EDF cuts 400 jobs at Hinkley Point, investment decision in months

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PARIS, April 2 (Reuters) - EDF Energy is cutting 400 jobs at Britain's Hinkley Point C nuclear reactor construction site having completed preparatory work, pending a final investment decision on the project which it now expects in coming months, the company said.

French parent EDF (Paris: FR0010242511 - news) said on Thursday preparatory work on the site had been accomplished and the next phase would be the beginning of construction work.

"We need to take a final investment decision before construction can start," an EDF spokeswoman said.

EDF said 400 jobs, mostly contractors, would go as a result, as staff numbers on the site are reduced to 250 from 650.

The project in southwest England, Britain's first new nuclear plant in decades, is expected to cost around 16 billion pounds ($25 billion) and start producing electricity in 2023.

A spokesman for EDF Energy said that, subject to a final investment decision, the power station is still expected to complete commissioning of the first unit in 2023.

"EDF Energy and the UK Government have made good progress on the work to finalise the agreements, which will enable a final investment decision in the coming months," EDF Energy said.

The company is still negotiating with British authorities about government debt guarantees for the project, along with decommissioning costs and other details.

It is also negotiating with two Chinese utilities about their role in Hinkley Point and possible future UK nuclear projects with EDF.

EDF Energy said that while it waits for a final investment decision, it will continue project planning, engineering design and commercial supply chain activities.

In October 2013, EDF estimated it would spend about 1.5 billion pounds on earthworks, drainage, roads and other preliminary work to prepare the site. (Reporting by Geert De Clercq; Editing by Andrew Callus and David Holmes)