AREVA, Northrop Grumman Join Forces to Create World-Class Facility in U.S. to Manufacture...

AREVA, Northrop Grumman Join Forces to Create World-Class Facility in U.S. to
Manufacture Heavy Components for American Nuclear Energy Industry

NEWPORT NEWS, Va., Oct. 23 /PRNewswire-FirstCall/ -- AREVA and Northrop
Grumman Shipbuilding, a sector of Northrop Grumman Corporation (NYSE: NOC),
two leaders in the U.S. nuclear industry, have joined forces to build a new
manufacturing and engineering facility in Newport News, Va., to supply the
growing American nuclear energy sector. The joint venture, AREVA Newport News,
LLC, with AREVA as the majority owner, will establish a world-class facility
to manufacture heavy components for the U.S. Evolutionary Power Reactor (EPR),
AREVA's Generation III+ nuclear reactor, thereby supporting the nuclear energy
resurgence, fueling domestic economic growth, and meeting the demand for
American energy security.
A photo accompanying this release is available at:
http://media.primezone.com/noc/
The 300,000 square-foot facility represents a significant investment of
more than $360 million in the U.S. commercial nuclear and manufacturing
industries and will bring more than 500 skilled hourly and salaried jobs to
the Commonwealth of Virginia. AREVA Newport News will be the first full-scale
manufacturing facility dedicated to supply heavy components, such as reactor
vessels, steam generators and pressurizers to the U.S. nuclear energy
industry. These components will supply the first new U.S. nuclear power
plants to be built in 35 years. Industry experts have viewed limited
production of heavy components positioned against rising demand as a
constraint on nuclear energy's expansion.
"AREVA Newport News is powerful evidence of the reality of the U.S.
nuclear energy resurgence and our commitment to it," said AREVA CEO Anne
Lauvergeon. "AREVA intends to build one-third of all new reactors around the
world and at least seven in the United States. AREVA Newport News is a key
step in our dual strategy to increase domestic content in the new nuclear
power plants we build and to produce in the local currency. Together with our
Chalon/St. Marcel plant in France, AREVA strengthens its capabilities to
supply the global energy renaissance."
AREVA has been manufacturing quality heavy components for the global
commercial nuclear industry for more than 30 years at its Chalon/St. Marcel
plant. Together with Northrop Grumman's experience, AREVA Newport News will
provide a secure domestic link in the supply chain for deploying the U.S. EPR
and supporting a diverse energy mix that will mean safe, clean, affordable
electricity for Americans.
"This relationship capitalizes on Northrop Grumman Shipbuilding's
century-long history of quality craftsmanship, skilled engineering and program
management expertise building large nuclear and non-nuclear ships for the U.S.
Navy," said Mike Petters, corporate vice president and president of Northrop
Grumman Shipbuilding. "Our shipbuilders embrace the opportunity to apply their
considerable skills and training to a growing U.S. energy sector, backed by
the pro-growth environment of the Commonwealth of Virginia, employing the same
dedication and commitment to domestic energy security that has been applied to
national security."
Northrop Grumman's Shipbuilding sector brings its heavy industrial
engineering and manufacturing expertise and the culture of excellence required
to build U.S. Navy nuclear ships to the venture. Along with its skilled
workforce, Northrop Grumman has existing transportation access via the James
River to deliver heavy components.
"The nuclear power industry is bringing back 'made in America'," said Tom
Christopher, CEO of AREVA Inc., the group's North American division. "In
addition to our joint venture with Northrop Grumman, we are working with
Lehigh Heavy Forge in Bethlehem, Pa., to produce qualified forgings for the
U.S. EPR, further strengthening the U.S. manufacturing sector. Each new
Generation III+ nuclear power plant in the United States will create thousands
of jobs and many more will be generated as industries gear up to supply the
materials and components."
"This agreement is the result of several years of effort by both the AREVA
and Northrop Grumman teams," said Dan Arczynski, vice president for strategy
for Northrop Grumman Shipbuilding. "The relationship that has formed between
our great companies is grounded in similar cultures of heavy manufacturing
excellence. This new venture will be good for both of our companies, the
Commonwealth of Virginia and City of Newport News, and the future of
manufacturing in America."

More About

AREVA
As the leading U.S. nuclear vendor and a key player in the electricity
transmission and distribution sector, AREVA Inc.'s 5,300 U.S. energy employees
are committed to serving the nation and paving the way for the future of the
electricity market. With 45 locations across the nation and nearly $2 billion
in energy revenues in 2007, AREVA Inc., through its subsidiaries, combines
U.S. leadership, access to worldwide expertise and a proven track record of
performance. In the United States and in more than 100 countries around the
world, AREVA is engaged in the 21st century's greatest challenges: making
energy available to all, protecting the planet, and acting responsibly toward
future generations. AREVA Inc. is headquartered in Bethesda, Maryland.
Northrop Grumman
Northrop Grumman Corporation is a global defense and technology company
whose 120,000 employees provide innovative systems, products, and solutions in
information and services, electronics, aerospace and shipbuilding to
government and commercial customers worldwide.
SOURCE AREVA; Northrop Grumman Corporation

Margaret Mitchell-Jones of Northrop Grumman, +1-202-550-8746,
M.Mitchell-Jones@ngc.com; or Jarret Adams of AREVA, +1-301-841-1695,
Jarret.Adams@areva.com