September 25, 2008
Fluor Awarded $1 Billion USEC American Centrifuge Project
Fluor Corporation (NYSE: FLR) announced today that it was awarded a contract for engineering, procurement, construction and construction services (EPC) of about $1 billion for USEC's American Centrifuge Plant in Piketon, Ohio. Fluor will book the revenue into backlog as the client releases task orders throughout the rest of 2008 and 2009.
Fluor performed front-end engineering and design and construction services for USEC from May 2004 to July 2007, with detailed design also underway on the project. A construction team has been mobilized to the site to perform preliminary construction support activities and to begin the demolition of some existing buildings. Employee staffing will peak in mid-2009 when about 800 workers are expected to be on site.
"We are extremely pleased to continue our work for USEC's critical American Centrifuge Project," said David Seaton, president of Fluor's Energy & Chemicals business group. "This is an important project for both companies as well as for the future of U.S. nuclear energy," he said. "We have had a long successful relationship with USEC and look forward to working with them toward the successful completion of this program."
"This $1 billion engineering, procurement and construction contract with Fluor exemplifies the significant progress we continue to make on deploying the American Centrifuge Plant," said Philip G. Sewell, USEC senior vice president, American Centrifuge and Russian HEU. "The American Centrifuge project is creating thousands of jobs at sites across the United States. This contract is expected to create approximately 1,000 new jobs, including 800 jobs at the Ohio site."
Fluor's work at the American Centrifuge Plant will assist USEC in providing dependable, long-term U.S.-owned nuclear fuel production capacity needed to support the country's existing nuclear plants, as well as those expected to be built in the future.
On a separate program, Fluor is currently contracted with Toshiba for two new nuclear reactors planned for the South Texas Project (STP) Nuclear Generating Station in Bay City, Texas. The project is expected to be among some of the first nuclear generating units to be built in more than two decades.
"The valuable experience gained by our engineering and construction professionals who are designing and building the American Centrifuge plant, coupled with our STP nuclear work in southern Texas, positions Fluor with unique EPC qualifications for nuclear new-build projects," said David Constable, president of Fluor's Power business group.
USEC is currently the sole U.S.-based centrifuge technology supplier and therefore plays an important role in the nation's energy and national security. Uranium enrichment is the process by which the concentration of the fissionable uranium isotope, U-235, is increased in order to make fuel for nuclear power generating units.
USEC Inc., a global energy company, is a leading supplier of enriched uranium fuel for commercial nuclear power plants.
Fluor Corporation (NYSE: FLR) provides services on a global basis in the fields of engineering, procurement, construction, operations, maintenance and project management. Headquartered in Irving, Texas, Fluor is a FORTUNE 500 company with revenues of $16.7 billion in 2007. For more information, visit www.fluor.com.