French construction group Areva has signed a long-term contract worth over E1 billion to provide uranium enrichment services to South Korea-based Korea Hydro and Nuclear Power.
In a statement regarding the agreement, Areva said that Korea Hydro and Nuclear Power (KHNP) is among the four largest nuclear power generation companies in the world and operates 20 nuclear reactors ensuring 40% of Korea’s electricity needs.
The deal is part of Areva’s strategy of developing stable and long-term partnerships with major utilities, reinforcing its position on the worldwide enrichment services market.
The company said that the agreement would not only allow KHNP to secure its nuclear fuel supply at a competitive price, but also secure orders for Areva’s future Georges Besse II enrichment plant, which will be located in Pierrelatte, France.
Anne Lauvergeon, CEO of Areva, commented: This major success demonstrates that Areva is a key actor in Asia.
Kim Jong Shin, president of KHNP, added: With this contract, both companies KHNP and Areva paved a new way of building a strategic partnership to be well prepared for the global nuclear renaissance.