AFX News Limited
Areva to take 500 mln eur charge for Finnish reactor delay - report - UPDATE
12.05.06, 6:16 AM ET



(updates with more details)

PARIS (AFX) - French nuclear energy giant Areva will take a charge of 500 mln eur this year for extra costs because work on the Olkiluoto 3 reactor in Finland is 18 months behind schedule, Les Echos reported, without naming its source.

'The initial calendar was perhaps too ambitious', the business daily cited an Areva spokesman as saying.

'The difficulties met since the start of work are not surprising. It is not a bag of chips that we are constructing in Finland but a nuclear reactor, which, what's more, is the first of its kind,' the spokesman said.

'Despite the 18 months delay, construction of the Finnish EPR (European pressrised water reactor) will not take any longer than usual nuclear sites. We tend to forget, but Chooz, the last reactor completed in France, by EDF, went into service four years later than envisaged,' he told Les Echos.

Finnish energy company TVO announced yesterday that construction of the world's first third-generation nuclear reactor is now 18 months behind schedule.

'Today's estimate is that the unit will be completed at the turn of 2010-2011,' the head of the project Martin Landtman said in a statement.

The reactor, Finland's fifth, was initially due to be operational in mid-2009. Construction began in August 2005.

A consortium comprising Areva and Siemens AG (nyse: SI - news - people ) is building the 3.8 bln eur reactor.

Areva admitted in July that the problems at the Olkiluoto 3 site will have a major impact on the company's full year results.

equitynext@afxnews.com

an/an

COPYRIGHT

Copyright AFX News Limited 2006. All rights reserved.

The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.

AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited

Neither the Subscriber nor AFX News warrants the completeness or accuracy of the Service or the suitability of the Service as a trading aid and neither accepts any liability for losses howsoever incurred. The content on this site, including news, quotes, data and other information, is provided by AFX News and its third party content providers for your personal information only, and neither AFX News nor its third party content providers shall be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon.




More On This Topic
Companies: SIE | CEI | SI

Article Controls
E-mail | Comments | E-Mail Newsletters | My Yahoo! | RSS


Related Sections
Home > News & Analysis



News Headlines | More From Forbes.com | Special Reports    
Subscriptions >

Free Trial Issue of Forbes Forbes Gift Subscription
Subscribe To Newsletters Subscriber Customer Service



  
Trading Center
Brought to you by the sponsors below
 
 

CEO Book Club more >
Book Review
Robert Lenzner
Book Review
It's Value Time
Robert Lenzner
With the Dow over 12,000, value investing is back. The Little Book of Value Investing shows you how to take advantage.

Search Books

 
 
Advanced Search
 
 
New & Notable

 
    
 
    
SitemapHelpContact UsInvestment NewslettersForbes ConferencesForbes MagazinesForbes Autos
Ad Information   Forbes.com Mobile   RSS   Reprints/Permissions   Subscriber Services  
© Forbes.com LLC.™   All Rights Reserved   Privacy Statement   Terms, Conditions and Notices


Stock quotes are delayed at least 15 minutes for Nasdaq, at least 20 minutes for NYSE/AMEX. U.S. indexes are delayed at least 15 minutes with the exception of Nasdaq, Dow Jones Industrial Average and S&P 500 which are 2 minutes delayed.


Powered By
Oracle DBA by
Pythian Remote DBA