Street Calls of the Week
Investing.com -- BWX Technologies, Inc. (NYSE:BWXT) stock gained 2% in after-hours trading Tuesday following the announcement of a $1.6 billion contract with the Department of Energy’s National Nuclear Security Administration.
The 10-year contract tasks BWXT with establishing a supply of high purity depleted uranium (HPDU) to support national security missions. Under the agreement, the company will design and build an HPDU manufacturing plant at its Jonesborough, Tennessee site, with production capacity of up to 300 metric tons annually.
"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.
The new facility is expected to create approximately 175 highly skilled jobs once fully operational. Additional workers will be hired during the construction phase, with BWXT subcontractors supporting the build-out of facilities and production lines.
According to the company, the Jonesborough facility will become the only active site capable of converting uranium oxide to usable metal for the government once completed. BWXT acquired the Jonesborough site earlier this year as part of its strategy to expand its special materials business line.
The company’s conceptual design plan emphasizes engineered environmental controls and solid waste management, with no additional liquid discharge from the new facility into local waterways.
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