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BWXT plans C$80 million expansion in Ontario for nuclear manufacturing

EditorEmilio Ghigini
Published 19/04/2024, 11:58 pm

CAMBRIDGE, Ontario - BWX Technologies, Inc. (NYSE: NYSE:BWXT), a major player in North America's nuclear manufacturing sector, announced its plan to invest C$80 million to expand its Cambridge facility. This move is expected to create over 200 new jobs and cater to the growing demand for clean nuclear energy.

The investment will enlarge the plant's footprint by 25 percent, bringing it to 280,000 square feet. The expansion includes C$50 million for construction and an additional C$30 million for advanced manufacturing equipment. The company designs and manufactures large nuclear components and aims to boost capacity and productivity with this investment.

John MacQuarrie, president of Commercial Operations at BWXT, highlighted the timing of the expansion, noting its role in supporting large clean nuclear energy projects and addressing climate change and energy security concerns.

Construction is slated to start in the third quarter of 2024, with completion expected by mid-2026. Operations at the current facility will continue uninterrupted during this period.

Additionally, BWXT's Projects and Field Services business will move to a new 150,000 square foot facility in Kitchener, Ontario, which will serve as a center for training and technology development.

Statements from Mike Rencheck, CEO of Bruce Power, and Ken Hartwick, CEO of Ontario Power Generation (OPG), underscored the nuclear industry's contributions to Ontario's economy through job creation and support for a decarbonized energy grid.

Ontario Premier Doug Ford (NYSE:F) and Energy Minister Todd Smith expressed enthusiasm for the expansion, emphasizing its role in Ontario's leadership in nuclear energy and its benefits to the local economy and clean energy supply.

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BWXT's expansion comes amid a resurgence in Canada's nuclear industry, with recent government support for new nuclear projects, including small modular reactors (SMRs). Rex Geveden, BWXT's president and CEO, pointed to the growing global government interest in nuclear power as a driving force behind the expansion.

The Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources, praised the expansion for its contribution to the fight against climate change and job creation in Ontario. This expansion reinforces BWXT's longstanding presence in Canada and its commitment to delivering nuclear components for clean and reliable electricity.

The information for this article is based on a press release statement.

InvestingPro Insights

As BWX Technologies, Inc. (NYSE: BWXT) bolsters its manufacturing capabilities with a significant expansion in Ontario, the company's financial health and stock performance offer insights into its market position. According to InvestingPro data, BWXT currently holds a market capitalization of $8.57 billion, reflecting its substantial presence in the nuclear sector.

The company's commitment to shareholder returns is evidenced by its consistent dividend growth, with a notable increase of 9.09% in dividends over the last twelve months as of Q1 2023. This trend is further underscored by an InvestingPro Tip highlighting BWXT's track record of raising its dividend for 8 consecutive years, demonstrating a reliable income stream for investors.

Moreover, the stock's recent performance paints a picture of robust growth, with a 17.82% price total return over the last three months and an impressive 47.69% over the past year. This is complemented by another InvestingPro Tip indicating that 4 analysts have revised their earnings estimates upwards for the upcoming period, suggesting a positive outlook on the company's financial prospects.

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Investors and potential shareholders considering BWXT can find additional insights and tips on InvestingPro, with a total of 15 InvestingPro Tips available for the company. For those seeking to delve deeper into BWXT's financial metrics and stock performance, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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