LYNCHBURG, Va.--(BUSINESS WIRE)--BWX Technologies, Inc. (NYSE:BWXT) announced today that its subsidiary BWXT Nuclear Operations Group, Inc. has been awarded a contract to manufacture additional Common Missile Compartment (CMC) tube assemblies for Columbia Class nuclear submarines. The value of the contract is $76.2 million.
This Block II award is the third contract that BWXT has received from General Dynamics Electric Boat to manufacture CMC missile tubes. Two previous Block I contracts were awarded in November 2014 and March 2016. To date, BWXT has been awarded approximately half of the available CMC tube assembly work.
The work will be conducted at BWXT’s Mount Vernon, Ind. manufacturing facility and is expected to be concluded in 2021. In connection with this and the prior awards, BWXT is in the process of adding 120 new jobs and renovating a 180,000-square-foot production facility at the Mount Vernon site.
“BWXT has made great progress in the manufacture of the Block I CMC missile tubes, and we look forward to getting started on this Block II award,” said Rex D. Geveden, BWXT’s President and Chief Executive Officer. “The missile tube work leverages our capabilities in high consequence manufacturing and is a key component of our plans for organic growth.”
The CMC missile tubes will be used on both the United States Columbia Class and the United Kingdom Dreadnought Class nuclear submarines. A CMC missile tube is equal to the height of a four-story office building and weighs a little over 50 tons.
Forward Looking Statements
BWXT cautions that this release contains forward-looking statements, including statements relating to the performance, timing and value, to the extent contract value can be viewed as an indicator of future revenues, of the CMC tube assemblies contract. These forward-looking statements involve a number of risks and uncertainties, including, among other things, modification or termination of the contract and the availability of U.S. Government appropriations. If one or more of these or other risks materialize, actual results may vary materially from those expressed. For a more complete discussion of these and other risk factors, please see BWXT’s annual report on Form 10-K for the year ended December 31, 2016 and subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. BWXT cautions not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.
About BWXT
Headquartered in Lynchburg, Va., BWX Technologies, Inc. (NYSE:BWXT) is a leading supplier of nuclear components and fuel to the U.S. government; provides technical and management services to support the U.S. government in the operation of complex facilities and environmental remediation activities; and supplies precision manufactured components, services and fuel for the commercial nuclear power industry. With approximately 6,100 employees, BWXT has nine major operating sites in the U.S. and Canada. In addition, BWXT joint ventures provide management and operations at a dozen U.S. Department of Energy and two NASA facilities. Follow us on Twitter @BWXTech and learn more at www.bwxt.com.
