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Bloomberg.com: Europe

Areva to Settle Finnish Project Loss With Client TVO )By Anne-Sylvaine Chassany Oct. 16 (Bloomberg) — Areva SA, the world’s largest reactor maker, is negotiating with Teollisuuden Voima Oyj, or TVO, to share losses at a reactor it is building for the Finnish utility………………………………OL3, which has been plagued by component, construction and organization problems since it started in 2005, is more than 25 percent over its 3 billion-euro ($4.1 billion) initial budget and its delivery date has been pushed back two years to mid-2011. Even that target is “challenging,” Jouni Silvennoinen, senior VP at TVO, said today in a presentation on site……………….

The company has never disclosed the exact amount of provisions for the project over the time. Areva’s reactors and services unit had a 258 million-euro operating loss in the first half on additional charges as the company tried to accelerate the work and allocated more resources than planned, it said.

The OL3 contract was the first reactor order negotiated by Areva after the nuclear power industry’s long pause.

Bloomberg.com: Europe

Tags: nuclear, antinuclear, radioactive, uranium

October 17, 2008 - Posted by Christina Macpherson | business and costs