By Inti Landauro 
 

PARIS--French President Francois Hollande on Tuesday said he backed state-controlled Electricite de France SA's (EDF.FR) plan to build two nuclear power plants at Hinkley Point in southwestern England.

"I am in favor of this work being carried out," Mr. Hollande said in an interview with French radio station Europe1. He added a definite decision on the project's go-ahead would be made in the coming weeks.

The 18 billion-pound ($25.9 billion) project has been questioned by company officials and labor unions who consider it would threaten debt-laden EDF's financial stability.

The company's Chief Financial Officer Thomas Piquemal quit on disagreements over Hinkley Point two months ago, sparking a debate on the risks associated with the construction of two nuclear plants for a company already loaded with EUR37.4 billion net debt.

Mr. Hollande's comments underline the French government's position that the project is necessary for EDF to maintain its global position in the nuclear power industry.

EDF's Chief Executive Jean-Bernard Levy said the company would make a final decision on Hinkley Point after the board members and the company's unions separately approve the project.

The project is the centerpiece of a series of business deals between the U.K. and China announced last year, with China General Nuclear Power Corp. agreeing to take a 33.5% holding in the development.

In order to go ahead with the project, EDF has said it will raise EUR4 billion in a capital increase. The government, which owns about 85% in EDF, will also contribute with EUR3 billion.

The company also plans to sell assets worth EUR10 billion and cut dividends.

Write to Inti Landauro at inti.landauro@wsj.com

(END) Dow Jones Newswires

May 17, 2016 05:32 ET (09:32 GMT)