Areva China nuclear deal faces delays

A construction delay at a nuclear power plant being built in Finland by Areva, a key supplier of nuclear technology to China, could affect the firm's ongoing negotiations for a contract in China, the Financial Times reported. Areva is in talks with China Guangdong Nuclear Power Corp to build two third-generation European pressurized water reactors in southern China. The deal, worth several billion dollars, has been touted as potentially the largest contract in the French energy firm's history. But Areva's Finnish project, a third-generation nuclear power plant, is 18 months behind schedule and US$958 million over budget. Areva denied that the delays would have any effect on the China deal, although the negotiations are taking longer than expected. In July, an anonymous source told AFP that Areva would sign a letter of intent with Chinese authorities on July 30, but a later report said the signing had been postponed.