USEC Inc. (NYSE:USU) awarded a $92 million contract to Teledyne Brown Engineering Inc. (NYSE:TDY) of Huntsville, Ala., to manufacture 540 gas centrifuge service modules for USEC’s American Centrifuge uranium enrichment program.
Teledyne Brown received this follow-on order to a previously awarded $19.4 million contract for an initial complement of 36 service modules. Service modules, which are critical to the operation of the centrifuge machines, are welded, steel frame structures with pipe headers and valves, control and instrument cabling, ventilation ductwork and electrical distribution cables. The individual machine isolation valves, power controls and instrumentation package are mounted on the service modules. These service modules can accommodate up to 20 AC100 centrifuge machines and are connected in series to support cascade operations.
Teledyne Brown recently opened a new manufacturing facility in Huntsville, tripling the company’s manufacturing capabilities there, to handle this contract. It expects to add nearly 200 jobs at the new facility, which is being expanded from its original 130,000 square feet to the 206,000 square feet needed for production operations. The initial production machines have been installed, and the hiring and training of manufacturing personnel as well as process development and tooling fabrication are underway.
“Teledyne Brown was selected to produce service modules for USEC’s American Centrifuge Plant because of their experience as a top-notch supplier of nuclear hardware,” said Philip G. Sewell, USEC senior vice president, American Centrifuge and Russian HEU. “This contract is a great example of how the American Centrifuge Plant is helping rebuild America’s nuclear manufacturing base and creating a significant number of jobs around the country.”
The contract was awarded by Fluor Corporation (NYSE: FLR) acting as the agent for and on behalf of USEC. Fluor serves as the engineering, procurement and construction manager for USEC’s American Centrifuge Plant in Piketon, Ohio.
Last month, USEC announced that it has finalized the initial design for the AC100 centrifuge machine, releasing 75 percent of the drawings to strategic suppliers to begin manufacturing components. The remaining 25 percent are expected to be released by June 30. USEC expects to complete its review of the comprehensive project budget and schedule for the American Centrifuge Plant in late June and release details thereafter.
As America’s only commercial uranium enrichment facility under construction that uses U.S. centrifuge technology, the American Centrifuge Plant will play an important role in America’s energy security. Enrichment is the process by which the concentration of the fissionable uranium isotope, U-235, is increased in order to make fuel for nuclear power plants.
USEC Inc., a global energy company, is a leading supplier of enriched uranium fuel for commercial nuclear power plants.
This news release contains forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainty. For USEC, particular risks and uncertainties that could cause our actual future results to differ materially from those expressed in our forward-looking statements include, but are not limited to: the success of the demonstration and deployment of our American Centrifuge technology including our ability to meet our performance targets and schedule for the American Centrifuge Plant; the cost of the American Centrifuge Plant and our ability to secure required external financial support; changes in existing restrictions on imports of Russian enriched uranium; changes to, or termination of, our contracts with the U.S. government and changes in U.S. government priorities and the availability of government funding, including loan guarantees; the competitive environment for our products and services; and other risks and uncertainties discussed in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K/A and quarterly reports on Form 10-Q, which are available on our website www.usec.com. We do not undertake to update our forward-looking statements except as required by law.
Elizabeth Stuckle, 301-564-3399
Steven Wingfield, 301-564-3354