BWXT Awarded Contract to Produce High Purity Depleted Uranium for National Defense Purposes

BWX Technologies, Inc. (NYSE: BWXT) announced today it has been awarded a 10-year contract valued at $1.6 billion by the Department of Energy’s National Nuclear Security Administration to support the national security mission of establishing a supply of high purity depleted uranium (HPDU).

Under the contract, BWXT will initiate requirements to build an HPDU manufacturing plant, which includes designing the plant, applying for the necessary licenses, procuring long-lead equipment, preparing the physical site, demonstrating manufacturing readiness and operating the plant. Under this contract, BWXT will produce up to 300 metric tons of HPDU annually. BWXT will locate the plant at its site in Jonesborough, Tennessee.

“This project represents a significant investment in northeast Tennessee and advances the BWXT legacy of supporting mission-critical work for defense purposes,” said Rex D. Geveden, president and CEO of BWXT. “BWXT acquired the Jonesborough site earlier this year to augment our special materials business line. The HPDU plant supports that growth strategy and enables the U.S. capability to produce this vital material for national security.”

Once fully operational, the new facility is expected to create approximately 175 highly skilled jobs. BWXT subcontractors will support the build-out of facilities and production lines along with hiring additional employees for the construction project.

The process to make HPDU consists of converting uranium oxide to usable metal, which has been done previously at the Jonesborough site, and at other sites throughout the U.S. The BWXT conceptual design plan focuses on engineered environmental controls and will utilize solid waste management with no additional liquid discharge from the new facility into local waterways. BWXT is committed to continuous improvements in our manufacturing processes to achieve maximum sustainability and environmental stewardship within our shared communities.

Once completed, BWXT’s Jonesborough facility will be the only active site capable of performing this critical process for the government.