Download honeywell and us nuclear regulatory commission reach agreement

News Release
Peter Dalpe
973-455-4908
[email protected]
HONEYWELL AND U.S. NUCLEAR REGULATORY COMMISSION
REACH AGREEMENT ON NECESSARY UPGRADES TO METROPOLIS
NUCLEAR CONVERSION FACILITY
NRC issues Confirmatory Order providing clarity on type of upgrades,
allows company planning work to continue
MORRIS TOWNSHIP, N.J. -- Oct. 16, 2012 -- Honeywell (NYSE: HON) announced today
that it is has reached an agreement with the U.S. Nuclear Regulatory Commission (NRC) on necessary
upgrades to the company’s Metropolis nuclear conversion facility to ensure it could withstand extreme
natural disasters such as strong earthquakes and tornados.
“This agreement with the NRC gives Honeywell clarity about the type and extent of necessary
upgrades to the facility, allowing us to continue the scoping, planning and design work,” said Larry
Smith, plant manager for the facility. “Thanks to this agreement, we are closer to being able to estimate
the required investment and schedule of work needed for the facility to resume full production.”
The facility announced in July that it would evaluate a series of upgrades to its Metropolis
Works nuclear conversion facility following an NRC inspection that focused on preparedness for
extreme natural disasters. Honeywell committed to the NRC in July that it would not restart production
at the facility until reaching agreement with the Commission on the necessary upgrade projects and
timing.
The NRC inspection of Metropolis Works was part of a comprehensive assessment it is
conducting of all U.S. nuclear-related facilities in the wake of last year’s Fukushima disaster in Japan.
Since July, the company and the NRC have had ongoing discussions to determine the
modifications required to ensure the facility would receive permission to resume production. Those
discussions resulted in an agreement this week and the issuance of a Confirmatory Order. The NRC, in
its Confirmatory Order, also decided not to issue any Notice of Violations or civil penalties against the
facility as a result of the inspection.
Based on the parameters defined within the NRC’s order, the facility will continue its scoping,
planning and design work, which is the first step in the company’s defined stage-gate process for
evaluating and funding major capital projects.
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Based on scoping and other work done to date, completion of upgrades to the Metropolis
Works facility could take approximately nine to 12 months. An exact timeline for a restart of
operations has not been determined.
First opened in 1958, Honeywell Metropolis Works provides services to convert uranium oxide
to uranium hexafluoride (UF6). This product is then further processed by other service providers into
fuel for civilian nuclear powerplants.
Honeywell (www.honeywell.com) is a Fortune 100 diversified technology and manufacturing leader, serving
customers worldwide with aerospace products and services; control technologies for buildings, homes and
industry; turbochargers; and performance materials. Based in Morris Township, N.J., Honeywell's shares are
traded on the New York, London, and Chicago Stock Exchanges. For more news and information on
Honeywell, please visit www.honeywellnow.com.
This release contains certain statements that may be deemed “forward-looking statements” within the meaning of Section
21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, that address activities,
events or developments that we or our management intends, expects, projects, believes or anticipates will or may occur in
the future are forward-looking statements. Such statements are based upon certain assumptions and assessments made by
our management in light of their experience and their perception of historical trends, current economic and industry
conditions, expected future developments and other factors they believe to be appropriate. The forward-looking statements
included in this release are also subject to a number of material risks and uncertainties, including but not limited to
economic, competitive, governmental, and technological factors affecting our operations, markets, products, services and
prices. Such forward-looking statements are not guarantees of future performance, and actual results, developments and
business decisions may differ from those envisaged by such forward-looking statements.
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