The Babcock & Wilcox Company (B&W) announced today that its affiliate, Babcock & Wilcox Investment Company, and Toshiba Corporation (TOKYO: 6502) have signed a definitive agreement to make an investment in USEC Inc. (NYSE: USU) over three phases, each of which is subject to satisfaction of specific preconditions, including regulatory approvals. The $200 million investment, shared equally between Toshiba and B&W, will strengthen the deployment of the American Centrifuge Plant and create key new business opportunities throughout the nuclear fuel cycle.
"This agreement will allow B&W to explore broader energy opportunities globally through expanded strategic relationships with Toshiba and USEC, as well as further enhance our already-strong relationship with the U.S. Department of Energy," said Brandon Bethards, President and CEO of The Babcock & Wilcox Company. "This initiative further solidifies our position as a key contributor to a successful nuclear renaissance."
B&W has a history of working with Toshiba on a number of non-nuclear energy projects. This agreement allows B&W and Toshiba to expand their relationship by creating new opportunities for both organizations in a variety of energy products and services.
B&W has been working with USEC to manufacture centrifuge components for the American Centrifuge Project since August 2007. In 2009, B&W signed a memorandum of understanding with USEC to form the American Centrifuge Manufacturing joint venture to provide integrated manufacturing and assembly of centrifuge machines, spare parts and other maintenance support for the American Centrifuge Project. Completion of the formation of the joint venture is a closing condition for the first phase investment.
About B&W
The Babcock & Wilcox Company (B&W), an operating subsidiary of McDermott International, Inc., is a leader in advanced energy technology innovation and service, primarily in nuclear and fossil power. Providing quality products and technical services to commercial and government customers, B&W is focused on issues such as energy efficiency, clean air, global market competitiveness, and safe and secure resolution for nuclear waste. B&W has locations worldwide and employs approximately 13,000 people, not including approximately 10,000 joint venture employees. The company is located on the Internet at www.babcock.com.
Forward Looking Statements
This release contains forward-looking statements, including, without limitation, statements regarding the impact of the investment on the American Centrifuge Plant, on new business opportunities throughout the nuclear fuel cycle and our relationship with the U.S. Department of Energy. These forward-looking statements are based on current management expectations and involve a number of risks and uncertainties, including, among other things, the inability to satisfy applicable investment conditions or adverse changes in the operation or financial condition of the American Centrifuge Plant. If one or more of these or other risks materialize, actual results may vary materially from those expected. B&W undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.
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B&W Contact:
Jud Simmons
The Babcock & Wilcox Company
434.522.6462
hjsimmons@babcock.com