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BUSINESS OVERVIEW

06

6.4 Operations

In Kazakhstan, AREVA was selected as a technology provider for the construction

of a 200-metric-ton fuel fabrication plant for Ulba-Fa, a joint venture between

Kazatomprom and CGN.

In conclusion, the streamlining of its production plants and the development of

partnerships and technology supply contracts in Asia and elsewhere, and the

deployment of a new generation of products combined with a very comprehensive

range of fuel services will enable the Fuel business to optimize its position in an

evolving market and to secure its market share by expanding its commercial

positions in all regions.

6.4.2.1.2.

Installed base

Businesses

The scope of the Installed Base Business Unit covers:

p

products and services to maintain, upgrade and extend the operating period

of reactors in service;

p

nuclear and specialized engineering services related to the operation and

maintenance of nuclear reactors;

p

products and solutions for the installation and commissioning of new reactors;

p

projects to install and/or replace heavy components, mobile components, and

large forgings and castings.

The Installed Base business’s portfolio of solutions and services aims to improve

the safety, availability and economic performance of nuclear power facilities.

Operations and highlights

Noteworthy among the key highlights of 2016 was the German platform’s significant

commercial successes with international customers, securing its operations even

as Germany phases out nuclear power. For example, several multi-year services

and engineering contracts were signed with Swiss, Spanish and Brazilian utilities.

The German platform also contributed to AREVA’s commercial successes in China.

ASIA

AREVA recorded commercial successes for different product lines, giving shape to

its localization strategy in China and enabling it to take advantage of market growth.

In South Korea, AREVA consolidated in the market for reactor coolant pump

upgrades.

NORTH AMERICA

AREVA was awarded a contract valued at several tens of millions of dollars to

manufacture and install heat exchangers in the secondary cooling system of the

Palo Verde power plant in Arizona.

Through its Steam Generator Technology joint venture (SGT), AREVA signed a

contract valued at several tens of millions of dollars for engineering studies and

on-site steam generator replacement operations at a US power plant.

The maintenance teams worked in several US power plants for long unit outages,

successfully and simultaneously performing various important repairs, particularly

during the spring and autumn operating peaks.

The cavitation peening process developed in 2014 was successfully implemented

for the first time on the vessel closure heads of the Byron and Braidwood reactors.

AREVA signed several contracts with US utilities for engineering services, in

particular contracts for strategic cybersecurity expertise. These services will enable

the group’s customers to improve the digital protection systems of their nuclear

power plants

The Installed Base Business Unit continues to adapt its structure to the market

environment in response to the US utility initiative “Deliver the Nuclear Promise”

launched at the end of 2015, which aims to enhance power plant safety and

performance and to significantly reduce costs.

FRANCE

AREVA had a large volume of operations in the services field in France, in particular

to support EDF’s Major Retrofitting Program (“

Grand Carénage”

).

AREVA signed a multi-year contract to service equipment in the primary cooling

system of EDF’s 1,300 MWe reactors, among others.

AREVA began, and continues, operations to upgrade the instrumentation and

control systems of the Paluel and Cattenom power plants. Additionally, a multi-year

contract was signed for similar work to be carried out at EDF’s 900 MWe power

plants. Henceforth, this work will be carried out by the Instrumentation and Control

Business Unit created in 2016.

In April, unfortunately, a steam generator fell in the Paluel 2 power plant during

work performed by a short-term joint venture in which AREVA is a stakeholder. It is

working closely with EDF and the French nuclear safety authority ASN to resolve

the incident and resume the steam generator replacement operations.

AREVA’s teams also provided support for investigations in progress on subjects

involving carbon segregation in certain forgings produced by Creusot Forges and

JCFC which are used in certain equipment in the French reactor fleet. In particular,

they took a number of measurements and in some cases took samples from the

sites.

Themaintenance teams also worked on long unit outages in England at the Sizewell

power plant, and in South Africa.

AREVA signed an extension to the collaboration agreement with the CEA valued

at several tens of millions of euros for its participation in the design phase of the

technology demonstration project for the Generation IV reactor known as Astrid.

Human and industrial resources

Historically, the Installed Base Business Unit’s teams are located in France, the

United States and Germany, but they are also present in China, Sweden, Spain,

Canada, Slovakia, South Africa and elsewhere. These decentralized units are staffed

with highly qualified specialists and offer personalized, localized service to their

customers to help them comply with national regulations.

In addition, the business unit has workshops in Europe and the United States for

offsite maintenance, to develop its equipment and to store its tools, as well as three

facilities dedicated to personnel training and instruction, one in France co-owned by

the EDF group and AREVA (Cetic), one in Germany, and one in the United States.

2016 AREVA

REFERENCE DOCUMENT

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