Areva Signs €8bn Landmark Deal with China

French energy company Areva has signed an €8bn agreement with Chinese company China National Nuclear Corporation (CGNPC) to build two nuclear reactors in China, the largest international commercial contract ever won by the French nuclear industry.

As part of the agreement Areva and CGNPC will build two new generation european pressurised reactors (EPRs), in addition to providing all materials and services for operation.

The agreements mark "the start of a global and sustainable cooperation" with an engineering joint venture to come shortly.

The deal comes as the two countries agree to open the way to industrial cooperation in the back-end of the nuclear fuel cycle, says Areva.

Under the terms of this agreement, France and China will undertake feasibility studies related to the construction of a spent fuel reprocessing-recycling plant in China.

The deal was signed between French President Nicolas Sarkozy, Chairman of CGNPC Qian Zhimin and Areva CEO Anne Lauvergeon during the president's state visit to China last week .

The EPR, also referred to as an evolutionary power reactor, was designed and developed by Areva, French utilty Electricité de France (EDF) and German technology company Siemens AG.

By Ozge Ibrahim