Areva purchases major equipment supplier

23 March 2007

In a strategic move,Areva NP has completed the purchase of forged parts manufacturerSfarsteel. The acquisition follows announcements of orders for heavyforgings for new US nuclear plants and for the major components of thenew 1600 MWe nuclear power reactor at Flamanville, where Areva NP issupplying the reactor itself. Large high-quality forgings are requiredfor nuclear power plant components such as the reactor pressure vessel,and worldwide capacity to produce these components must be expanded tomeet the predicted increase in demand for nuclear power. Sfarsteel hadrevenues of €69 million in 2005, which are expected to double in 2006.The purchase price was not disclosed.