GDF Suez Says Areva Still Committed To Four-Reactor Project In Turkey

GDF Suez said that financially-troubled French nuclear plant builder Areva has given it assurances that it would honor a commitment signed in May 2013 to deliver four nuclear reactors in Turkey.

ArevaGDF Suez is part of a predominately Japanese consortium that signed the deal. But concerns over Areva's fate has escalated recently, as it was revealed the company lost $5.6 billion in 2014, largely due to delays in large construction projects, including the Unit 3 build at the Olkiluoto Nuclear Power Plant in Finland, where the price of the project has reached $9.6 billion, well above the original cost estimate of $3.3 billion.

Areva is expected to announce a restructuring plan on March 4. GDF Suez Chief Executive Officer Gerard Mestrallet told reporters last week that Areva was aware that this could interfere with the project in Turkey, but that the company had “given us guarantees,” that it would not.

In addition, Areva had made guarantees that it would be able to deliver 8 MW wind turbines for a large wind farm project off the coast of France, Reuters reported.

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