B&W and USEC Inc. Complete Formation of American Centrifuge Manufacturing, LLC

Tue May 3, 2011 6:37pm EDT

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B&W and USEC Inc. Complete Formation of American Centrifuge Manufacturing, LLC

The Babcock & Wilcox Company (B&W) (NYSE:BWC) announced today that its subsidiary Babcock & Wilcox Technical Services Group, Inc. (B&W TSG) and USEC Inc. (USEC) have completed the formation of American Centrifuge Manufacturing, LLC (ACM) to provide integrated manufacturing, assembly and delivery of centrifuge machines for USEC’s American Centrifuge Plant in Piketon, Ohio.

ACM is located at USEC’s American Centrifuge Manufacturing Center in Oak Ridge, Tenn.

“The formation of ACM brings a new focus on full integration of key manufacturing and assembly operations that support the American Centrifuge Plant,” said S. Robert Cochran, President of B&W TSG. “Completion of this initiative illustrates B&W’s continuing role in supporting the commercial nuclear industry’s need for a reliable fuel source.”

In addition to the precise machining of centrifuge components, ACM administers a consolidated approach for supply chain management of the suppliers and subcontractors supporting the program. ACM is responsible for shipments to the Piketon facility, as well as completion of final assembly operations there. ACM will also deliver spare parts and other maintenance support services for centrifuge machines at the American Centrifuge Plant under a long-term service agreement.

Carl Durham, who has served as President of Babcock & Wilcox Technical Services Clinch River LLC since its inception in 2007, has been named President and General Manager of ACM.

The American Centrifuge is USEC’s next-generation uranium enrichment technology. It is based on U.S. centrifuge technology, a proven, energy-efficient technology originally developed by the U.S. Department of Energy and significantly improved by USEC using updated materials and manufacturing methods. Working together, B&W and USEC teams have developed a unique domestic manufacturing capability that ACM is putting into commercial operations as an integrated joint company.

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 12,000 people, in addition to approximately 10,000 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 and scope of American Centrifuge Manufacturing, LLC. These forward-looking statements involve a number of risks and uncertainties, including, among other things, adverse changes in the nuclear industry. If these or other risks materialize, actual results may vary materially from those expected. 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 report on Form 10-K for the year ended December 31, 2010, as supplemented by its 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 hereof, and undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.

The Babcock & Wilcox Company
Media Contact:
Jud Simmons, 434-522-6462
Public Relations Manager
hjsimmons@babcock.com
or
Investor Contact:
Michael P. Dickerson, 704-625-4944
Vice President and Investor Relations Officer
investors@babcock.com