ML20249A874

PNS-77-007A:forwarding Press Release Issued by Us Nuclear, Inc Re Phasing Down of Operation

ML20249A874
Person / Time
Site:	07001327
Issue date:	03/03/1977
From:	Haller N, Mccormick R NRC OFFICE OF INSPECTION & ENFORCEMENT (IE)
To:
References
PNS-77-007A, PNS-77-7A, NUDOCS 9806190033
Download: ML20249A874 (3)

Text

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'l PRELIMINARY NOTIFICATION EXEMPT FROM PUBLIC DISCLOSURE PURSUANT TO 10 CFR 2.790(d)

March 3, 1977 PRELIMINARY NOTIFICATION OF SAFEGUARDS EVENT- FNS-77-07A This preliminary notification constitutes EARLY notice of events of POSSIBLE national security or public interest significance. The information presented { I is as initially received without verification or evaluation and is basically all that is known by IE staff as of this date.

Facility: U. S. Nuclear, Inc. (Docket No. 70-1327)

Subject:

POSSIBLE CLOSE-DOWN 01 PRODUCTION OPERATIONS I Attached is a copy of the press release issued by U. S. Nuclear, Inc.

concerning the phasing down of its operation. ,

This supplemental PN is being sent because the press release was not M available when the original PN was issued.

Contact:

RCMcCormick, IE x27353 NHHaller, IE ::27351 Distribution: O Chairman Rowden C. C. Kammerer, CA G. F. Murphy, JCAE /

Commissioner Gilinsky S. J. Chilk, SECY H. H. Whiteside, SCNR /

Commissioner Kennedy H. R. Myers, HCEE L. V. Gossick, EDO K. R. Chapman, NMSS o

R. G. Ryan, OSP 4 S. H. Hanauer, EDO E. Volgenau, OIE J. A. Harris, PA B. C. Rusche, NRR H. K. Shapar, ELD T. J. McTiernan, OIA Transmitted: PBldg /.'MpA.; H S t /. / f/ *. ; CS ///7h._; Land /' .,

. EXEMPT FROM PUBLIC DISCLOSURE PURSUANT TO 10 CFR 2.790(d)

,. PRELIMINAR'_* NOTIFICATION

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PDR IS E PNS-77-OO7A PDR

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l U. S. NUCLEAR, INC.

, i l- PRESS RELEASE I e

, U. S. Nuclear confirmed today that it is phasing down its fuel fabrication I 1

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operations in the Clinch River Industrial Park. President Sam C. Weaver stated that the company was hoping that this would be a temporary situation

'until U. S. Nuclear can complete arrangements for another company to take over the operations. Dr. Weaver explained that U. S. Nuclear was in the  !

process of completing several contracts and would not begin work on new contracts until new financial arrangements are certain. The company plans to maintain a skeleton staff for-the next several months to maintain the rx plant and handle business matters.

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Dr. Weaver stated that operations during the last year have not been pro-fitable. He cited substantially increased safeguards costs to protect-nuclear material and declining sales as the chief reasons. Weaver said  ;

that the Nuclear Regulatory Commission has announced that it intends to impose additional requirements that will be very costly. The cost of c these new requirements far exceed U. S. Nuclear's financial resources.

U. S. Nuclear is currently talking with two organizations who are inter-o ested in'the company and who have the financs.a1 resources to meet the new requirements. The other factor, declining sales, can be attributed to

- a reduction in government funding of test and research reactors.

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U. S. Nucicar, Inc.

P_ress Release ,

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U. S. Nuclear,'Inc._ - -

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1 DuringthephasedownU.S.Nuclearhasbeenworkingwithareacompanies to find employment for its employees. Dr. Weaver said that the company is conducting programs aimed at assisting employees who are laid off to find other employment.

BACKGROUND

. U. S. Nuclear, Inc. is the only private company in the United States

. currently making a wide range of fuel elements for tests and research i

reactors (two other companies each make, fuel for a single reactor on cost-plus govarnment contracts). The U. S. Nuclear Fuel Fabrication

/ ^ '- Facility is located on Bear Creek Road in the Clinch River Consolidated

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Indu'strial Park, Oak Ridge, Tennessee. This is a tract of land set aside for nuclear oriented industry and it includes the site for the Clinch River Breeder Reactor. The company has recently employed as many as 103 with a payroll in excess of one million dollars. Currently there are-68 employees and this number will be further reduced as current con-tracts are completed. The company had fabricated and delivered approxi-

- mately 1800 fuel elements to reactors in the United States and seven foreign countries.

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