Areva reorganises business “to capitalise on nuclear renaissance”

French nuclear reactor producer Areva has reshuffled its operations in a move to shore up its credentials as an indivisible, integrated nuclear power provider. The company said the reorganisation of its businesses is aimed at improving synergies and customer satisfaction. Under the new structure, Areva will have no longer three, but six divisions: mining, front-end, reactors and services, back-end and transmission and distribution.

The restructuring aims to “further align the group’s organization with its strategy; better position the group to capitalize on the nuclear renaissance and the development of renewable energies; and improve the group’s commercial effectiveness by easing the creation of integrated offers required by the market,” according to Areva.

Furthermore, a consortium consisting of Alstom and Schneider is expected to buy the transmission and distribution division later this year for EUR409bn (US$6.17bn). Last week Areva signed an agreement setting out the financial and legal terms and conditions for the sale, subject to approval from the antitrust authorities.

The reorganisation follows in the wake of the company losing a multibillion euro contract to build nuclear reactors in Abu Dhabi to Korean competitors, partly because it insufficiently tailored its offer to local requirements. The loss of the award has prompted politicians and industry executives to call for better coordination among France’s nuclear and energy majors to preserve their international leadership position. According to Reuters, President Nicolas Sarkozy commissioned François Roussely, the former head of EDF, to produce an analysis on the future of the French nuclear industry. The report is due by the end of April.