BETHESDA, Md.--(BUSINESS WIRE)--Jul. 6, 2009--
USEC Inc. (NYSE:USU) today announced that it expects the U.S. Department
of Energy (DOE) to make a decision on a conditional commitment for a
loan guarantee by early August. A loan guarantee conditional commitment
would allow USEC to continue deployment of its American
Centrifuge Plant, currently being built in Piketon, Ohio, and would
ensure the security of thousands of jobs created across the country by
the plant’s construction and manufacturing activities.
The Company also said that at the direction of its board of directors it
is preparing demobilization plans for the American Centrifuge Plant if
it does not receive a conditional commitment by early August. USEC
announced in February a slowdown in the planned escalation of spending
on the project and has stated that a further delay in obtaining a DOE
loan guarantee would require the Company to implement further project
spending reductions.
“Based on on-going discussions with DOE, we expect a decision on a
conditional commitment by early August,” said Philip G. Sewell, senior
vice president of American Centrifuge and Russian HEU. “We believe our
project is ideally suited for the loan guarantee program. It will use an
innovative technology, reduce greenhouse gas emissions and create
immediate jobs in the United States.”
“Over the past several months, we have had numerous discussions with the
Department. We will continue to work closely with DOE as we seek to move
forward on this vital project,” said Sewell.
“As we have stated in the past, a DOE loan guarantee is our path forward
for financing the American Centrifuge Plant. Therefore, we are making
contingency plans for project demobilization should we not receive a
conditional commitment or should a decision on a conditional commitment
be further delayed.”
Demobilization could be initiated in August and would involve the
partial or full halt of certain American Centrifuge project activities
and plant construction. Even if a conditional commitment is provided by
early August, demobilization may be initiated if the terms of such
conditional commitment are not acceptable or if subsequent progress
toward achieving actual funding later this year under the loan guarantee
is not maintained.
The American Centrifuge project supports over 5,700 jobs today and over
2,300 more jobs would be created within a year once loan guarantee
funding commences. Because of the cash conservation measures initiated
in February due to the lack of certainty on DOE funding, the project has
already delayed the expected ramp-up in hiring. Demobilization, if
initiated, would include significant layoffs of USEC and contractor
personnel in Ohio and a number of other states.
USEC has invested nearly $1.5 billion in the American Centrifuge project
and needs a DOE loan guarantee to secure the substantial portion of the
remaining financing needed to complete the project. USEC submitted its
application to DOE in 2008 and has been working closely with DOE to
expedite the process.
Background
As America’s only commercial uranium enrichment facility using
U.S.-owned and operated centrifuge technology, the American Centrifuge
Plant will play an important role in America’s energy security and
national security.
The American Centrifuge Plant represents the early commercial use of a
new technology, and it significantly reduces emissions of air pollutants
and greenhouse gases. USEC has invested nearly $1.5 billion in the
American Centrifuge project, including hundreds of millions of dollars
to help rebuild
portions of America’s nuclear industrial manufacturing base. The project
is expected to create over 8,000 new jobs as manufacturers add new
employees across the United States.
USEC is deploying the American Centrifuge technology to provide the
dependable, long-term, U.S.-owned and developed nuclear fuel production
capability needed to support the country’s nuclear power plants. The
American Centrifuge technology
is based on U.S. gas centrifuge technology originally developed by DOE
but with significant design, material and manufacturing improvements
incorporated by USEC. The Company received a license in April 2007 from
the U.S. Nuclear Regulatory Commission to construct and operate the
plant and commenced construction shortly thereafter. The plant is
designed to produce 3.8 million separative work units (SWU) a year of
low enriched uranium fuel for commercial nuclear power plants.
USEC Inc., a global energy company, is a leading supplier of enriched
uranium fuel for commercial nuclear power plants.
Forward Looking Statements
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: risks related to the deployment of the
American Centrifuge technology, including our ability to meet targets
for performance, cost and schedule and to obtain financing; our success
in obtaining a loan guarantee for the American Centrifuge Plant and the
impact of delays in financing on project spending, cost and schedule;
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 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.
Source: USEC Inc.
USEC Inc.
Media: Elizabeth Stuckle, 301-564-3399
Investors:
Steven Wingfield, 301-564-3354
