BETHESDA, Md.--(BUSINESS WIRE)--Oct. 27, 2004--USEC Inc. (NYSE:USU) announced today that it has signed agreements with the Boeing Company and Honeywell International to support the manufacture of uranium enrichment machines for USEC's American Centrifuge program. The agreements, which extend through 2006, enable USEC to move forward with critical activities in its American Centrifuge program.
"We welcome Boeing and Honeywell to our American Centrifuge team," said USEC Senior Vice President Ron Green. "These two world-class manufacturing companies have solid engineering capabilities as well as considerable centrifuge experience through their involvement in the U.S. Department of Energy's (DOE) original centrifuge program. They offer strong support in building the machines for our American Centrifuge program."
Over the next two years, Boeing and Honeywell employees will work with experienced USEC employees and personnel from Oak Ridge National Laboratory at USEC's Centrifuge Technology Center and K-1600 facilities in Oak Ridge, Tennessee. During this period, centrifuge components will be manufactured, tested and assembled into full-size machines for USEC's American Centrifuge program. A substantial percentage of the parts will be manufactured and assembled in East Tennessee, with final machine assembly completed in Piketon, Ohio.
"In 2006, we expect to enter into new agreements with Boeing and Honeywell to manufacture the thousands of additional machines needed for our American Centrifuge program," said Green.
"Boeing is proud to partner with USEC by offering the expertise of Boeing employees and the unique centrifuge production capability at our Oak Ridge facility," said John Frazier, Sr., site leader for the Boeing Oak Ridge facility. "Our experience building centrifuges in Tennessee dates to 1981, when a Boeing subsidiary built the Oak Ridge facility to provide gas centrifuge machines for the Department of Energy's uranium enrichment program."
"Honeywell is very pleased to have been selected by USEC to be a member of the American Centrifuge team," said Roger Wolfe, vice president and general manager of Honeywell Engines, Systems & Services, Airframe Systems. "This is an excellent opportunity to utilize our previous centrifuge experience, which started in 1961, with our current expertise and manufacturing capabilities in high speed rotating machinery. We look forward to working with the USEC team in Oak Ridge to ensure the successful implementation of this critical program."
USEC's American Centrifuge is anticipated to be the world's most efficient uranium enrichment technology. It is based on proven centrifuge technology originally developed by DOE, but with expected improvements in efficiency through the use of modern materials, control systems and manufacturing processes.
This news release contains forward-looking information (within the meaning of the Private Securities Litigation Reform Act of 1995) that involves risks and uncertainty, including certain assumptions regarding the future performance of USEC. Actual results and trends may differ materially depending upon a variety of factors, which are described in USEC's periodic filings with the Securities and Exchange Commission. These SEC filings are available on USEC's website, www.usec.com.
USEC Inc., a global energy company, is the world's leading supplier of enriched uranium fuel for commercial nuclear power plants.
CONTACT:
USEC Inc.
Elizabeth Stuckle, 301-564-3399
Charles Yulish, 301-564-3391
or
Boeing
Chuck Cadena, 425-965-9378
or
Honeywell
Bill Reavis, 602-365-2055
SOURCE: USEC Inc.