- Three-Way Agreement to Supply Carbon Fiber for Rotor Tubes for
American Centrifuge Plant -
BETHESDA, Md.--(BUSINESS WIRE)--Aug. 20, 2007--USEC Inc. (NYSE:USU) announced today it has entered into a three-way manufacturing supply agreement with Hexcel Corporation (NYSE:HXL) and with Alliant Techsystems (NYSE:ATK) for carbon fiber for rotor tubes to be used in USEC's American Centrifuge uranium enrichment plant.
Hexcel, America's largest producer of carbon fiber, will produce carbon fiber at its facilities in Salt Lake City, Utah, and deliver it to ATK. This fiber will be used by ATK to manufacture composite rotor tubes at its facilities in Rocket Center, W.Va. The rotor tubes will be used in USEC's American Centrifuge Plant in Piketon, Ohio. ATK is currently under contract to prepare for high-volume manufacturing of over 11,500 rotor tubes for gas centrifuge machines.
The agreement, which runs through the end of 2011, is worth approximately $100 million. USEC has the option to buy from Hexcel additional carbon fiber product that could roughly double the value of the contract. The majority of the Hexcel sales will be in years 2010 and 2011. Hexcel has agreed to add manufacturing capacity to assure that it can fulfill the contract. USEC has minimum purchase requirements under the contract, and Hexcel has incentives to meet the delivery schedule.
"This agreement with Hexcel and ATK is a key step in our efforts to establish the manufacturing infrastructure necessary to build thousands of centrifuge machines for our American Centrifuge Plant. It is a great example of our dedication to reinvigorating America's nuclear industrial manufacturing base," said Philip G. Sewell, USEC senior vice president, American Centrifuge & Russian HEU. "The multi-million dollar agreement also demonstrates USEC's commitment to deploying the American Centrifuge Plant."
USEC is working toward beginning commercial plant operations in late 2009 and achieving about 3.8 million separative work units (SWU) of production in 2012 based on current estimates of machine output and plant availability. The U.S. Nuclear Regulatory Commission issued a construction and operating license for the American Centrifuge Plant in April 2007 and construction officially began in May 2007.
In addition to ATK, USEC's American Centrifuge strategic suppliers include BWX Technologies Inc., Fluor Corporation and Honeywell International. As America's only commercial uranium enrichment facility using U.S. centrifuge technology, the American Centrifuge Plant will play an important role in America's energy security. Enrichment is the process by which the concentration of the fissionable uranium isotope, U-235, is increased in order to make fuel for nuclear power plants.
USEC Inc., a global energy company, is a leading supplier of enriched uranium fuel for commercial nuclear power plants.
This news release contains forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainty. Economic, business, market, regulatory, technology and other factors could cause our actual future results to differ materially from those expressed in our forward-looking statements. More information about these factors is contained 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.
CONTACT: USEC Inc.
Media:
Elizabeth Stuckle, 301-564-3399
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Steven Wingfield, 301-564-3354
SOURCE: USEC Inc.