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Areva announced Tuesday that it plans to move all nuclear fuel-making operations to its Richland plant, which will add 50 jobs to the facility and allay fears generated last year that the company might leave the Tri-Cities.
The multinational company said it will end fuel production in Lynchburg, Va., and produce fuel assemblies only in Richland, where it has operated for decades. The transition will begin next spring.
Judy Thomas, Areva spokeswoman in Richland, said 150 employees in Lynchburg who are affected by the decision will be given first shot at the 50 positions.
Areva makes fuel for nuclear power plants, though it does not currently supply the Columbia Generating Station plant, a boiling-water reactor outside Richland.
The company and its predecessors have operated in the Tri-Cities for 40 years, making more than 44,000 fuel assemblies in that time. The Richland operation employs about 700 people, 400 of whom work in the fuel manufacturing wing.
The 50 new positions will be added to the facility's rod and bundling operation, where uranium fuel pellets are stacked in long, skinny rods that are bundled to form nuclear fuel assemblies.
The Richland facility produces fuel assemblies for boiling-water reactors, while the Lynchburg facility produces fuel assemblies for pressurized-water reactors. Once the consolidation is complete, Richland will produce fuel assemblies for both types of reactors.
About $4 million in capital improvements will be needed before Areva's Richland facility can produce both types of fuel, said Site Manager Chuck Perkins. He said the company made the consolidation decision last week.
Carl Adrian, chief executive officer of the Tri-City Development Council, said Areva's decision to consolidate its fuel production operation in Richland illustrates the company's commitment to remaining in the Tri-Cities.
There were fears Areva would leave the Tri-Cities after it announced in May 2008 that it would build a new uranium enrichment plant in Idaho instead of Richland.
Many at the time felt the Tri-Cities missed out on the $2 billion enrichment facility because of a lack of recruitment efforts by the state, which were detailed in a Tri-City Herald investigation.
As the Herald reported, Gov. Chris Gregoire was the focal point of the criticism after Areva decided to go to Idaho. Critics said she failed to play a strong enough role in recruiting Areva to Washington.
Adrian, however, said that was not the case this time around. He said state officials "made it very clear to Areva" how valuable it is to Washington.
"This was a classic example of a very strong team that was successful," he said.
Adrian said TRIDEC began working with Areva months ago when the company first considered consolidating its fuel manufacturing.
"I had the sense this was clearly not a decision that had already been made," Adrian said of Areva considering Lynchburg and Richland.
Adrian said Areva weighed operational costs, involvement from all levels of government, and community and environmental concerns before making a decision.
"This is a very good statement about Areva's commitment to the Tri-Cities," he said.
Gov. Gregoire issued a statement Tuesday saying, "This is great news for the Tri-Cities area and a testament to our commitment to create an even more friendly business environment in the state of Washington. My staff and I, as well as the state's Department of Commerce, have been working closely with Areva for many months to ensure the company grows and expands here."
State Rep. Larry Haler, R-Richland, said, "This decision demonstrates how our regional economy and families in Washington can benefit when business and government leaders work together to promote expansion of reliable, clean, carbonless energy sources, including nuclear power."
And Congressman Doc Hastings, R-Wash., said, "The addition of these good-paying jobs to the Tri-Cities community is great news for our economy."
Areva's Idaho plant is years away from operating, and Perkins said it's highly unlikely Areva would move its Richland operations to Idaho in the future.
He explained that the Idaho plant will produce a raw material, while the Richland plant produces a finished product. "They're just not related," he said.
The Idaho plant will eventually provide the Richland facility with the material it uses to produce fuel assemblies. Perkins said he hates to say "never," but emphasized that the chances of the Richland facility moving to Idaho are low.
Areva said about 150 of the more than 300 employees at the Virginia facility will either be transferred within the facility, transferred to another facility or laid off with a severance package.
w Drew Foster: 585-7207; dfoster@tricityherald.com
