It is the market to a growing demand of integration between the T and D

Who would benefit a sale to the cutting of Areva T & D

On the eve of a decision which determines the future of 31,000 employees of Areva T & D, and three firm offers are now under consideration, we, members of the Executive Committee of Areva T & D, do not understand to which might well enjoy a sale to the cutting of our division.

We are working for six years, with success in the light of the filed offers, for the relief, development and the establishment of our company as one of the three world leaders in the market for the Transmission and Distribution (T & D). In the event of a dismantling of our company, we are entitled to ask who will be the real beneficiaries of this dismantling operation

The top winners will be our competitors ABB and Siemens will benefit from the dismantling of our company. To check, simply ask for these leaders who have all relied on strong historical synergies that exist between the T and D.

The three leaders of the market of the T & D, with an integrated model, experienced a growth rate of about 18 per year on average between 2003 and 2008 and the main players specialized - including Schneider average voltage - have experienced less than 5 annual growth.

It is the market to a growing demand of integration between the T and D. A revolution begins today on "electric intelligent networks" (Smart Grids), whose goal is to improve energy efficiency and reduce CO2 emissions. The stability of power systems, the integration of intermittent renewable energy sources, etc., are transverse the T & D challenges. Leadership on these new relays for growth will be for actors capable of understanding and control of end to end the transmission and distribution, although more than actors specialized in high voltage or the average voltage.

The winners will not be clients of Areva T & D, which will have to accommodate a return back a few years, with only two major global players, ABB and Siemens, dominating the T & D market.

The winners will certainly not be 31,000 employees of Areva T & D in the world. The dismantling will be deeply destructive of value, as explained by 41 Vice-Chairmen of our company in a letter to the Chairperson of the Group: "Areva T & D is today a powerful division the crisis better than its competitors." Why dismantle successful successfully Cutting activities (HT) high voltage and medium voltage (MV), strongly embedded in our current organization, would inevitably generate a period of uncertainty and disturbances which prevent to benefit fully from the opportunities of the market in 2010-2011 and leave the place to our competitors. In addition, the cutting would lead inevitably social impacts on the transverse functions and sales force that now offers the entire range and is a single interface with customers.

We remember that our activities of average voltage are today in head-on competition with Schneider. Several major customers for which market share cumulative Areva T & D and this potential buyer now exceed 70 have already indicated us informally would that if merger they reduce the market share of the new entity to a value more in agreement with their purchasing policy. Regardless of the position that the European Commission, this would lead to a loss of market share and the risk of transfers of assets or restructuring of industrial sites.

We cannot, as members of the Executive Committee, but recall that our division high voltage, once isolated, become a player in second place in a market consolidation, could not compete to customers with the two remaining leaders, and especially having more ways to cope with the heavy investments in research and development inherent in this activity and take advantage of the technological gateways that exist between the HT and MT.

And Alstom and Schneider themselves to win something Nothing is less sure the proposed timeline is complex. Also cutting knife, including certain operational subdivisions and industrial sites, is not less than a billion of sales annual inter-company that will manage the Alstom and Schneider, future knowing that 90 of high-voltage projects (substations) integrate products of average voltage.

So the France would be the winner Each French business executive familiar with the fragility of the concept of economic patriotism when it comes to winning a grand public contract in China or India to mention that these two markets. However, if it is the economic patriotism that guide the choice of the purchaser of our business, why exclude the other scenarios

Why not consider that a future in Areva perpetuating employment and the conquest of new markets is not better to risk to promote real competitors that Siemens and ABB are on the market of transmission and distribution

Why not have sought to create, around Schneider, French champion world leader in electric solutions of end at the end of the low voltage to the voltage A solution could be found calmly, preserving the interests of all the employees both AREVA T & D to Schneider.

Why the joint venture created by Alstom and Schneider have a vocation to our company the time that the decommissioning is completed and granted blessing of Brussels Why not integrate not the assets of Schneider to create, in partnership with Alstom, once again a French champion

It also serve his country that today accept an alternative offer from a foreign player, guaranteeing the integrity of a French industrial champion, perpetuating the use and maintenance of centres of decision in France, strengthening the position of our company in the world in him head trio doing gain market share, and proposing to develop strongly and more precisely the assets of the State