• Change of culture needed

    The right leadership will help SA shed its culture of violence, says Mandi Smallhorne.

  • 10 tips to find bargains

    Susan Erasmus gives advice on how bargain hunters can get the most bang for their buck.

  • Inside Labour

    Labour's bitter breaches need to be seen in historical context, says Terry Bell.

See More

Areva suspends investment in sites

Dec 13 2011 10:48 AFP

Related Articles

Aveng inks 10-yr Namibia deal

Zuma loyal to French G20 goals

'New SA nuclear reactor coming'

Ending the coal addiction

SA eyes R400bn nuclear build price tag

Necsa refutes R1 trillion nuclear cost


Paris - French nuclear giant Areva said on Tuesday it is suspending building work at several sites in France, Africa and the United States, one day after forecasting a €1.6bn loss.

The investment freeze came amid mounting controversy over job losses at the majority state-owned group, with a minister denying claims from unions that a restructuring plan would see 1 200 posts cut in France next year.

Areva halted "capacity extensions" at its reprocessing plant in La Hague, in northern France, at its Melox factory in the Gard in the southwest and at two sites attached to its Tricastin power plant in the south.

Work has also stopped on extensions to the Eagle Rock enrichment plant near Idaho Falls in the United States and to uranium mines in Bakouma in the Central African Republic, Trekkopje in Namibia and Ryst Kuil in South Africa.

In total, Areva hopes to reduce its new capital investment by a third to €7.7bn between 2012 and 2016.

Later in the day, the firm was due to announce a broad restructuring aiming to save a billion euros per year from 2015. Between 1 200 and 1 500 job losses are expected in Germany, which is abandoning nuclear energy.

But the threat of job losses in France has generated controversy.

Unions representing Areva workers, which were briefed by management on Monday, claim that a freeze on new hires would see 1 200 retiring or leaving workers not replaced next year. They have demanded that the plan be dropped.

But Industry Minister Eric Besson, speaking to Europe 1 radio on Tuesday, dismissed this figure as "fantasist" and insisted the government would prevent mass redundancies in France.

On Monday, Areva had warned its 2011 operating loss may top €1.6bn after Japan's Fukushima nuclear disaster hit the value of its uranium mining assets.



Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Add your comment
Comment 0 characters remaining

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:


Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.

Top 10 richest musicians of all time

Check out the gallery to find out who they are!


Luxury living

10 of the most expensive things that will leave your jaw hanging!
Seven of the most expensive children's toys ever made
5 millionaires turned murderers
The youngest billionaires in the world and how they made it

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

How do you see your boss? He/sheis:

Previous results · Suggest a vote