Areva, Mitsubishi to make new nuclear reactors together

French nuclear manufacturer Areva SA and Japan's Mitsubishi Heavy Industries Ltd. announced a joint venture Monday to make third-generation nuclear reactors aimed at markets in Asia, the United States and eastern Europe.

The 1,100-megawatt pressurized water reactor, called the ATMEA-1, would be developed, marketed, licensed and sold by the new Paris-based company, ATMEA.

The two companies have been working for nearly a year on the project, which has about EUR70 million (US$96 million) in startup capital, Mitsubishi President Kazuo Tsukuda told a news conference in Paris.

Areva CEO Anne Lauvergeon said the reactor will be "easily licensable" and ready for licensing in less than three years. Neither executive would give a market price for the new reactors.

The reactor will incorporate all safety features of so-called third-generation reactors, including protection against falling airplanes.