ORNL Will Extend Centrus’ Contract for Advanced Uranium Enrichment Centrifuge Research at Reduced Level
11 Setembro 2015 - 8:09PM
Business Wire
- Will extend contract for one year
- Funding cut by approximately 60
percent
- Continues technology development
activities at Oak Ridge facilities
- Revenue used for Piketon operations
discontinued
- Reduction in funding may require
layoffs
Centrus Energy Corp. (NYSE MKT: LEU) confirmed today that Oak
Ridge National Laboratory (ORNL) has informed Centrus that it
intends to extend its contract with the Company at a reduced level
for research on the world’s most advanced uranium enrichment
centrifuges. DOE’s decision to provide reduced funding will support
continued developments of the company’s American Centrifuge
technology – which have long-term importance for our national and
energy security.
The new contract will cover the period from October 1, 2015, to
September 30, 2016, with the possibility for additional extensions.
It excludes continued operations of America’s only operating
cascade of advanced uranium enrichment centrifuges in Piketon,
Ohio. Funding will be reduced by approximately 60 percent to $35
million per year, and the scope of activities will be limited to
development activities in Oak Ridge, Tennessee.
“While obviously we are disappointed by the decision to
significantly downsize America’s advanced centrifuge program, we
appreciate the Laboratory’s recognition that the technology has
been effectively demonstrated over the last two years of hard work
at Piketon,” said Centrus Vice President Steve Penrod, who oversees
the American Centrifuge program for the company. “We will work with
the Laboratory and with Congress to protect as much of the core
capabilities of the program as possible so that the technology will
remain ready for deployment when the U.S. government calls upon it
for national security purposes.”
“In the coming weeks, we will explore options to protect the
technology and our workers in Ohio, whose expertise, creativity,
and dedication represent an invaluable asset for the Nation,” said
Daniel B. Poneman, president and CEO of Centrus. “Cuts to our
workforce would impose hardship on families and communities, while
jeopardizing future progress. We will do all that we can to ease
transitions while preserving as much of our scientific, technical,
and industrial expertise as we can with the available funding.”
A fact sheet describing the national security importance of
preserving U.S. leadership in uranium enrichment technology is
available at:
http://www.centrusenergy.com/sites/default/files/National%20Security%20Importance%20of%20U.S.%20Enrichment%20Capability.pdf
A fact sheet detailing the existing advanced centrifuge program
and the impact of the funding reductions is available at:
http://www.centrusenergy.com/sites/default/files/Fact%20Sheet%20on%20Existing%20Program%20and%20Reductions.pdf
Centrus anticipates that it will incur costs, which are being
evaluated, associated with the reduction in workforce and the
further demobilization of the program. Should closure of the
Piketon, Ohio, facility be required, Centrus would incur still
further costs associated with that closure and return of the
facility in compliance with U.S. Nuclear Regulatory Commission
requirements and pursuant to its lease with DOE.
About Centrus Energy Corp.
Centrus Energy Corp. is a trusted supplier of enriched uranium
fuel for commercial nuclear power plants in the United States and
around the world.
Forward-Looking Statements:
This press release contains "forward-looking statements" within
the meaning of Section 21E of the Securities Exchange Act of 1934 -
that is, statements related to future events. In this context,
forward-looking statements may address our expected future business
and financial performance, and often contain words such as
“expects”, "anticipates", "intends", "plans", "believes", "will",
"should", "could" or "may" and other words of similar meaning.
Forward-looking statements by their nature address matters that
are, to different degrees, uncertain. For Centrus Energy Corp.,
particular risks and uncertainties that could cause our actual
future results to differ materially from those expressed in our
forward-looking statements include risks related to the dependency
on government funding or other government support for the American
Centrifuge project from Congressional appropriations, including for
our contract discussed in this press release, or on actions by DOE
or Congress; changes in U.S. government priorities and the
availability of government support for the American Centrifuge
project; uncertainty regarding our ability to commercially deploy
the American Centrifuge project; uncertainty regarding the timing
and structure of the U.S. government program for maintaining a
domestic enrichment capability to meet national security
requirements and our role in such a program; the impact of actions
we have taken or might take in the future to reduce spending on the
American Centrifuge project, including the potential loss of key
suppliers and employees and impacts to cost, schedule and the
ability to remobilize for commercial deployment of the American
Centrifuge Plant; the impact of nuclear fuel market conditions and
other factors on the economic viability of the American Centrifuge
project without additional government support and on our ability to
finance the American Centrifuge project and the potential for a
further demobilization or termination of the American Centrifuge
project; risks related to the costs associated with the reduction
in workforce and the further demobilization of the American
Centrifuge project; uncertainty regarding our ability to achieve
targeted performance over the life of the American Centrifuge Plant
which could affect the overall economics of the American Centrifuge
Plant; risks related to our significant long-term liabilities
including material unfunded defined benefit pension plan
obligations and postretirement health and life benefit obligations;
risk that the matters discussed in this press release may have
other impacts on our business, liquidity, prospects, pension assets
and insurance facilities; 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.centrusenergy.com. We do not undertake to update our
forward-looking statements except as required by law.
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version on businesswire.com: http://www.businesswire.com/news/home/20150911005927/en/
Centrus Energy Corp.Media:Jeremy Derryberry,
301-564-3392orInvestors:Don Hatcher, 301-564-3460
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