BATON ROUGE, La.--(BUSINESS WIRE)--May 27, 2008--The Shaw Group Inc. (NYSE:SGR) announced today that the Nuclear Division of its Power Group and consortium partner Westinghouse Electric Company have been awarded an engineering, procurement and construction (EPC) contract for two AP1000(TM) nuclear power units by South Carolina Electric & Gas Company, principal subsidiary of SCANA Corporation (NYSE:SCG), and the South Carolina Public Service Authority (Santee Cooper), a state-owned electric and water utility in South Carolina.
The two 1,117-megawatt units, which require federal and state regulatory approval prior to construction, will be located at the existing V.C. Summer Nuclear Station near Jenkinsville, S.C. Known as V.C. Summer 2 and 3, the new units are scheduled for completion in 2016 and 2019, respectively. The value of Shaw's contract related to a limited notice to proceed is undisclosed and will be added to the company's backlog of unfilled orders in the fiscal third quarter of 2008. The balance of the contract will be added to backlog when released by South Carolina Electric & Gas and Santee Cooper.
"The term 'nuclear renaissance' has evolved from concept to reality in the United States thanks to bold and far-sighted companies like South Carolina Electric & Gas and Santee Cooper, which recognize the need for the safe, efficient and emission-free baseload generation that the AP1000 can provide," said J.M. Bernhard Jr., Shaw's chairman, president and chief executive officer.
"V.C. Summer 2 and 3 will be among the first new nuclear units designed and built in this country in decades, and the employees of Shaw's Nuclear Division are proud that they have been selected to help drive the rebirth of this vital technology in the United States," Bernhard added.
A combined construction and operating license (COL) application for the two units was submitted to the U.S. Nuclear Regulatory Commission on March 31, 2008, and approval of the COL is expected to occur in 2011. Construction of the nuclear island for the first unit would begin soon thereafter, subject to the approval of the South Carolina Public Service Commission.
The EPC contract for V.C. Summer Units 2 and 3 is the second EPC contract for new nuclear power generation awarded to Shaw and Westinghouse in the past two months. In April, Georgia Power awarded the companies the first EPC contract for a new nuclear power plant in the United States in more than 30 years.
Shaw is currently providing engineering, procurement, commissioning, information management and project management services for four AP1000 nuclear plants being built in China at Haiyang in Shandong province and Sanmen in Zhejiang province.
The Shaw Group Inc., a 20 percent owner of Westinghouse Electric Company, 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, chemicals, environmental, infrastructure and emergency response markets. A Fortune 500 company with fiscal 2008 revenues expected to exceed $7 billion, Shaw is headquartered in Baton Rouge, La., and employs approximately 27,000 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 Web site 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 BLOCKED EXPRESSION 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.
CONTACT: The Shaw Group Inc.
Financial Contact:
Chris Sammons, 225-932-2546
Media Contact:
Sean Clancy, 225-987-7129
SOURCE: The Shaw Group Inc.