PARIS: Struggling French nuclear giant Areva said Wednesday it will create a new nuclear fuel subsidiary as it withdraws from the business of building reactors.
Areva, 87-percent owned by the French state, is restructuring after being hit by a slump in demand for nuclear power.
The group, which announced a fifth straight year of losses last year, is finalising the takeover of its reactor arm by state-backed electricity utility EDF.
To shore up Areva´s accounts, which carried a debt of more than six billion euros last year, the group announced earlier this year plans for a 5-billion-euro ($5.4 billion) capital injection in 2017, in which the French state is taking part.
Areva and its newly created nuclear fuel unit, provisionally called New Co, will jointly benefit from the cash injection, the group said.
"By means of the solutions it can provide for uranium supply, for its conversion into fuel and for nuclear fuel recycling, waste management and dismantling, New Co. will be in a good position to grow in global nuclear markets," Areva chief executive Philippe Knoche said in the statement.
Following the shakeup, the French state will hold at least 67 percent in the new company, it said.
-
Annular solar eclipse 2026: Where and how to watch ‘ring of fire’ -
Scientists discover rare form of 'magnets' that might surprise you -
Humans may have 33 senses, not 5: New study challenges long-held science -
Northern Lights: Calm conditions persist amid low space weather activity -
SpaceX pivots from Mars plans to prioritize 2027 Moon landing -
Dutch seismologist hints at 'surprise’ quake in coming days -
SpaceX cleared for NASA Crew-12 launch after Falcon 9 review -
Is dark matter real? New theory proposes it could be gravity behaving strangely