USEC, Toshiba and B&W Close on First Phase of Strategic Investment

USEC Inc. closed on the first phase of a strategic investment in the company by nuclear power industry leaders The Babcock & Wilcox Company and Toshiba Corporation.

USECBETHESDA – USEC Inc. closed on the first phase of a strategic investment in the company by nuclear power industry leaders The Babcock & Wilcox Company and Toshiba Corporation. This investment of $75 million will be used for continued progress on activities related to the American Centrifuge Plant in Piketon, Ohio and general corporate purposes.

In May 2010, USEC announced that Toshiba Corporation and Babcock & Wilcox Investment Company, an affiliate of The Babcock & Wilcox Company (B&W), signed a definitive agreement to make a $200 million investment in USEC over three phases. Phase one closed today. Closing on phase two of the investment of $50 million will occur when, among other things, USEC secures a conditional commitment on a loan guarantee from the U.S. Department of Energy (DOE). The balance of the investment – $75 million – in phase three is conditioned, among other things, on closing on a $2 billion loan under DOE’s loan guarantee program for the American Centrifuge Plant and USEC shareholder approval of certain matters. At the end of July, USEC submitted a comprehensive update to its application to obtain a DOE loan guarantee.

“This investment is an important vote of confidence by two leaders in the nuclear power industry and will strengthen the deployment of the American Centrifuge Plant,” said John K. Welch, USEC president and chief executive officer. “Further, this is another essential step in the development of a strategic relationship that we believe will create new business opportunities for all three companies as the global fleet of nuclear power reactors grows.”

“As energy needs grow around the world, we are very pleased to expand our role in the nuclear renaissance,” said Yasuharu Igarashi, corporate senior vice president of Toshiba. “Nuclear power is safe and reliable, and it is a key element in the solution to carbon emissions.”

“This investment also initiates the formation of American Centrifuge Manufacturing, a joint venture between B&W and USEC which will provide integrated manufacturing and assembly of centrifuge machines for USEC’s American Centrifuge Plant,” said S. Robert Cochran, President of Babcock & Wilcox Technical Services Group, Inc. “In addition, this investment will allow B&W, Toshiba and USEC to build on their relationship by creating new opportunities for their organizations.”

In connection with their investment, Toshiba and B&W elected two new members to USEC’s Board of Directors. These directors are Hiroshi Sakamoto, senior vice president and board director, Toshiba America Nuclear Energy Corporation, a subsidiary of Toshiba Corporation, and Michael S. Taff, senior vice president and chief financial officer of B&W.

Closing on the first phase of the investment follows a review of the investment by the U.S. Nuclear Regulatory Commission and DOE and, with respect to Toshiba’s investment, by the Committee on Foreign Investment in the United States.

Additional details regarding the investment are described in USEC’s Current Report on Form 8-K filed with the SEC today and can be accessed at

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Source: USEC Inc.
Photo: USEC Inc.