The real stake in the Areva T&D disposal

 
          
Patrick
Kron,                                                                   
     
Jean-Pascal Tricoire,
Chairman and CEO,
Alstom                                                        
President, Schneider Electric

 

The debate over the coherence and
competitiveness of the energy sector [in France and Europe] has
just been launched by the recently appointed President of EDF.
Beyond the sole domain of nuclear energy, it is an imperative to
consolidate and specialise the overall industry and in particular
the branch with the best future ahead of it, the electricity
branch. This should be done in all its facets: power generation,
transmission and distribution. This debate is essential.

The energy sector is re-inventing intself 

Energy has once again become a top strategic
and technological priority. Major changes and evolutions are
revolutionising the historic landscape:

• decarbonisation in the electricity
  generation process,
• rebirth of nuclear power,
• the development of renewable
  energies,
• the deregulation and diversification of
  electrical providers,
• the interconnection between European
  countries
• the necessity for efficiency at every
  stage in the power generation, transmission and distribution
  process.

The energy sector is now re-inventing itself.
There will be more investments in the sector in the next 25 years
than there have been since the birth of electricity at the
beginning of the 20th century. But the type of electricity we
will have will not be the same as the one we have had in the
century just gone. We will have to combine the need for
increased requirements in electrical power with social
progress and environmental protection.

Europe leads the way in "clean" energy
technology 

In this sector, and this is worthy of
particular note, Europe is the world technological leader. It is
here that the number one company in the nuclear sector can be
found as well as the biggest providers of clean power plants, the
leader in the field of carbon capture, the most important
companies in the field of renewable energies, leaders in
transmission and smart grid development, as well as
the distribution and the management of energy. Because of limited
resources in fossil fuels and of advanced awareness of
environmental issues, Europe has developed considerable
technological advances in the strategically important domain of
energy.

Alstom & Schneider Electric's bid for Areva
T&D: anticipating future needs 

The sale of Arevas T&D division,
the worlds number three in electricity transmission and
distribution is obviously at the centre of the debate. Choices
that will be made will determine and shape the future. The
project led by Alstom and Schneider Electric for Areva T&D is
100% industrial and 100% technological. It corresponds entirely
to the strategic requirements which have been laid down.

This project reinforces the coherence of the
electricity industry and the required specialisations where they
are needed for the future. Moving from solutions of the past, it
anticipates future needs, in order to create new commercial
synergies and new hubs for innovation at the heart of the
industry.

European energy industry: consolidate and
specialise 

In a context of globalisation, faced by
conglomerates often ten times their size, Alstom and Schneider
Electric propose to make with the worlds number three,
Areva T&D, two world leaders, Schneider Electric and Alstom,
thus decisively consolidating the European energy industry.

Alstom and Schneider Electric are offering
Areva T&D a coherent project based on simple principles: the
specialisation of the key segments of the electrical network,
cooperation founded on complementarities and consolidation of two
human-sized companies.

Complementarities and synergies 

Alstom and Schneider Electric cover the entire
sector while remaining specialised and competitive at the same
time. The Areva T&D Transmission activity know-how is close
to Alstoms as it is mostly project-based. The Distribution
side of Areva T&D is close to Schneider Electrics
activity focusing on products and equipment. Complementing each
other, we are determined to develop robust commercial relations
with flows of products between our two companies wherever this is
necessary.

By integrating the Transmission arm of Areva
T&D into Alstom and the Distribution arm in Schneider
Electric, we will create new synergies greater than those
currently within Areva T&Ds. Alstom already purchases
500 million of transmission equipment from its suppliers
and Schneider Electric generates more than one billion in
sales of solutions combining its distribution activities.

Strong social commitments and an ambitious R&D
policy 

We will launch large research and development
projects in the field of smart grids. These
projects will naturally be specialised in our domains of
excellence, but our teams will work together with ambitious
targets and will guarantee a absolute coherence around
international standards.

Finally, our competitiveness relies on an
organisation of a human scale with well-defined scopes of
activities. We have made clear and strong social commitments to
Areva T&D employees. Our project will guarantee them
long-term development in two companies who have a clear strategy
with a culture and knowledge similar to theirs.

Alstom, Schneider Electric and Areva T&D: a winning
project for the European energy industry 

Our project has never been changed throughout
the process. It is a winning project for the European energy
industry. It creates coherence, where up until now, key players
were acting in a dispersed manner. It creates the necessary
conditions to consolidate in the future our technological and
economical leadership. It creates two world champions, better
prepared to face the challenges of tomorrow and to offer all
employees of Areva T&D the perspectives they expect.