Centrus Completes American Centrifuge Demonstration in Ohio; Workforce Reductions to Begin
19 Fevereiro 2016 - 7:55PM
Business Wire
- Centrifuge research, engineering and
testing work will continue in Oak Ridge, Tenn.
- Ohio centrifuge cascade to be
demobilized after successful three-year demonstration
- First stage of Ohio workforce
reductions begin week of February 29
- Centrus preserving NRC license and
options for future use of Ohio facility
Centrus Energy Corp. (NYSE MKT: LEU) announced today that it has
completed operations of its demonstration cascade of American
Centrifuge machines at its facility in Piketon, Ohio, but plans to
maintain its construction and operating license from the U.S.
Nuclear Regulatory Commission (NRC) for a commercial plant to
preserve options for the future use of the facility. In addition,
with ongoing funding from the U.S. Department of Energy’s (DOE) Oak
Ridge National Laboratory (ORNL), Centrus plans to continue
advancing the technology for national security and energy security
purposes at the Company’s state-of-the-art research and testing
facilities in Oak Ridge, Tennessee.
DOE announced in September 2015 that it would not fund
additional demonstration at Piketon after September 30, 2015,
because the cascade had successfully delivered the necessary
operational data. Since that time, Centrus has funded ongoing
operations while exploring other potential uses for the facility
and its unique workforce. Centrus will demobilize the demonstration
cascade and reduce its workforce at Piketon starting with the
layoff of approximately 60 employees during the week of February
29. In the coming weeks, the Company will begin decontamination and
decommissioning (D&D) activities of the demonstration cascade
in accordance with its NRC license for the demonstration facility.
The Company plans to maintain its core technical capabilities and
preserve its ability to support future nuclear projects at the
Piketon site.
“We believe that the United States must remain a global leader
in uranium enrichment technology, and the work of our team at
Piketon has made enormous contributions to that effort,” said
Daniel B. Poneman, Centrus president and chief executive officer.
“This is a painful day for our employees, families, friends, and
colleagues, but all should be proud of the great work of our
Piketon team. They have met every milestone in this project, which
they completed on time and under budget. We will do all that we can
to facilitate their transition to new opportunities.”
“We deeply appreciate the unwavering, long-standing support from
the community and Ohio’s elected officials for the great work that
has been done at Piketon,” Poneman added. “That remains an
invaluable asset as we develop other opportunities for the site and
our workforce.”
DOE: American Centrifuge is “most technically advanced
and lowest risk option”
In an October 2015 report, DOE determined that the United States
must restore its uranium enrichment capability to meet long-term
national security needs and further determined that the American
Centrifuge technology is the “most technically advanced and lowest
risk option” for doing so.
ORNL informed Centrus in September 2015 that it intends to
extend the Company’s contract for ongoing research and testing
activities in Oak Ridge through September 2016. Centrus currently
has more than 120 employees working at two dedicated facilities in
the Oak Ridge area to engineer, design, and test improvements in
full-size machines operating in individual test stands. The
Company’s scientists and engineers will continue to improve the
reliability and manufacturability of centrifuge machines for
potential future applications. Centrus plans to maintain its
critical technological expertise in advanced gas centrifuge uranium
enrichment and to continue to develop that technology for national
security purposes and to evaluate how best to develop the
technology for long-term commercial use.
As a result of the decision to demobilize the demonstration
facility, Centrus will incur costs associated with the D&D in
accordance with the requirements of the NRC and DOE, as well as
severance and other demobilization costs. Centrus is required to
provide financial assurance to the NRC and DOE for D&D and
lease turnover costs under a regulatory-prescribed methodology that
includes potential contingent costs and reserves. Centrus has
previously provided financial assurance to the NRC and DOE in the
form of surety bonds of $16.0 million and $13.0 million,
respectively, which are fully cash-collateralized by Centrus. The
Company expects to receive cash as the surety bonds are cancelled
following its performance of D&D or reduced based on our
satisfaction of lease conditions.
LEU Business Unaffected
The decision to cease demonstration activities will not affect
Centrus’ commercial fuel business or its deliveries to utility
customers. While Centrus continues to be committed to supporting
America’s national security needs, the vast majority of the
Company’s revenues are generated through the sale of uranium and
enriched uranium fuel to power civilian nuclear power plants around
the world – meeting customers’ needs through a large, diverse base
of supply sources.
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. Our mission is to provide reliable and
competitive fuel goods and services to meet the needs of our
customers, consistent with the highest levels of integrity, safety,
and security.
Forward-Looking Statements
This news 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, 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
ongoing transition of our business, including uncertainty regarding
the economics of and continued funding for the American Centrifuge
project and the potential for a demobilization or termination of
the project; the impact of enrichment market conditions, increased
project costs and other factors on the economics of the American
Centrifuge project and our ability to finance the project and the
potential for a demobilization or termination of the project;
potential changes in our anticipated ownership of or role in the
American Centrifuge project, including as a result of the need to
raise additional capital to finance the project; the impact of
actions we have taken or may take to reduce spending on the
American Centrifuge project, including the potential loss of key
suppliers and employees, and impacts to cost and schedule; risks
relating to the decontamination and decommissioning of activities
at the Piketon facility, including costs or expenses associated
with decontamination and decommissioning and financial assurances
provided by us to the NRC and DOE in connection with lease turnover
costs; uncertainty regarding the potential for the DOE to seek to
terminate or exercise its remedies under the June 2002 DOE-USEC
Agreement; potential for any changes to or termination of any
agreements with the U.S. government; changes in U.S. government
priorities and the availability of government funding, including
loan guarantees and ongoing funding for the ORNL; uncertainty
regarding the NRC’s willingness to renew our license to operate a
commercial plant in Piketon; the impact of government regulation by
DOE and NRC; 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 at 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/20160219006001/en/
Centrus Energy Corp.Media:Jeremy Derryberry,
301-564-3392orInvestors:Don Hatcher, 301-564-3460
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