Paris - France is to buy a second European pressurized reactor (EPR) as part of its plans to increase production of nuclear energy, President Nicholas Sarkozy said Thursday.

Sarkozy made the announcement at the ArcelorMittal steelworks in Creusot, where parts for the Franco-German EPR are made.

The world's first two EPR reactors are being built in Flamanville on the French coast of the English Channel and at Olkiluoto in Finland.

State-owned electricity utility EDF said Thursday it was ready to take over the operation of the new reactor in a country which already gets 77 per cent of its electricity from nuclear power.

Previously EDF said it did not see any need for new reactors because the output from nuclear plants already in use could be increased to 15 terawatt hours by 2020.

In addition, there would be extra power generated by the Flamanville plant, which is due to come on stream in 2012.

GDF Suez, another energy concern, whose merger is due to be completed shortly, is also interested in operating the EPR, which is expected to have a capacity of 1,650 megawatts and uses less fuel than other reactor types.

Suez plans to increase its overall output from 65,000 megawatts to 100,000 megawatts by 2013 and operate two EPR reactors in the United Arab Emirates.

The EPR is to be built by Areva NP, a subsidiary of the state- owned Areva concern. Germany's Siemens has a 34-per-cent stake in Areva NP.

In Creusot, Sarkozy witnessed Areva conclude an agreement with ArcelorMittal for the production of parts for the EPR.

Under the deal annual production of steel bars for the reactor's boiler and steam generators would be increased from 35,000 to 50,000 tons annually. (dpa)