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Candu Energy to acquire AECL’s commercial reactor division

Candu Energy, a wholly-owned subsidiary of Montreal-based engineering firm SNC-Lavalin Group Inc. (TSX: SNC), announced that it has agreed with the Government of Canada to acquire certain assets of Atomic Energy of Canada's (AECL) commercial reactor division for a purchase price of $15 million and royalty payments from future new build and life extension projects.

Approximately 1,200 employees are expected to be transitioned from AECL to Candu Energy.

AECL is the Crown Corporation responsible for managing Canada's nuclear energy research and development program. The commercial reactor division began developing the CANDU technology in the 1950s, and has built 34 reactors in seven countries. It has made a significant contribution to a key Canadian sector but in its current form, AECL was judged to be no longer sustainable. The privatization of AECL is an important turning point to allow for a new competitive business model, following years of challenges faced by AECL, and is an endeavour to keep alive the Canadian nuclear industry.

The successful support and development of this technology is critical to sustaining Canada's nuclear industry, which currently employs more than 30,000 workers in 150 companies across Canada. For Candu Energy, the purchase of certain AECL assets means committing to preserving a homegrown, proven technology with good potential. Candu Energy will focus on the new build, life extension and services product lines.



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