August 28, 2008

Westinghouse Electric, Shaw Form JV for AP1000 Module Fabrication

Westinghouse Electric Company and The Shaw Group have signed a letter of intent to form a joint venture to fabricate and assemble structural and equipment modules for AP1000 nuclear power plants to be built in the US and select global markets in which in-country supply is not available.

Under terms of the letter of intent (LoI), Westinghouse and Shaw will each hold ownership shares in the joint venture. Additional terms were not disclosed, although final negotiations are expected to be completed within two months.

The new company, Global Modular Solutions, will construct a 600,000 square feet facility in Lake Charles, Louisiana, that is scheduled to begin operation in the late summer of 2009. When fully operational, the facility is expected to employ as many as 1,400 workers.

Dan Lipman, senior vice president of nuclear power plants at Westinghouse, said that the agreement to fabricate modules for the AP1000 nuclear power plant in Louisiana again proves that the nuclear renaissance is now a reality.