ML070250313

Autoliv Letter on Divesture Plan Re Indirect Transfer of Aerotest Research Radiography and Research Reactor

ML070250313
Person / Time
Site:	Aerotest
Issue date:	01/24/2007
From:	Mary Anderson Autoliv
To:	Mendonca M Division of Regulatory Improvement Programs
References
Download: ML070250313 (2)

Text

AutoIiv January 24, 2007 Marvin Mcndonca Senior Project Manager Mail Stop 012-G13 Operational Experience and Non-Power ReactOrs Branch Division of Regulatory lmprovcmcnt Programs Office oFNuclear 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 AerotesL Radiography and Research Reactor (ARRR), Docket No. 50-228 License No. R-98

Dear Mr. Mendonca:

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 ma'ter, J 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 ofAerotest.

To date, we have been unable to identify potential buyers of the business.

Several months ago, two customers of AeroLest expressed an interest in evaluating a purchase of the business, however, neither company has moved fbrward with the process. We clrrently view the chances that a sale will be madc to either company as remote. As a part of our continued divestiture efforts, we have assigned our Director of Business Development to formulate a plan for identiFying and approaching potential acquirers.

Revenue and earnings for the Aerotest rose in 2006 compared with the prior year.Acrotcst's testing services continue to be predominately related to government contracts, virtually all in the defense ficld, and in most cases AeroLest continues to be the only source of these testing services.:hzl S. Ander-son r- Pre.stdent for Legal Affahis Amoric'n Toch nirel Ccnler i Leneral Counsel 1320 Pacifhiv Dfri': AuIAUrin Hill.-., MI 43328)ne: (248) 475.0442:!(24S5) 475 9,'9'lhoie: (2o8) 4175-nou We will continue to comply with the negation plan contained in my January 29, 2004 letter. Although we have been unable to generate any realistic divestiture opportunities to date, it is our intention to continue our el'hrts to divest the business through the strategy outlined above. We would propose reporting our progress to you on a semianmual basis, unless a siapiificanmt opportunity arises that would make earlier reporting useful. I would be happy to answer any question you may have about the foregoing.

Please feel free to contact me at your convenience.

Very trldy yours, Michael S. Anderson Vice President for Legal Affairs and General Counsel cc: R. TsitkimnLtra