USEC Nuclear Fuel Co: Toshiba, Babcock & Wilcox To Invest $200 Million
25 Mai 2010 - 11:09PM
Dow Jones News
U.S. nuclear fuel maker USEC Inc. (USU) said Tuesday that
Japanese conglomerate Toshiba Corp. (TOSYY, 6502.TO) and McDermott
International Inc. (MDR) unit Babcock & Wilcox Co. have agreed
to invest $200 million in USEC.
Toshiba and Babcock & Wilcox--which both have nuclear power
divisions--will invest $100 million each in USEC over three phases,
subject to regulatory approvals and other conditions, USEC said.
The investment will help USEC as it revises an application to the
U.S. Department of Energy for a $2 billion loan guarantee to build
a uranium enrichment facility in Ohio, called the American
Centrifuge Plant, the company said.
"In preparation for updating our Department of Energy loan
guarantee application to finance the American Centrifuge, we have
worked hard to successfully demonstrate the American Centrifuge
uranium enrichment technology and, as indicated by today's
announcement, to improve the financial foundation for the project
and the company," USEC President and Chief Executive John Welch
said in a statement.
Welch added that in addition to the funding, USEC will benefit
from the investor companies' "vast technical knowledge and
experience across the nuclear fuel cycle."
In return for their investment, Toshiba and Babcock & Wilcox
will receive convertible preferred stock and warrants to buy shares
of common stock that can be exercised in the future, USEC said.
"We have decided to make this investment in American know-how
and American technology in order to produce more uranium fuel for
the growing worldwide nuclear power market with high confidence in
USEC as a leading supplier of low enriched uranium," Yasuharu
Igarashi, a corporate senior vice president at Toshiba, said in a
statement.
USEC, of Bethesda, Md., said it plans to revise, or update, its
DOE loan guarantee application "sometime this summer."
In July, the DOE encouraged USEC to devote between 12 and 18
months on additional research and testing to resolve what it said
were "technology issues" with the company's proposed enrichment
plant.
On Thursday, the DOE said it approved a $2 billion loan
guarantee for USEC rival Areva S.A. (ARVCY, CEI.FR) of France, to
build a $3.3 billion nuclear enrichment facility in Idaho Falls,
Idaho. Areva plans to use an advanced centrifuge technology that is
not as commonly used in the U.S., but has been used in France for
30 years.
The DOE said an additional $2 billion is available to support
uranium enrichment technology.
The loan guarantee is part of a broader effort by the Obama
administration to stimulate the development of a U.S. supply base
for enriched uranium, to serve existing and new nuclear power
plants.
Shares of USEC closed up 24.1% at $5.26 Tuesday but were not
active in after-hours trading.
-By Cassandra Sweet, Dow Jones Newswires; 415-439-6468;
cassandra.sweet@dowjones.com
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