USEC cuts spending in centrifuge plant as it waits for loan guarantee decision

3 October 2011

USEC will reduce spending on its American Centrifuge Plant by around 30% in October. The company also says planning is underway for possible demobilization from November if it does not get a conditional commitment on a US Department of Energy loan guarantee.

“Working with our strategic investors, we expect October to be a month of intense interaction with the DOE so we can continue to deploy this innovative American technology – one that is critical to the nuclear fuel cycle and to our energy and national security,” said John Welch, president and CEO.

“Absent a conditional commitment by the end of October, layoffs of employees and further actions with suppliers are likely to occur.”

USEC has already suspended a number of contracts with suppliers and contractors and advised them that it may demobilize the project in November. Around 800 jobs could be affected, USEC said.

The company’s stand still agreement with its strategic investors Toshiba Corporation and The Babcock & Wilcox Company (B&W) has been extended through 31 October, providing additional time to achieve a conditional commitment and close the $50 million second phase of their $200 million investment in USEC. USEC said the strategic investors ‘remain supportive.’

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