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Esterline Products Selected for UK Nuclear Decommissioning Project
Esterline Corporation (NYSE: ESL) (www.esterline.com), a leading specialty manufacturer primarily serving global aerospace, defense and industrial markets, today announced it will provide more than a thousand high-integrity stainless steel storage containers for Sellafield Limited, under contract to the UK Nuclear Decommissioning Authority (NDA). Sellafield Limited selected Esterline’s Darchem storage products to be used in their current decommissioning project at the Sellafield nuclear site, a UK nuclear decommissioning, reprocessing and waste management site dating back to the 1940s. Darchem products are known for high reliability in harsh environments and are produced at one of Esterline’s Engineered Materials facilities in the UK.
The concrete and stainless steel containers are designed for long-term storage of Intermediate Level Radioactive Waste, which will be retrieved from the legacy waste storage area on the Sellafield site and moved into the new, more compact and robust Darchem storage containers. The containers are being produced to a Sellafield design for long-term radioactive waste storage in the UK.
Esterline’s Chief Executive Officer, Curtis Reusser, said, “We know that our advanced protection materials are a good fit for a variety of applications in the nuclear energy market and decided to invest in our UK Engineered Materials facility to support that potential. We created a purpose-built facility for nuclear structures fabrication, which in part made this contract win possible.” That facility was formally opened by UK Cabinet Minister Michael Fallon in June 2014.
“We have a long-term commitment to the nuclear market with our reliable harsh environment products, both in decommissioning work and new build installations,” Reusser said, adding, “We look forward to working with the Sellafield team on this important project to revolutionize the storage of nuclear byproducts.”
The containers themselves are double walled and fabricated of Duplex-grade stainless steel, which is designed to very strict tolerance requirements and made to the highest quality standards. Esterline’s initial contract award is for the first, Development Phase of the project, expected to last two years. Full-production (Phase 2) of the project is forecast to run for approximately ten years thereafter. In total, Esterline expects the two contracts to generate approximately £50 million for the company. Current forecasts from the UK NDA indicate there will likely be a further long-term requirement for thousands more similar containers for other projects in the future.
Darchem products have existed in the global nuclear industry for over 45 years. This win helps Esterline secure a key supplier position for decades to come, in addition to supporting additional job creation and apprenticeship opportunities for the company at their UK locations.
Esterline Corporation is a leading worldwide supplier to the aerospace and defense industry specializing in three core areas: Advanced Materials; Avionics & Controls; and Sensors & Systems. With annual sales approaching $2 billion, Esterline employs roughly 12,000 people worldwide. Operations within the Advanced Materials segment focus on technologies including high-temperature-resistant materials and components used for a wide range of military and commercial aerospace purposes, and combustible ordnance and electronic warfare countermeasure products. Operations within the Avionics & Controls segment focus on technology interface systems for commercial and military aircraft and similar devices for land- and sea-based military vehicles, cockpit integration systems, secure communications systems, specialized medical equipment, and other high-end industrial applications. The Sensors & Systems segment includes operations that produce high-precision temperature and pressure sensors, specialized harsh-environment connectors, electrical power distribution equipment, and other related systems principally for aerospace and defense customers.
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “should” or “will,” or the negative of such terms, or other comparable terminology. These forward-looking statements are only predictions based on the current intent and expectations of the management of Esterline, are not guarantees of future performance or actions, and involve risks and uncertainties that are difficult to predict and may cause Esterline’s or its industry’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Esterline’s actual results and the timing and outcome of events may differ materially from those expressed in or implied by the forward-looking statements due to risks detailed in Esterline’s public filings with the Securities and Exchange Commission including its most recent Annual Report on Form 10-K.
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