Babcock & Wilcox announced this week its Nuclear Operations Group has received a $600 million order as part of a $2 billion contract the company was awarded in 2010 from the federal government.
The order involves the manufacture of nuclear components to support U.S. defense programs, which includes making naval nuclear power systems for submarines and aircraft carriers, said Carla Parks Wooley, manager of communications and public relations for the NOG.
The work will take place at locations in Lynchburg, Indiana and two facilities in Ohio. Wooley said the Lynchburg work was not specific to a part of the order and the work would be spread between the locations.
The company employs about 2,400 people in the Lynchburg area.
The first order of the $2 billion contract was given in the first quarter of 2011 and was worth $807 million.
“This is just a continuation of existing work that we have,” Wooley said.
She said there will be no new jobs because of the order, since it is existing work.
The work for the new order started in January and will continue for an eight-year period.
The order was funded in the final quarter of 2011. Along with an annual contract to manufacture nuclear fuel and perform support activities — work to be performed at the NOG subsidy Nuclear Fuel Services location in Tennessee — the NOG reported $777.6 million of work contracted in the last three months of 2011.
At the end of 2011, the group booked about $3 billion of backlogged work, which has been awarded and received government funding.
“Each order has to be congressionally funded,” Wooley said.
She said the $3 billion backlog does not include the entire $2 billion contract this order was a part of, because not all of it has been approved by Congress.
“We are pleased to receive this additional work and continue B&W’s ongoing support of U.S. defense programs,” Peyton S. Baker, President of B&W NOG said in a statement. “We look forward to continuing to provide reliable and technologically advanced nuclear products that play an important role in our nation’s security.”
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