BATON ROUGE, La.--(BUSINESS WIRE)--The Shaw Group Inc. (NYSE: SGR) today announced that Shaw and Westinghouse Electric Company, its AP1000 Consortium partner, have signed definitive contracts with State Nuclear Power Technology Company of China (SNPTC), Sanmen Nuclear Power Company, Shandong Nuclear Power Company Ltd., and China National Technical Import & Export Corporation (CNTIC) to provide four AP1000 nuclear power plants in China. Shaw will provide engineering, procurement, commissioning, information management and project management services for the four unit construction program. Shaw has previously announced the addition of approximately $700 million for this program to its backlog of work. Specific terms of the contracts were not disclosed.
The comprehensive, definitive contracts signed today follow the selection of the Westinghouse/Shaw AP1000 Consortium to build the first four nuclear power plants in China’s nuclear expansion program as originally announced in December 2006. Based on framework agreements signed in March of this year, preliminary design, engineering and long lead time procurement work is already underway. The four plants are to be constructed in pairs on China's eastern coast at Sanmen in Zhejiang province and Haiyang in Shandong province. Construction is expected to begin in 2009, with the first plant in Sanmen to begin operations in late 2013. The remaining three plants are expected to come on line in 2014 and 2015.
J.M. Bernhard, Jr., chairman, president and chief executive officer of Shaw, said, “These historic contracts signed today will result in delivery of clean, safe, reliable and economical baseload generation for China. We are excited to lead the nuclear renaissance with our partner, Westinghouse, whose advanced, third generation AP1000 technology clearly has world-recognized benefits for utilities and consumers alike. With this four-unit AP1000 program underway, our nuclear project teams are able to leverage valuable experience as new build nuclear programs in the United States continue to move forward.”
Richard F. Gill, president of Shaw’s Power Group, stated, “We are extremely pleased to finalize these definitive contracts for four AP1000 units with SNPTC, Sanmen Nuclear Power Company, Shandong Nuclear Power Company and CNTIC. It has been a pleasure working with these clients through the planning and contracting process and now we are ready to deliver this significant AP1000 program.”
Westinghouse, a group company of Toshiba Corporation, is the world's pioneering nuclear power company and a leading supplier of nuclear plant products and technologies to utilities throughout the world. Westinghouse, with Shaw, supplied the world's first pressurized water reactor in 1957 in Shippingport, Pa. Today, Westinghouse technology is the basis for approximately one-half of the world’s operating nuclear plants, including 60 percent of those in the United States.
The Shaw Group Inc. is a leading global provider of technology, engineering, procurement, construction, maintenance, fabrication, manufacturing, consulting, remediation, and facilities management services for government and private sector clients in the energy, chemical, environmental, infrastructure, and emergency response markets. A Fortune 500 company with nearly $5 billion in annual revenues, Shaw is headquartered in Baton Rouge, Louisiana and employs approximately 25,000 people at its offices and operations in North America, South America, Europe, the Middle East and the Asia-Pacific region. For further information, please visit Shaw's website at www.shawgrp.com.
The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for certain forward-looking statements. The statements contained herein that are not historical facts (including without limitation statements to the effect that the Company or its management “believes,” “expects,” “anticipates,” “plans,” or other similar expressions) and statements related to revenues, earnings, backlog, or other financial information or results are forward-looking statements based on the Company’s current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting the Company will be those anticipated by the Company. These forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions and are subject to change based upon various factors. Should one or more of such risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in the forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. A description of some of the risks and uncertainties that could cause actual results to differ materially from such forward-looking statements can be found in the Company’s reports and registration statements filed with the Securities and Exchange Commission, including its Form 10-K and Form 10-Q reports, and on the Company's web-site under the heading "Forward-Looking Statements”. These documents are also available from the Securities and Exchange Commission or from the Investor Relations department of Shaw. For more information on the company and announcements it makes from time to time on a regional basis visit our web site at www.shawgrp.com.