Companies Lead Nuclear Manufacturing Renaissance in U.S.
BETHLEHEM, Pa.--(BUSINESS WIRE)--Nov. 28, 2012--
Lehigh Heavy Forge Corporation and The Babcock & Wilcox Company (B&W)
(NYSE:BWC) were joined by Pennsylvania Governor Tom Corbett today in
announcing a supply agreement for B&W mPower™ small modular reactor
(SMR) forgings.
Under terms of the agreement, Lehigh Heavy Forge and B&W plan to jointly
participate in the fabrication and qualification of large forgings for
nuclear reactor components which are intended to be used in the
manufacture of B&W mPower SMRs.
Prototype and standard forgings would be manufactured at Lehigh Heavy
Forge’s Bethlehem facility as B&W moves into the component manufacturing
phase of its program. The B&W-Lehigh team will be working to revitalize
the United States manufacturing infrastructure needed to supply heavy
forgings for the commercial nuclear power industry after a national
capability gap of more than three decades.
Lehigh Heavy Forge will use the process of manufacturing prototype B&W
mPower forgings to seek a Material Organization Quality System
accreditation with ASME for future heavy component manufacturing. Lehigh
Heavy Forge also has plans to make additional facility upgrades to
support future B&W mPower reactor manufacturing needs.
Governor Tom Corbett said, “For some time now I have used a simple
equation to help explain moments like this. Energy equals jobs. These
small modular reactors promise to take us farther down the road to
energy independence while creating new jobs and sustaining old ones
right here in Pennsylvania.”
“We have been making significant capital investments in our facilities
as we get ready for what we believe will be a strong push for small
modular reactor heavy components,” stated James J. Romeo, President of
Lehigh Heavy Forge. “We look forward to using our unique capabilities
and demonstrated experience to be a significant contributor to the B&W
mPower reactor’s successful deployment.”
Christofer M. Mowry, President of Babcock & Wilcox mPower, Inc., said,
“As we move forward with plans to deploy the B&W mPower reactor, one of
our commitments is to use U.S.-based suppliers. American manufacturing
is at the heart of the history of both our companies, and we are proud
to have Lehigh Heavy Forge join the mPower America effort in bringing
small modular reactor manufacturing expertise back to the U.S.”
“Cooperation between the United Steelworkers Union and Lehigh Heavy
Forge has been key to Lehigh Heavy Forge’s success, and we look forward
to continued growth and American jobs associated with the mPower
program,” said United Steelworkers of America Local 2599 President,
Jerry Green.
B&W recently was selected as the winner of the U.S. Department of
Energy’s Small Modular Reactor Licensing Technical Support Program. The
funding B&W will receive under the program will support the development
of its B&W mPower reactor technology and help the Company maintain its
position as the global leader in SMR development.
B&W and its affiliates also have executed 150 Memoranda of Understanding
with B&W mPower reactor suppliers in 36 states. These represent the
first wave of B&W domestic supplier engagements that would expand U.S.
supply base capabilities and supplement B&W’s existing group of nuclear
suppliers. As anticipated market opportunities mature, these business
relationship agreements are expected to evolve into domestic strategic
supplier agreements establishing capacity and pricing terms for future
B&W mPower SMR projects.
About Lehigh Heavy Forge Corporation
A subsidiary of WHEMCO Inc (Pittsburgh, PA), Lehigh Heavy Forge
Corporation in Bethlehem, PA operates the largest open die forging press
in the Western Hemisphere and is the last super heavy forging operation
in the United States. The forging facility, a leader in open die forging
since 1887, is a key supplier of high quality product to a variety of
markets including nuclear energy, power generation, rolling mill, custom
open die, capital goods, hydroelectric, shipbuilding, and defense.
About B&W
Headquartered in Charlotte, N.C., The Babcock & Wilcox Company is a
leader in clean energy technology and services, primarily for the
nuclear, fossil and renewable power markets, as well as a premier
advanced technology and mission critical defense contractor. B&W has
locations worldwide and employs approximately 12,700 people, in addition
to approximately 10,400 joint venture employees. Learn more at www.babcock.com.
Cautionary Statement Regarding Forward Looking Statements
B&W cautions that this release contains forward-looking statements,
including statements relating to the plans, commitments, expectations
and beliefs expressed regarding SMR technology, the B&W mPower reactor,
SMR market opportunities and the evolution of our supplier
relationships. These forward-looking statements involve a number of
risks and uncertainties, including, among other things, our inability to
finance B&W mPower research and development efforts and adverse changes
in the demand for or competitiveness of nuclear power. If one or more of
these or other risks materialize, actual results may vary materially
from those expressed. For a more complete discussion of these and other
risk factors, please see B&W's filings with the Securities and Exchange
Commission, including its annual reports on Form 10-K and quarterly
reports on Form 10-Q. B&W cautions not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
release, and undertakes no obligation to update or revise any
forward-looking statement, except to the extent required by applicable
law.
Source: The Babcock & Wilcox Company
B&W Media Contact:
Aimee Mills, Communications Manager,
434-841-8541
aemills@babcock.com
or
Investor
Contact:
Jenny Apker, Vice President and Investor Relations,
704-625-4937
investors@babcock.com
or
Lehigh
Heavy Forge Media Contact:
Allan Robertson, Vice President
Marketing and Sales, 610-332-8112
arobertson@lhforge.com
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