McDermott Unit Wins Nuclear Deal

The Babcock & Wilcox Co. – a subsidiary of energy-focused engineering and construction firm McDermott International Inc. (MDR - Analyst Report) – announced the receipt of a nuclear contract from leading power supplier Energy Northwest. As per the deal, Babcock & Wilcox will support a condenser replacement project at Energy Northwest’s Columbia Generating Station (a nuclear power station) in Richland, Washington. The project is scheduled during a 2011 outage at the plant.
 
During the outage, Babcock & Wilcox will take away the existing waterboxes and copper-nickel tube bundles, following which they will be replaced by new waterboxes and titanium tube bundles. Additionally, Babcock & Wilcox will carry out piping rerouting and reconnections to the condenser. Finally, after the completion of the outage, Babcock & Wilcox will restore the interferences and inspect the final vacuum test of the condenser shell.
 
Babcock & Wilcox specializes in construction, environmental controls and boilers for the power plant industry, as well as manufactures nuclear components. It described the award as a positive development for the unit’s focus on commercial nuclear construction and the growing nuclear service business segment.      
 
Incorporated in 1959, Houston, Texas-based McDermott International Inc. is an energy-focused leading global engineering and construction company with specialty manufacturing and service capabilities. The firm provides a diverse range of products and services to customers in the energy and power industries, including utilities and other power generators, major and national oil companies, and the U.S. Government.
 
McDermott recently announced plans to separate its power generation business from its offshore oil and gas services business, thereby creating two independent, publicly traded companies. As part of this effort, McDermott will spin-off The Babcock & Wilcox Co.
 
The remaining business will take on the name of McDermott's J. Ray McDermott S.A. (JRMSA) operating subsidiary and will trade under McDermott International's existing ticker symbol, MDR. J. Ray McDermott will stand alone as an engineering, construction and installation company, focused in the offshore oil and gas exploration and production market.

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