Ceradyne Inc. Invests $14.1 Million for Nuclear Waste Containment Project
July 13 2006 - 7:30AM
Business Wire
Ceradyne, Inc. (Company) (Nasdaq:CRDN) reported that it has
completed two transactions related to its recently announced plans
to enter into the manufacture and marketing of structural neutron
absorbing materials. The Company completed the acquisition of an
86,000 square foot, first-class industrial facility in Chicoutimi,
Quebec, Canada. This facility is currently equipped with a
state-of-the-art 2,750 ton short-stroke aluminum extruder.
Additionally, Ceradyne acquired a boron carbide/aluminum cladding
product line known as Boral(R), as well as associated manufacturing
equipment and inventory, from AAR Manufacturing, Inc., a subsidiary
of AAR Corp. Boral will be used as a neutron absorber in various
nuclear waste containment structures. The Company paid a total of
$14.1 million for the facility, equipment, product line, and
inventory acquired in the two transactions. Joel Moskowitz,
Ceradyne chief executive officer, commented: "Ceradyne's
acquisition of this substantive manufacturing facility and
technology is part of our diversification strategy, while
maintaining our core competencies in advanced technical, primarily
non-oxide, structural ceramics. "We intend to manufacture boron
carbide/aluminum metal matrix composites in our newly-acquired
Canadian facility under an exclusive agreement between Ceradyne and
Alcan Inc. announced June 8, 2006. We project that we will be in
production late this summer, with the first half of 2007 targeted
for full production of these nuclear waste containment materials."
Moskowitz went on to say, "Our new Canadian venture will be under
the leadership of Ceradyne's President of North American
Operations, David Reed." Reed stated, "We will use our boron
carbide powder made in the Company's Kempten, Germany, plant and
shipped to this new Canadian facility. I am very enthused regarding
this new Ceradyne venture. I have appointed Eric Cantin, a
long-term Sequenay, Canada, resident as the Director General of our
recently established Ceradyne Canada operation. Eric has an
extensive background of senior technology management of aluminum
and metal matrix composite structure manufacturing." Ceradyne
develops, manufactures and markets advanced technical ceramic
products and components for defense, industrial, automotive/diesel,
and consumer applications. Additional information about the Company
can be found at www.ceradyne.com. This press release contains
forward-looking statements regarding future events and the future
performance of Ceradyne that involve risks and uncertainties that
could cause actual results to differ materially from those
projected. Words such as "anticipates," "believes," "plans,"
"expects," "intends," "future," and similar expressions are
intended to identify forward-looking statements. These risks and
uncertainties are described in the Company's Annual Report on Form
10-K for the fiscal year ended December 31, 2005, and its Quarterly
Reports on Form 10-Q, as filed with the U.S. Securities and
Exchange Commission.
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