Carbon fibre contract for ATK

(ATK) has entered into an agreement with Hexcel Corporation and USEC for the supply of carbon fibre and carbon fibre products. These products will be used for the manufacture of rotor tubes at USEC's American Centrifuge Plant (ACP) in

. The ACP will enrich uranium for commercial nuclear power reactors.

In the manufacturing supply agreement, which runs through 2011, Hexcel will furnish the carbon fibre material and ATK will manufacture the rotor tubes for what will be the largest commercial composite production program in ATK's history.

Under an initial $10m contract, ATK has been engaged in centrifuge technology transfer with USEC and has been demonstrating its manufacturing capabilities at its Clearfield, Utah facility. In May 2007 ATK and USEC entered into a long-term agreement relating to the production of rotor tubes for centrifuge machines for the American Centrifuge Plant.

ATK will manufacture the composite rotor tubes at its manufacturing centre in Rocket Center, West Virginia. ATK will use Hexcel's carbon fibre for the manufacture of these composite products. The rotor tubes will be used in USEC's facility in Ohio, beginning in 2008. When completed, ATK estimates that total revenue from the program may exceed $250m.

USEC is working toward beginning commercial plant operations in late 2009 and having approximately 11,500 machines deployed in 2012, which would provide about 3.8 million separative work units (SWU) of production based on current estimates of machine output and plant availability.

The US Nuclear Regulatory Commission (NRC) issued a construction and operating license for the American Centrifuge Plant in April 2007 and construction officially began in May 2007.