastrophes, etc.
All these actions point to AREVA's active involvement in the life of the community.
In emergency situations, AREVA provides resources and immediate response to victims of natural
disasters in countries in which the group operates.
05/19/2008 AREVA mobilizes support to help earthquake victims in China
12/04/2007 Cyclone in Bangladesh: AREVA takes action
05/29/2006 AREVA supports the victims of the May 2006 earthquake
Earthquake in Pakistan: AREVA supports the International Federation of Red Cross and Red Crescent
07/22/2005 Famine in Niger: AREVA takes action
01/10/2005 Asian Tsunami: AREVA supports CARE International
AREVA creates its Foundation
The patronage policy managed by AREVA since 2003 results in concrete achievements reflecting the company's desire to
communicate with its stakeholders, both in France and abroad.
Today AREVA wants to further its commitment by creating its Foundation. After consulting with employees, the following
central themes have been selected for the Foundation:
North / South development
energy and Climate Change
They are addressed in terms of the following topics:
education / training
energy / environment
Selected projects contribute to the Group's development
in the countries where it has operations.
List of patronage projects led by AREVA
The Board of Trustees
It both determines the orientations of the Foundation's activities and monitors their implementation. The Board of Trustees is
made up of six members:
Gérald Arbola, President of the Foundation, AREVA Executive Director General
Jacques-Emmanuel Saulnier, Director of Communications, AREVA spokesperson
Ralf Güldner, Executive Director of AREVA NP
Maureen Kearnley, Staff representative
Anne Heinis, Qualified person
Frédéric Tona, Qualified person
The Patronage and Partnerships Committee
The Committee examines and selects projects in accordance with the Foundation's central themes. This Committee is made
up of colleagues representing the group's various entities and competencies - legal, scientific, operational, etc. It pre-selects
projects and submits them to the Foundation's Board of Trustees.
The Patronage and Partnerships / Foundation Team
This three-person team evaluates and monitors projects, acts as the interface with the associations, etc.
The Group's commitment is meaningful only insofar as it is shared by our employees which is why the company associates
them as much as possible with the Foundation's actions.
AREVA participates in the development of southern hemisphere countries. It encourages local
initiatives for sustainable growth, such as micro-financing and training support, to help contribute to
the economic, social and environmental development of these countries.
Solar-powered school in the Indian Himalayas
Social programs for the Mounana inhabitants
AREVA supports "Habitat for Humanity"
EDUCATION / TRAINING
AREVA is involved in improving the quality of life for sick and disadvantaged children. It supports
projects that give children access to education and leisure activities, allowing them to grow and
develop in a more stable environment.
AREVA, founding member of the C. Génial Foundation
Support to the São Paulo center of the Gol de Letra Foundation
Creation of a professional training center for bread-making in Niger
Creation of a public library in Arlit
Training and Integration of young people from poor areas
Donation of law books
Support to University of Saskatchewan Geology and Toxicology Departments
Sponsor for U.S. Department of Energy National Science Bowl
Educational programs at the Guimet Asian Art Museum
Gift to the Pierre Bonelli Scholarship of the Institut des Hautes Études Scientifiques
World energy expert
The group offers its customers reliable technological solutions for non CO2 emitting power
generation and electricity transmission and distribution.
The group is the world leader in nuclear power and the only company to cover all industrial
activities in this field.
AREVA's businesses help meet the 21st century's greatest challenges: making energy
available to all, protecting the planet, and acting responsibly towards future generations.
An integrated offer, 4 divisions
To answer its customers' needs, AREVA's development strategy is based on a balanced presence
in Europe, North and South America and Asia.
the group's worldwide presence A solution for
For its nuclear operations, the group offers its customers valued solutions throughout the cycle:
Front-End Division: uranium ore exploration, mining, concentration, conversion and enrichment ; nuclear fuel
design and fabrication.
Reactors & Services Division: design and construction of nuclear reactors and other non CO2 emitting power
generation system ; supply of products and services for nuclear power plant maintenance, upgrades and
Back-End Division: treatment and recycling of used fuel ; cleanup of nuclear facilities ; nuclear logistics.
In renewable business, the group offers a selection of alternative solutions for CO2-free energy generation.
Renewables: design and manufacture high output offshore turbines, design and supply turnkey bioenergy power
plants as well as small hydro-electric power plants, and offer solutions for producing hydrogen by water electrolysis
and for generating electricity with fuel cells.
The group, through its transmission and distribution (T&D) operations, provides products, systems and
services designed to transport and distribute electricity from the power plant to the final user:
T&D Division: supply of products, systems and services for electricity transmission and distribution
The Front-End Division covers all nuclear operations leading up to actual electricity
The Front-End Division's operations are organized around 4 business units*:
Mining: prospecting, mining and concentration of uranium ore.
Chemistry: conversion of uranium ore into uranium hexafluoride.
Enrichment: enrichment of uranium hexafluoride.
Fuel: nuclear fuel design and fabrication.
Throughout the fuel fabrication process, electricity-producing clients retain ownership of the fuel at all times. AREVA
supplies them with uranium concentrates, which are then processed.
* Business unit: activity or operational result center.
Supplying high-performance fuel
Increasing AREVA’s mineral resources and production
Replacing and expanding enrichment and conversion plants
Setting the standard for fuel assembly supply
Multiplying internal synergies to compete more effectively
2008 key data
Sales revenue breakdown
€3,363 M by business unit
in sales revenue
of the group's sales
Sustainable development goals
Minimize the environmental impacts of disposal of mill tailings and nitrates and reclaim mine sites after closure
Maintain a high level of safety in the use of raw materials and components
Reduce greenhouse gas emissions
Contribute to the economic and social development of communities in which we do business
Continue to monitor employee health
Apply eco-design concepts to new products and plant projects
Successfully transfer expertise related to changing technologies.
The Mining business unit prospects for mines and processes uranium ore, from which
nuclear fuel is made. It then claims mining sites once production is finished.
Among the world's top 3 producers of natural ore, the group operates in parallel a
uranium trading activity.
AREVA has also been producing gold since 1980.
The business unit intends to develop its operations in countries where it already has
existing industrial operations. This is for instance the case in Canada, where the
business unit holds shares in various projects under development, including the one of the Cigar Lake mine, and in Niger
with the mining of the significant Imouraren deposit (which will be the second largest open pit uranium mine in the world).
It is also carrying out mining exploration and development programs in several countries, including the Central African
Republic, Namibia, Niger, Mongolia, the Republic of South Africa, Jordan, Gabon and Senegal. These projects last many
years before mining operations begin.
The Mining business unit customers are mainly the leading international nuclear power plant operators with whom 5 to 10
years multi-annual contracts are signed.
The group operates uranium production sites in Canada, Niger and Kazakhstan.
As for gold mining operations, the business unit is located in Sudan and Ivory Coast.
The reclamation specialized teams are based in the Limousin region of France.
Within the AREVA group, Mining operations are handled by AREVA NC.
The Chemistry business unit brings together the group's chemistry and uranium
conversion activities. Involved at various stages of the nuclear fuel cycle, it specializes
in the transformation of uranium concentrates.
Once extracted from mines, the uranium ore must be chemically processed for
conversion into uranium hexafluoride (UF6), the intermediate product in the
manufacture of nuclear fuel for reactors. The business unit is the world leader in this
In order to maintain this position, AREVA, thanks to the COMHUREX II project, is the
first converter to renew and modernize its conversion industrial installations. The goal is to produce 15,000 metric tons of
uranium per year from 2012. This level could be increased to 21,000 metric tons depending on market demand.
In addition, AREVA is the leading European producer of gaseous fluorine, essential for conversion. The non-uranium
derivatives of the fluorine are used in the electronics and automotive industries.
The group supplies uranium hexafluoride to more than 50 customers around the world, mainly major European, Asian and
The long-term contracts signed with its customers in 2006 can extend up to 2028.
The Chemistry business unit's activities are split across 4 industrial sites in the south-east of France: at the Tricastin nuclear
site (in the Drôme and Vaucluse administrative departments), at the Malvési plant (near Narbonne in the Aude
administrative department) and at Miramas (in the Bouches-du-Rhône administrative department).
Within the AREVA group, Chemistry operations are handled by AREVA NC.
The operations of the Enrichment business unit consist of increasing the proportion
of uranium 235 found in natural uranium in order to manufacture fuel for nuclear
Natural uranium contains 0.7% of uranium 235. After the enrichment operation, it
contains from 3 to 5%.
To increase the uranium 235 content, uranium hexafluoride (obtained from the
uranium ore ) must be enriched.
Two industrial processes are used worldwide for enrichment: gaseous diffusion and centrifuge enrichment.
The Enrichment business unit, through the Georges Besse plant - operated by Eurodif Production - operates
uranium enrichment through gaseous diffusion.
With the aim to consolidate its position of leading player in the nuclear industry and prepare the future, the group is
investing in the construction of the Georges Besse II plant, which will perform enrichment using the centrifugation
technology, which will offer better guarantees in terms of energy efficiency, environmental impact and also competitiveness.
The group has about 30 electricity-producing customers, mainly located in Europe, in the United-States and in Asia, and
supplies about 100 reactors around the world. The business unit keeps on developing its enrichment services offer
particularly in Asia and the United-States.
Available worldwide enrichment capacities, expressed in million SWU, are dispatched between various operators. AREVA,
with 10.8 SWU per year, is a key actor in the enrichment market.
Georges Besse plant, located on the Tricastin nuclear site, has been in operation for almost 30 years without interruption.
The new Georges Besse II enrichment plant is being built on the same site.
Within the AREVA group, Enrichment operations are handled by AREVA NC.
The Fuel business unit designs, manufactures and sells nuclear fuel assemblies for
pressurized water reactors (PWR), boiling water reactors (BWR), and research
After enrichment, uranium hexafluoride is transformed into uranium oxide. This black
powder is then compressed into small pellets, loaded into long metallic tubes which
look like "rods". These are then assembled in order to form fuel assemblies.
A very high-technology product, nuclear fuel supplies the reactor unit in a nuclear
power station and must be regularly renewed. The business unit supplies 3 types of
standard fuel made up of enriched natural uranium
MOX fuel from a base of plutonium and uranium
URE fuel: uranium obtained from spent fuel reprocessing.
With almost 40% market share, the group is the world leader in the manufacture of fuel for PWR and BWR reactors.
Moreover, all of the sites are committed to an ISO 14001 certification process. All of the group's European sites are certified.
The Fuel business unit's customers are the world's leading power utilities, among which:
EDF: to supply assembly reloads and MOX UO2 assembly
Electrabel: for several fuel reloads at 5 of Belgium's 7 reactors
CGNPC (China Guangdong Nuclear Power Corp.): for the supply of fuel assemblies and reloads for the first 2 EPR
reactors to be sold in China
The city of Baotou (China): for assistance in the construction of PWR assemblies
Goesgen (Switzerland): for the supply of ERU assembly reloads.
The business unit mainly operates under multi-year contracts covering one or more reactors. These contracts usually
include services such as transportation, handling and technical support.
The Fuel business unit is present in France, Belgium, Germany and the United States through its 3 business lines:
"Design and Sales", based in Germany, France and the United States
"Zirconium", with 5 plants in France and 1 in Germany
"Fuel Fabrication", organized into 8 plant sites (3 in the United States and 5 in Europe).
The business unit also includes 2 other entities:
Cerca, which has plants in France, fabricates and sells fuel elements for research reactors
Federal Operations, located in the United States, provides nuclear engineering services to the U.S. Department of Energy
(DOE) and other federal government programs.
Within the AREVA group, Fuel operations are handled by AREVA NP.
REACTORS & SERVICES DIVISION
The Reactors & Services Division covers operations concerning the design and
construction of light water nuclear reactors, the PWR and the BWR, as well as
the EPRTM type reactors.
It is the world's leading supplier of equipment and services for nuclear energy. The
group also supplies maintenance, modernization and capacity improvement services
for existing reactors.
The Reactors & Services Division is made up of 7 business units*:
Plants: design, construction and startup of new reactors, and monitoring, renovation
and optimization of existing reactors.
Equipment: manufacture of key components for nuclear power plants.
Nuclear services: reactor optimization services (inspection, maintenance, improvement, etc.).
Nuclear measurement: design and construction of systems and devices designed to measure radioactivity.
Consulting and information systems: IT services (information management, integration and consulting).
AREVA TA: design, production and maintenance of nuclear reactors for the propulsion of submarines and aircraft carriers.
The business unit has also developed capabilities in the engineering of industrial installations and the design of equipment
and electronic systems for rail and air transport.
In 2006, the group supplied the majority of the world's pressurized water reactors (PWR), representing close to two thirds of
all power reactors in the world.
* Business unit: activity or operational result center.
AREVA (Euronext: CEI) is a French public multinational industrial conglomerate that is mainly known
for nuclear power; it also has interests in other energy projects. 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 German company Siemens also retains 34% of the shares of AREVA's subsidiary,
AREVA NP, in charge of building the EPR Reactor, an advanced Generation III+ nuclear reactor.
The parent company is incorporated under French law as a société anonyme (SA: public corporation) and
is also recognized as a public limited company in Britain and a corporation in American jurisdictions. 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.
According to the company official website, Areva realized €13,16 billion in sales revenue in 2008 and
€417 million in operating incomes.
AREVA is a world-leading company in nuclear energy. It is the only company with a presence in
each industrial activity linked to nuclear energy: mining, chemistry, enrichment, combustibles,
services, engineering, nuclear propulsion and reactors, treatment, recycling, stabilization, and
dismantling. AREVA also claims to offer technological solutions for CO₂-free energy; and
produces earth leakage circuit breaker technologies.
Three main subsidiaries form the core of AREVA:
AREVA NP (formerly Framatome ANP) — Nuclear Power: develops and builds nuclear
reactors; 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.
The major partners of AREVA include: Technicatome, Euriware, STMicroelectronics, Eramet,
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 reprocess spent nuclear fuel in a way that
renders the plutonium in it usable for nuclear fuel but not for nuclear weapons.
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 U.S. Secretary of Energy, was named non-executive chairman of
AREVA Inc., the U.S. subsidiary of AREVA.
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.
AREVA has its roots in Framatome, 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, in order to license Westinghouse's pressurized water reactor (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. 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. 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
The May 1981 Socialist electoral victory in France intensified calls for greater government
control of Framatome. 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
European Pressurized Reactor
The EPR Reactor was originally known as the "European Pressurized Reactor" and later as the
"Evolutionary Power Reactor" for the US market. It is now simply called the "EPR(tm) Reactor".
AREVA has been constructing Finland's fifth 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. During the political debate in 1992, the official price estimate was 2500M euros.
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. As of May 2009, this plant is also behind schedule and over-budget. Other EPRs were to
be sold to the United Kingdom and to the United States (See below).
On 13 August 2007 the French newspaper Le Parisien alleged that the 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. Le Parisien cited Philippe Delaune, deputy
to the deputy director of international affairs for the CEA atomic agency, which is the main
share-holder in AREVA. Following allegations that the deal had been related to the release of the
Bulgarian nurses, the French Socialist Party, through the spokesperson Jean-Louis Bianco,
declared that this deal was "geopolitically irresponsible". The German government also
denounced the agreement.
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.
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 1,100 MWe, but the design could be
scalable to produce different levels of power output to fit different size grids. Current plans call
for the design to be ready for licensing applications by the end of 2009.
Areva has announced that its 1,250 MWe Generation III+ boiling water reactor (BWR) design,
provisionally known as SWR-1000, will henceforth be called Kerena. The Kerena design was
developed from that of the Gundremmingen Nuclear Power Plant by Areva, with extensive
German input and using operating experience from Generation II BWRs to simplify systems
In 2007 Areva bought a 51% Stake in the windturbine manufacturer Multibrid.
Worldwi the ARE
ide, EVA group h an indust
has trial presence in 40 coun
ntries and its commercial
network reaches mor than 100 c
re countries. It employs 58, ,000 people and has consolidated sal
revenue o €10.863 billion. In 20
of b 006, Fortune Magazine r
e reported that AREVA was the "Most
Admired Global Ene
d ergy Compan ny."
AREVA has partnere with engin
ed neering cont tractors to ai in the reco
id onstruction o Iraq by
turing equipment to construct electri substatio
manufact ical ons.
In June 2
2007, AREV announce plans to ac
VA ed cquire the A
African uranium mining c company
UraMin f a final pr of about 2.5 billion U
for rice t USD. This m move further beefs up AR
r REVA's nuc clear
business, and AREVA plans to in
, ncrease prod
duction to 9 m
grams of yel
AREVA has also signed a memo understandin with Mitsubishi Heav Industries for
orandum of u ng vy
the establishment of a joint ventu for their next reactor design.
The open pit ur
e ranium mine at Arlit, Nig
ARREVA owns t mines in Arlit, Nige where it
two n er,
empploys 1,600 people; Niger is the wor rld's fifth lar
urannium produc cer. Niger uranium accounts fo
rien m or
30% of French consumption and 32% o Niger's
ports, but less than 5% of Niger's GD  The
exp f DP.
rease in the c of urani
cost ium on world markets in n
200 (more tha 46%) w enable N
06 an will Niger to triple its
revenues sourced fro AREVA. On 25 Ju 2007, the CEO of AR
om uly e REVA-Niger Dominiqu
Pin, was expelled fro Niger (although he w in Paris a the time) o charges o supporting the
om was at on of g
Tuareg R Rebellion. According t Le Canar enchaîné, this move fr
to rd rom Seyni OOumarou's
governm was mot
ment tivated by ne
concerning th uranium t
he trade agreem
ment, which w was
enewed on 1 August 200 07. Furthe ermore, Laou Kader Mahamadou, w had
resigned from his fun nctions as se
ecretary gene of the N
eral Nigerien gove ernment to ta a consul
job with AREVA-Ni iger, was ask by the N
ked Nigerien DGS to remain in Niger in
SE n nstead of flyi to
France fo an integra
or ation worksh until a "c
hop clarification of the situation" could b obtained. 21]
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.
Canada, McArthur River mine
AREVA Resources Canada Inc., based in Saskatoon, Saskatchewan, also has a 30% share in the
McArthur River uranium mine, which contributes about 20% of total global uranium mining
production. The rest of the mine is owned by Cameco Corporation (also based in Saskatoon).
Further information: 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
Further information: 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 No 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,
In February 2002, the U.S. Secretary of Energy Spencer Abraham announced the Nuclear Power
2010 Program, which included plans for two EPRs. On 15 September 2005 AREVA and
Constellation Energy of Baltimore announced a new joint venture called UniStar Nuclear that
will market the commercial EPR in the US.
In line with Areva's "strategic business plan of expanding the US commercial nuclear
infrastructure", in 2007 Areva announced plans to construct a centrifuge enrichment plant in the
United States. The proposed 3 million separative work unit (SWU) enrichment plant could
begin operation in 2013 and reach full capacity by 2017. Areva has confirmed the potential
site for this plant will be 30 kilometres west of Idaho Falls, near the US Department of Energy's
(DoE's) Idaho National Laboratory. The project is likely to cost in the region of $2 billion and
will provide uranium enrichment services to US nuclear plant operators using advanced proven
centrifuge technology developed by URENCO and the Enrichment Technology Company Ltd
(ETC), an Areva/URENCO joint venture.
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. ``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.
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
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
AREVA T&D owns following entities in Poland:
Protection relays & automation systems factory in Świebodzice.
Distribution transformers factory in Mikolow.
Systems unit in Katowice, preparing, managing and building substation as a "turn key" projects.
Sales organization located in Katowice.
Areva T&D employs 380 people in Poland.
This sectio does not cite any ref
on sources. Ple
ferences or s ease help imp
prove this ar
by adding citations to reliable sourrces. Unsour
rced materia may be ch
al hallenged andd
removed. (July 2008)
AREVA is also invol
lved in milit
tary technolo designin for examp the nucle reactor fo
ogy, ng ple ear for
the Frenc Barracuda class subm
ch a marine.
One of AAREVA's sub bsidiaries, E
unded in 199 specializes in compu engineer
91) uter ring,
and empl loys 2,100 persons on 14 different si
4 ites. AREVA also owns 11% of STM
26,25% o Eramet, an 8,45% of Safran. In M 2005 it sold all of it stakes in A
of nd f May ts Assystem, as
well as F in Octob 2005 (sol to the priv equity fi Bain Ca
FCI ber ld vate irm apital).
CERCA, a subsidiary of AREVA is also inv
, y A, volved in TR
blished in 19
with the U firm Gen
US neral Atomic
AREVA is also a cor
mber of the B
Bruegel think tank.
In Januar 2007 ARE
ry EVA was fin €53 mill
ned lion by the EEuropean Commission fo rigging EU
electricity markets th
y hrough a cart involving 11 compan
tel g nies, includin ABB, Als
ng stom, Fuji,
Hitachi JJapan, AE Po ower System Mitsubish Electric C
ms, hi Corp, Schneid Siemens, Toshiba a
VA Tech ELIN. According to the Commission, "betw
h A ween 1988 an 2004, the companies
rigged bi for procu
ids urement conttracts, fixed prices, alloc
cated project to each oth shared
markets a exchang commerc
and ged cially import and con
tant nfidential inf
formation." Siemens w was
given a f of €396 million, mor than half o the total, for its allege leadership role in the
fine re of ed p
Areva is not accused of any carte involveme other than through th acquisition of an Alsto
d el ent n he n om
unit in Ja
anuary 2004. "This subsi
. idiary was ac
cquired by th Areva gro towards the end of t
he oup the
infringemment, in Januuary 2004. T parent en
The ntities of the Areva group share a joi liability w
p int with
that subsidiary for th period afte its acquisi
he er ition." "A few month before the cartel ended
A hs d
Alstom s sold the unit involved to Areva, whic knew noth
ch hing of the c
cartel. It [Areeva] and Als
have join liability fo 53.6 millio which th must dec how to s
nt or on, hey cide split."
EU Comp petition Com
Neelie Kroes declared th "The com
s hat mmission has put an end to a
cartel wh has chea public u
hich ated anies and consumers for more than 1 years".
utility compa r 16 ]
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..
In the French economic paper "challenges" Anne Lauvergeon, chairman, declared the 10th July
2008: "Uranium is a main part of our success. '(...)'. So in China, we sold two nuclear parts, plus
35% of our uranium production. This is our integrated business model."
Eagle Rock 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.
On 2008-08-04, the AREVA group announced its proposed gas centrifuge enrichment facility
will be named the Eagle Rock Enrichment Facility (EREF).
On 18 December, 2008 Areva signed an agreement with the Nuclear Power Corporation of India
Limited (NPCIL) for the supply of 300 tonnes of uranium to India for power generation, thus
becoming the first-ever foreign supplier of Uranium to the country after the NSG waiver.
On 4 February 2009, Areva signed a MOU to supply two to six nuclear reactors to the Nuclear
Power Corporation of India Limited. The deal is thought to be worth around 12.3 billion dollars
(600 billion rupees), an all-time record for the company surpassing the 8-billion Euro (11.1
billion dollars) deal signed with China a few years earlier. They are also likely to supply fuel
for the project which is intended for the western Indian state of Maharashtra