ML042170244

Divestiture Plan Regarding Indirect Transfer of the Aerotest Radiography and Research Reactor Docket No. 50-228, License No. R-98 (TAC No. MB13977)

ML042170244
Person / Time
Site:	Aerotest
Issue date:	07/29/2004
From:	Mary Anderson Autoliv
To:	Mendonca M Division of Regulatory Improvement Programs
References
TAC MB1977
Download: ML042170244 (2)

Text

Autoliv July 29, 2004 David Mathews Director Mail Stop: 012-ES United States Nuclear Regulatory Commission Office of Nuclear Reactor Regulation Washington, D.C. 20555-0001 Marvin Mendonca Senior Project Manager Mail Stop 012-G13 Operational Experience and Non-Power Reactors Branch Division of Regulatory Improvement Programs Office of Nuclear Reactor Regulation United States Nuclear Regulatory Commission Washington, D.C. 20555-0001 Via Facsimile (301-415-2279)

Re: Divestiture Plan Regarding Indirect Transfer of the Aerotest Radiography and Research Reactor (ARRR), Docket No. 50-228 License No. R-98 Gentlemen:

Pursuant to our earlier correspondence and discussions, the following is a report of Aerotest's activities in support of its divestiture plan. As a preliminary matter, I would like to report that Aerotest continues to meet the provisions of the negation plan proposed in my letter of January 29, 2004. All directors of Aerotest Operations, Inc., its parent company and the parent of its parent company continue to be U.S. citizens. No non-U.S.

director of any company in the Autoliv family of companies has taken any role, no matter how minor, in the operations of Aerotest.

I have earlier reported to you on the interest in the business expressed by each of two customers of Aerotest. Our most recent inquiry (within the last 30 days) indicates that, although they still desire to evaluate the purchase of the facility, one party has been delayed by activities related to another acquisition. The other possible buyer had concerns about a potential liability, which we have now clarified for them. They have indicated to us that they will resume their effort to evaluate a possible transaction. In addition to the above, we continue to attempt to identify and approach other parties we feel could have an interest in the Aerotest business. Given the nature of the facility, however, we have found the universe of potentially interested parties to be very small.

The Aerotest business continued to grow. In recent months, increased testing volumes for a defense contractor have had a significant positive impact on revenue, which we Michael S. Anderson Vire PesideM lor Legal DAflai Amencan Technlcat Center and eneral Co e1320 Pacifc Drive Phone: (248) 475-0442 A n Hills Ng 48326 FAr (248) 475-9296 Phone: (248) 475-9000 Ad, 9626s9LV8*[ T e~al AxjcT nWn dvc :va vo cE Inc

believe will carry over into the next quarter. Currently, approximately 80% of Aerotest's testing services are related to government contracts (i.e, sales of services to government contractors).

We will continue to comply with the negation plan contained in my January 29, 2004 letter, and to report to you at 60 day intervals concerning progress on our divestiture plan.

I would be happy to answer any question you may have about the foregoing. Please feel free to contact me at your convenience.

Very truly yours, Michael S. Anderson Vice President for Legal Affairs and General Counsel cc: R. Tsukimura I bO Oc Inc id96Z6SLI'8Z ong ITe1 DoT