UPDATE 1-Alstom CEO sees bright nuclear future with Areva

(Adds background, chairman comments, details)

By Benjamin Mallet

BELFORT, France, June 18 (Reuters) - Alstom (ALSO.PA: Quote, Profile, Research) on Wednesday called again for a merger with nuclear reactor maker Areva (CEPFi.PA: Quote, Profile, Research), a move that would help the heavy engineering group reap the benefits of a global nuclear industry boom.

A tie-up with state-controlled Areva would benefit both groups in terms of size and capacity, Alstom Chairman Patrick Kron told reporters at an Alstom plant in eastern France.

"We have a major opportunity to create a world leader in electricity generation," Kron said, adding that to make a merger work, the companies would need a "managerial unity" or else it would form an "un-manageable" entity.

The comment was directed at Areva CEO Anne Lauvergeon, who has repeatedly opposed a merger with Alstom, saying this would endanger her company's business model that spans uranium mining and enrichment to nuclear reactors and waste recycling.

French President Nicolas Sarkozy called last year for a review of Areva's future as high oil prices help boost worlwide demand for civil nuclear power reactors.

Lauvergeon, seen as close to Sarkozy by political commentators, has been pressing hard for more funds, through a stock market listing, to finance Areva's business development.

But her ambition to keep Areva independent faces a serious challenge from Kron, who is also seen as having Sarkozy's ear.