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Areva aims to transform nation's power industry

(China Daily)
Updated: 2008-09-17 09:24

Areva's transmission and distribution division (Areva T&D), a business unit under French nuclear energy giant Areva, is a leading global player in the electricity transmission and distribution business. With industrial sites in more than 43 countries and a sales network covering 100 countries around the world, the company provides solutions and technologies in power transmission and distribution to customers worldwide.

China is currently the world's largest market in power transmission and distribution, and Areva T&D has built a strong presence in the country. At present the company has established 12 offices and 12 manufacturing sites in the country, with over 2,400 employees.

Last Friday, Areva and Shanghai Electric (SEC) signed a new partnership, which involves three joint ventures. The new ventures will focus on the development and manufacturing of high-voltage (HV) and ultra-high-voltage power (UHV) transformers to support power grid construction in China. Philippe Guillemot, chairman and CEO of Areva T&D, talked to China Daily reporter Wan Zhihong about this cooperation and the company's vision for China.

Q: Could you elaborate on the cooperation agreement with SEC?

A: This project is an expansion of the existing cooperation between Areva and SEC. The agreement covers three entities, including SEC and Areva's existing transformer factory in Shanghai and two new factories under construction in Wuhan and Shanghai. The new factories in Wuhan and Shanghai will particularly manufacture and test alternating current (AC) UHV transformers up to 1200 kV, direct current (DC) transmission converting transformers up to 1200 kV and smoothing reactors. Both factories will enter into production next year.

The integration of these three entities will enable us to triple our power transformer production capacity in China. This will enable our participation in HV and UHV power transformer projects as giant manufacturers of power transformers in these areas in China.

Our new transformer factories in Wuhan and Shanghai will become the benchmark of modern green factories built upon state-of-the-art technology and environmentally friendly standards.

Our joint venture with SEC is a strategic move to support China's ambition to build an advanced UHV power network throughout the country. We are investing together to expand our infrastructure in China in order to address strong local needs.

Q: Apart from increasing your manufacturing capacity in China, what work have you done in the field of research and development (R&D)?

A: We have announced the opening of an R&D center in Shanghai, which will be our flagship R&D facility in China. The center will focus on HV and UHV research projects.

The center, covering around 50,000 sq m, will involve an investment of 180 million yuan ($26.29 million) in the first phase. It is scheduled to open in 2009. We will be the only manufacturer in the industry with the equipment to test DC-valves, which is critical in HVDC power transmission.

Areva is committed to bringing advanced technologies to China to support the power industry.

Q: Since Areva acquired the T&D business from Alstom in 2004, what major successes have you achieved in China, and what are your next expansion plans?

A: At present, China accounts for 25 percent of the world power transmission and distribution market. Without success in China, you cannot be a leader in the market. In these four years we have managed to triple our order intake in China, and our goal is to triple that again in the next four years.

During the past four years we have been successful in boosting our local manufacturing and market presence in China. In the medium-voltage area, we have recently expanded cooperation with our joint venture partner Huadian in Xiamen, Fujian province. The expanded cooperation will enable us to become a stronger player in the medium voltage market. We have also created a number of new joint ventures since last year in the areas of disconnectors and key components supply for GIS (gas insulated substation).

Besides supplying to the Chinese market, we now export 25 percent of our products made in China to foreign markets, and the figure will continue to increase.

Q: Will you expand your business more through organic growth or mergers and acquisitions?

A: Globally since 2004 we have doubled the size of our business through a mix of organic growth and acquisitions. In China, we have developed partnerships with strong local companies. These win-win partnerships have paid dividends.