Speaking at the RenewableUK Offshore conference, Areva country director UK wind Julian Brown said the company was looking at sites in the northeast of England or southwest of Scotland. The company has shortlisted four locations.
The factory would be built in 2015 with a view to producing turbines by 2016. It would form part of a unit with Areva's other wind facilities in Le Havre, France, and Bremerhaven, Germany.
However, Brown warned the project was dependent on a customer confidence, which "is being dented by uncertainties with the electricity market reform".
He added: "There needs to be an environment where there is confidence for investment. For developers because the market is sound."
Brown also said the company was committed to UK suppliers. "There's a clear mandate from the UK government that there has to be an economic benefit to the UK. I endorse that."
As part of this Areva has signed a deal with Finnish gearbox manufacturer Moventas, which is owned by UK energy investment firm Clyde Blowers. He was unable to confirm whether the Moventas gearboxes would be manufactured in the UK.