Reports related to this article:
Project(s): View 2 related projects in PECWeb
Plant(s): View 2 related plants in PECWeb
Released May 18, 2015 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Years of heavy losses have prompted French nuclear power engineering giant AREVA S.A. (EPA:CEI) (Paris, France) to announce plans to reduce its workforce by up to 6,000 people, with most of the cuts expected in France.
The company said it has opened dialogue with a variety of labor organizations to facilitate the job cuts in the coming years. It admitted that the company's economic situation requires it to implement "immediate cost-saving measures for up to 1 billion euro ($1.1 billion) by 2017."
The company expects to shed up to 4,000 jobs in France and up to 6,000 in total when cuts from other global operations are taken into account. The company has suffered numerous financial setbacks in recent years, not least from the very costly delays associated with the rollout of its new nuclear reactor design, the European Pressurized Reactor (EPR), at projects in Finland and France.
The company said that in addition to reducing investments and improving performance in purchasing, it aims to reduce its labor costs by about 15% in France and 18% in total internationally.
"AREVA must begin immediately with its competiveness plan," said Philippe Knoche, chief executive officer of AREVA, in announcing the cuts. "Whatever may be the options chosen to implement the strategic roadmap and define the financing plan, it is urgent to take the necessary measures to adapt the costs of our business to the reality of its markets. I recognize the efforts that are being asked of employees. This is why I want all decisions to be made in close cooperation with all employees and their representatives. This consultation aims to jointly build the best solutions to maintain our expertise and industrial employment. During this transformation period, safety and security remain, now more than ever, the highest priority for everyone."
For 2014, AREVA announced record losses of 4.8 billion euros ($5.4 billion) after absorbing costs and penalties over the delays to its EPR nuclear projects.
Last summer, the first EPR project at Olkiluoto 3 in Finland ran into more significant delays, with its start-up date being pushed back to 2018--nine years later than originally planned. AREVA has had to foot a bill estimated at billions of euros for the delays. For additional information, see September 5, 2014, article - Finland's New Nuclear Project Delayed.
More recently, its EPR project in Flamanville, France, ran into further problems when it informed French nuclear safety authority ASN that flawed steel was discovered in the reactor vessel. Checks will have to be carried out at other EPR project sites in Finland and China. For additional information, see April 15, 2015, article - Flaws Reported in French Flamanville Reactor Vessel.
Flamanville was meant to be showcase for AREVA's new reactor design, but the start date was pushed back again in December to 2017, five years later than originally planned. Project developer Electricite de France (EPA:EDF) (EDF) (Paris) said that costs at the project have spiraled to 8 billion euro ($9.1 billion), up from the original price tag of 3.3 billion euro ($3.7 billion). For additional information, see December 1, 2014, article - No Start for Flamanville Nuclear Plant Until 2017.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the www.industrialinfo.com "Contact Us" page.
The company said it has opened dialogue with a variety of labor organizations to facilitate the job cuts in the coming years. It admitted that the company's economic situation requires it to implement "immediate cost-saving measures for up to 1 billion euro ($1.1 billion) by 2017."
The company expects to shed up to 4,000 jobs in France and up to 6,000 in total when cuts from other global operations are taken into account. The company has suffered numerous financial setbacks in recent years, not least from the very costly delays associated with the rollout of its new nuclear reactor design, the European Pressurized Reactor (EPR), at projects in Finland and France.
The company said that in addition to reducing investments and improving performance in purchasing, it aims to reduce its labor costs by about 15% in France and 18% in total internationally.
"AREVA must begin immediately with its competiveness plan," said Philippe Knoche, chief executive officer of AREVA, in announcing the cuts. "Whatever may be the options chosen to implement the strategic roadmap and define the financing plan, it is urgent to take the necessary measures to adapt the costs of our business to the reality of its markets. I recognize the efforts that are being asked of employees. This is why I want all decisions to be made in close cooperation with all employees and their representatives. This consultation aims to jointly build the best solutions to maintain our expertise and industrial employment. During this transformation period, safety and security remain, now more than ever, the highest priority for everyone."
For 2014, AREVA announced record losses of 4.8 billion euros ($5.4 billion) after absorbing costs and penalties over the delays to its EPR nuclear projects.
Last summer, the first EPR project at Olkiluoto 3 in Finland ran into more significant delays, with its start-up date being pushed back to 2018--nine years later than originally planned. AREVA has had to foot a bill estimated at billions of euros for the delays. For additional information, see September 5, 2014, article - Finland's New Nuclear Project Delayed.
More recently, its EPR project in Flamanville, France, ran into further problems when it informed French nuclear safety authority ASN that flawed steel was discovered in the reactor vessel. Checks will have to be carried out at other EPR project sites in Finland and China. For additional information, see April 15, 2015, article - Flaws Reported in French Flamanville Reactor Vessel.
Flamanville was meant to be showcase for AREVA's new reactor design, but the start date was pushed back again in December to 2017, five years later than originally planned. Project developer Electricite de France (EPA:EDF) (EDF) (Paris) said that costs at the project have spiraled to 8 billion euro ($9.1 billion), up from the original price tag of 3.3 billion euro ($3.7 billion). For additional information, see December 1, 2014, article - No Start for Flamanville Nuclear Plant Until 2017.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the www.industrialinfo.com "Contact Us" page.
