BETHESDA, Md.--(BUSINESS WIRE)--Oct. 21, 2014--
United States Enrichment Corporation, a subsidiary of Centrus Energy
Corp. (NYSE: LEU), today returned full control of the 750-acre uranium
enrichment complex near Paducah, Ky. to the U.S. Department of Energy
(DOE). The transfer of control occurred at 7:00 a.m. CT and followed a
year-long process to prepare the plant for a return to full DOE control.
United States Enrichment Corporation had leased the Paducah Gaseous
Diffusion Plant from DOE since it was privatized by the U.S. Government
in 1998 and enriched uranium there for the global nuclear fuel market
until May 2013. DOE has responsibility for the decontamination and
decommissioning of the 60-year old complex and has contracted with Fluor
Federal Services, Inc. to begin deactivation activities at the site.
“For more than a decade, United States Enrichment Corporation employees
in Paducah operated this plant at record-high levels of productivity in
a safe and environmentally responsible manner,” said Steve Penrod, vice
president of American Centrifuge for Centrus and former general manager
at Paducah. “When enrichment ceased in 2013, this same team came
together to safely and diligently wind down operations and work closely
with DOE to effect a smooth and successful de-lease and return of full
control of the site to DOE. I want to thank them and our counterparts at
DOE for the tremendous efforts that led to this successful outcome.”
John Castellano, interim president and chief executive officer of
Centrus, added, “With the successful handover of the Paducah plant
complete, Centrus can focus on serving its utility customers, improving
its business and maintaining the American Centrifuge technology for
national security needs and future commercial deployment. We are well
positioned to deliver value to our customers and shareholders as a
smaller company with a stronger balance sheet.”
Castellano noted that the turnover of the Paducah plant to DOE will have
no effect on customers or their deliveries.
Turnover Process
Turnover activities began in May 2013 when United States Enrichment
Corporation ceased enrichment at the plant because its high cost of
operations made it uncompetitive in a depressed global nuclear fuel
market. In early 2014, the Company began the process of repackaging
inventory and moving it to other licensed storage locations. All
transfers of enriched uranium product to off-site licensed locations
were completed by April 2014. Other turnover activities and facility
preparations continued in anticipation of a fall 2014 turnover to DOE.
Legacy of Service
The Paducah Gaseous Diffusion Plant, built in the 1950’s as a government
owned and operated facility, supplied enriched uranium for national
security and energy production for 60 years. In its initial years of
operation, it was an integral part of the country’s production of
enriched uranium for national security purposes. Later in its life, it
supplied nuclear fuel to commercial nuclear reactors in the United
States and around the world to produce clean, reliable electricity. The
plant also served as the U.S. destination for low enriched uranium fuel
produced in Russia during the recently concluded Megatons to Megawatts
program, which transformed the equivalent of 20,000 Russian nuclear
warheads into fuel for commercial nuclear power plants.
Over its 60-year history, the Paducah plant helped fuel western
Kentucky’s regional economy. The plant’s management and workforce gave
generously to support community service projects, charities and schools.
The local community consistently supported the plant, as did local,
state and federal legislators, who recognized both the local and
national benefits of the plant.
Nothing about the Paducah Gaseous Diffusion Plant is small. During its
operations, it produced more than 300 million SWU, or separative work
units, a measure of nuclear fuel production, enough to fuel every U.S.
reactor for 25 years. The plant covers 750 of the 3,425 acres on the
Federal site. It is comprised of 161 buildings, including four giant
process buildings, each averaging 74 acres under roof.
About Centrus Energy Corp.
Centrus Energy Corp. is a trusted supplier of enriched uranium fuel for
a growing fleet of international and domestic commercial nuclear power
plants. Centrus is working to deploy the American Centrifuge technology
for commercial needs and to support U.S. energy and national security.
Forward-Looking Statements
This news release contains “forward-looking statements” within the
meaning of Section 21E of the Securities Exchange Act of 1934 - that is,
statements related to future events. In this context, forward-looking
statements may address our expected future business and financial
performance, and often contain words such as “expects”, “anticipates”,
“intends”, “plans”, “believes”, “will” and other words of similar
meaning. Forward-looking statements by their nature address matters that
are, to different degrees, uncertain. For Centrus Energy Corp.,
particular risks and uncertainties that could cause our actual future
results to differ materially from those expressed in our forward-looking
statements include, uncertainty regarding our ability to maintain the
listing of our common stock on the NYSE; uncertainty of our ability to
improve our operating structure, financial results and profitability
following emergence from Chapter 11; risks related to the ongoing
transition of our business, including the impact of our ceasing
enrichment at the Paducah gaseous diffusion plant and uncertainty
regarding our ability to deploy the American Centrifuge project; risks
related to the underfunding of our defined benefit pension plans and
potential actions the Pension Benefit Guaranty Corporation could pursue
in connection with ceasing enrichment at the gaseous diffusion plants or
with any demobilization or termination of the American Centrifuge
project or otherwise including the involuntary termination of the plans,
imposition of liens or requiring additional funding; the impact of
uncertainty regarding our ability to continue as a going concern on our
liquidity and prospects; and other impacts of United States Enrichment
Corporation, a subsidiary of Centrus, ceasing enrichment at the Paducah
gaseous diffusion plant and returning the plant to DOE; the continued
impact of the March 2011 earthquake and tsunami in Japan on the nuclear
industry and on our business, results of operations and prospects; the
impact and potential extended duration of the current supply/demand
imbalance in the market for low enriched uranium (“LEU”); uncertainty
concerning customer actions under current contracts and in future
contracting due to the delay and uncertainty in deployment of the
American Centrifuge technology and/or as a result of changes required
due to our cessation of enrichment at Paducah; the potential for DOE to
seek to terminate or exercise its remedies under the 2002 DOE-USEC
agreement, or to require modifications to such agreement that are
materially adverse to Centrus’ interests; changes in U.S. government
priorities and the availability of government funding or support,
including loan guarantees; risks related to our ability to manage our
liquidity without a credit facility; our dependence on deliveries of LEU
from Russia under a commercial supply agreement (the “Russian Supply
Agreement”) with a Russian government entity known as Techsnabexport
(“TENEX”) and limitations on our ability to import the Russian LEU we
buy under the Russian Supply Agreement into the United States and other
countries; risks related to actions that may be taken by the U.S.
Government, the Russian Government or other governments that could
affect our ability or the ability of TENEX to perform under the Russian
Supply Agreement, including the imposition of sanctions, restrictions or
other requirements; risks related to our ability to sell the LEU we
procure under our fixed purchase obligations under the Russian Supply
Agreement; the decrease or elimination of duties charged on imports of
foreign-produced LEU; pricing trends and demand in the uranium and
enrichment markets and their impact on our profitability; movement and
timing of customer orders; changes to, or termination of, our agreements
with the U.S. government; risks related to delays in payment for our
contract services work performed for DOE, including our ability to
resolve certified claims for payment filed by United States Enrichment
Corporation under the Contracts Dispute Act; the impact of government
regulation by DOE and the U.S. Nuclear Regulatory Commission; the
outcome of legal proceedings and other contingencies (including lawsuits
and government investigations or audits); the competitive environment
for our products and services; changes in the nuclear energy industry;
the impact of volatile financial market conditions on our business,
liquidity, prospects, pension assets and credit and insurance
facilities; the timing of recognition of previously deferred revenue;
and other risks and uncertainties discussed in our filings with the
Securities and Exchange Commission, including our Annual Report on Form
10-K and quarterly reports on Form 10-Q. Revenue and operating results
can fluctuate significantly from quarter to quarter, and in some cases,
year to year. We do not undertake to update our forward-looking
statements except as required by law.
Source: Centrus Energy Corp.
Centrus Energy Corp.
Media: Jeremy Derryberry, 301-564-3392
Investors:
Steven Wingfield, 301-564-3354
