Westinghouse Acquires CB&I Nuclear Construction and Integrated Services Subsidiary
TOKYO-Toshiba Corporation (TOKYO: 6502) today announced that Westinghouse Electric Company, LLC, a Toshiba Group company, has signed an agreement with CB&I for the acquisition of CB&I Stone & Webster Inc. (CB&I S&W), CB&I’s nuclear construction and integrated services businesses. The CB&I Stone & Webster business will become a single, wholly owned Westinghouse subsidiary, with a target date of the end of 2015.
Westinghouse is currently constructing eight AP1000™, pressurized water reactor (PWR), four units in the U.S. and four in China, with CB&I S&W as its consortium partner. Two projects are underway in the U.S., at the Vogtle Electric Generating Plant operated by Southern Co., and the V.C. Summer Nuclear Generating Station operated by SCANA Corporation. Both projects are for two reactors. With the acquisition of CB&I S&W, construction work carried out by CB&I S&W will come under Westinghouse’s direct control, including work on the reactors in the U.S.
By acquiring CB&I S&W, Westinghouse can integrate end-to-end management and execution of all aspects of U.S. nuclear plant projects.
Alongside acquiring S&W, Westinghouse has reached agreements with Southern Co. and SCANA Corporation to resolve all outstanding claims and disputes including existing litigation with respect of the U.S. projects. The agreements also include price and schedule adjustments. Westinghouse will continue to cooperate with the project owners on the current construction work to promote AP1000™ projects in the U.S.
Westinghouse is in negotiations with Fluor Corporation, which will be supporting Westinghouse in the construction of the two U.S. projects. Fluor will take on construction project management as a subcontractor to Westinghouse. S&W’s construction workers will be transferred to Fluor.
Beyond the focus of today’s new-plant projects, the agreement will support Westinghouse’s growth in decontamination, decommissioning and remediation services; enhance the company’s major nuclear project management and environmental services offerings; and add to its extensive innovation-driven engineering expertise. All of these businesses will reside in a new Westinghouse subsidiary, which also will house a new government services business that is under development.
Westinghouse has a substantial record in constructing nuclear power plants around the world, and is also the world’s largest manufacturer of nuclear fuel; its PWR technology is employed in approximately 50% of nuclear power plants now in operation. Westinghouse will further strengthen its leading positon in nuclear power business with the acquisition of S&W, which also has plant decontamination, decommissioning and remediation services in its business portfolio.
- CB&I acquired Shaw Group, a US major engineering company and parent to S&W, in February 2013.