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)

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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

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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

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

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Commissioner Kennedy H. R. Myers, HCEE o

L. V. Gossick, EDO K. R. Chapman, NMSS 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.;

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

PRELIMINAR'_* NOTIFICATION

, Z[ s /.' N f 9806190033 770303 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

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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-ested in'the company and who have the financs.a1 resources to meet the new o

requirements. The other factor, declining sales, can be attributed to

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

U. S. Nucicar, Inc.

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P_ress Release

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U. S. Nuclear,'Inc._

l Press Release 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

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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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