Dec 8 2005
Brush Wellman Inc. has announced that it has received a $9 million contract award under the Department of Defense's (DOD) Defense Production Act, Title III Program. The contract is for the engineering and design of a new facility for the production of primary beryllium, the feedstock material used to produce beryllium metal products.
The awarding of the contract represents a key step toward the return of a sustainable domestic supply of primary beryllium, a material critical to the nation's strategic interests. The nation's only primary beryllium production facility, operated by Brush Wellman in Elmore, Ohio, was closed in 2000 due to several factors, including equipment obsolescence at the facility and the availability of a large supply of primary beryllium from the government stockpile.
The new facility, to be owned and operated by Brush Wellman, will be located at an existing plant site in either Elmore or Delta, Utah. The total cost of the facility is expected to range from $40 to $60 million which will be determined through the design process. The design phase will also identify the preferred location for the new facility.
In an innovative public-private cost-sharing partnership under the Title III program, Brush Wellman will provide technology, land, buildings and an ongoing operation for the facility, while the government will fund engineering, design and equipment. The first phase of the contract will involve engineering and design work and is expected to be completed over the next two years. The second phase will involve construction and start up of the facility and is expected to require an additional two to three years following completion of phase one. Funding for the second phase will require additional Title III approval.
The Defense Production Act is the primary legislation for ensuring domestic availability of industrial resources and critical technology items essential for national defense. The Title III Program provides a vehicle to create, maintain, modernize or expand domestic production capability for technology items, components and resources essential for national defense and for which there is insufficient production capacity to meet those needs. Title III stimulates investments in key production resources to increase the supply, improve the quality and reduce the cost of advanced technology and reduces U.S. dependency on foreign sources of supply for critical materials.
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