Mount Vernon Facility Part of Big Contract

North Carolina-based B&W Nuclear Operations Group Inc. says a portion of nearly $200 million worth of contract work will be performed at a Mount Vernon facility. The deals involve components for nuclear submarines. April 30, 2014

News Release

CHARLOTTE, N.C. – The Babcock & Wilcox Company (B&W) (NYSE:BWC) announced today that its subsidiary B&W Nuclear Operations Group, Inc. (B&W NOG) has received contracts and orders from the U.S. Naval Reactors Program worth approximately $195 million.

Four new incrementally funded contracts totaling $76.8 million were awarded for engineering design, fabrication and further development work on the Ohio-class submarine replacement program.

A new contract valued at $18.8 million was also awarded for disassembly and recovery of highly enriched uranium materials in FY2014.

A $23.7 million incremental order for the manufacture of nuclear components to support U.S. defense programs, including the manufacture of U.S. Naval nuclear power systems for submarines and aircraft carriers, has also been released. This additional FY2014 order is part of a previously announced $1.3 billion contract.

In addition, an order for $76 million has been received for the procurement of material to be used in the assembly of nuclear propulsion components. This FY2014 release is part of a previously announced $366 million contract.

“B&W is pleased to receive these contracts supporting the U.S. defense programs, including the Ohio-class submarine replacement program and the overall mission of the U.S. Navy,” said Peyton S. Baker, President and Chief Operating Officer of B&W's government operations. “Smart execution in our shops is of paramount importance to the safe, reliable and cost-effective delivery of this hardware and design services to the U.S. government.”

Work under these contracts will be performed at B&W NOG's facilities in Lynchburg, Va., Mount Vernon, Ind. and Barberton and Euclid, Ohio.

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 10,200 joint venture employees. Learn more at www.babcock.com.

Source: The Babcock & Wilcox Co.