BWXT Awarded $35 Million Contract to Develop and Fabricate Payload Module Launch Tubes for Virginia-Class Submarines
(LYNCHBURG, Virginia – December 27, 2016) – BWX Technologies, Inc. (NYSE:BWXT) announced today that its subsidiary BWXT Nuclear Operations Group, Inc. has received two competitively bid awards (development and fabrication) under a single contract for Virginia Payload Module (VPM) launch tubes. The contract was awarded by General Dynamics Electric Boat to support the Virginia-class submarine program and is worth approximately $35 million.
The VPM will comprise four large-diameter payload tubes in a new hull section to be inserted in Virginia-class submarines.
Work has already begun for development efforts and qualification of the processes required to manufacture these payload tubes. BWXT expects to complete the development by 2019.
Fabrication of a quantity of first-of-a-kind VPM payload tubes will begin in 2017 with delivery of the first tube scheduled in 2019. The fabrication portion of the contract represents 75 percent of the tube production work available at this time.
The work will be conducted at BWXT’s Mount Vernon, Ind. manufacturing facility, the same site where launch tubes are being manufactured for Columbia-class (formerly known as Ohio Replacement Program) submarines. The company is in the process of adding approximately 120 new jobs at Mount Vernon to support this and other new manufacturing activities.
“We are excited to begin Virginia Payload Module fabrication work as we have been investing in our facilities to meet the needs of Electric Boat and the U.S. Navy in preparation for such an opportunity,” said Peyton S. (Sandy) Baker, President and Chief Executive Officer of BWXT. “This opportunity also illustrates BWXT’s ability to grow organically into related areas of our heavy component manufacturing business.”
Forward Looking Statements
BWXT cautions that this release contains forward-looking statements, including statements relating to the performance, timing and value, to the extent contract value can be viewed as an indicator of future revenues, of the VPM launch tube contract. These forward-looking statements involve a number of risks and uncertainties, including, among other things, modification or termination of the contract and adverse changes in U.S. Government appropriations. If one or more of these or other risks materialize, actual results may vary materially from those expressed. For a more complete discussion of these and other risk factors, please see our annual report on Form 10-K for the year ended December 31, 2015 and subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. We caution not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and undertake no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.
About BWXT
Headquartered in Lynchburg, Va., BWX Technologies, Inc. (BWXT) is a leading supplier of nuclear components and fuel to the U.S. government; provides technical, management and site services to support governments in the operation of complex facilities and environmental remediation activities; and supplies precision manufactured components and services for the commercial nuclear power industry. BWXT has approximately 5,600 employees and significant operations in Lynchburg, Va.; Erwin, Tenn.; Mount Vernon, Ind.; Euclid, Ohio; Barberton, Ohio; and Cambridge, Ontario, as well as more than a dozen U.S. Department of Energy sites around the country. Follow us on Twitter @BWXTech and learn more atwww.bwxt.com.
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