CAVENDISH NUCLEAR ACQUIRES MAGNOX AND RSRL COMPANIES

Cavendish Nuclear today consolidated its position as the UK’s leading nuclear site management company when it completed the acquisition of Magnox Ltd and Research Reactor Sites Restoration Ltd in a joint venture with Fluor Corporation.

Cavendish Fluor Partnership becomes the new parent body organisation of both companies, which are responsible for 12 nuclear sites in the UK.

Senior managers from Cavendish Nuclear and Fluor will lead both companies and deliver the 12 sites to an agreed and defined point for each (either interim end state or into care and maintenance).

The sites are owned by the Nuclear Decommissioning Authority, which tendered for a new parent body organisation to deliver its clean-up mission.

Cavendish Fluor Partnership’s successful tender is expected to yield savings in excess of £1.5bn for the Nuclear Decommissioning Authority over the 14-year duration of the contract.

“The Cavendish Fluor Partnership brings together a world-class team with unrivalled capability; with proven expertise in both international decommissioning and nuclear site management,” said CFP chairman Kevin Thomas.

“We are looking forward to working closely with the NDA and the sites to deliver this extensive decommissioning programme, safely, on schedule and within budget. By combining our breadth of experience and utilising both proven and innovative solutions, we will deliver significant savings to the UK taxpayer.”

Baroness Verma, Parliamentary Under Secretary of State for the Department of Energy & Climate Change, said: “These sites led the world in developing nuclear energy for the citizens of the UK. Today marks an important milestone in the long-term environmental restoration programme for the first generation of nuclear sites in the UK.”

NDA Chief Executive John Clarke said: “Today is a significant achievement for the NDA.  By introducing a fundamentally different contract, based upon a clear understanding of the scope of work to be delivered across 12 sites over 14 years, we have been able to generate real competitive tension during the competition process.  We are delighted that our approach looks set to deliver a reduction in decommissioning costs of more than £1.5 billion.”

The share transfer and formal contract award today follows the NDA’s announcement of CFP as the preferred bidder on 31st March, and subsequent five month transition period.  This has involved a major programme to conduct a seamless handover from two PBOs to a new one – including the introduction of the new management team to the SLC management and workforce, and stakeholder engagement, as well as the completion of ‘due diligence’ on the site Lifetime Plans – all with minimal impact on the existing teams and continuity of work taking place at the 12 sites.

CFP brings in a team of more than 30 senior executives from their parent organisations Cavendish Nuclear and Fluor Corporation, to commence introduction of the new programme of work over an initial 12 month period.

CFP’s strategy for the 12 sites is characterised by a number of key features.  Among these is to undertake the work safely (in line with the two partners’ strong track records in safe delivery across complex programmes) and at minimum possible cost, as well as implementing an optimised schedule and programmised approach, driven by ten programmes or projects that collectively deliver the mission.  Technical innovation is also a feature, drawing and building on experience and proven techniques and technologies.

Kenny Douglas, Cavendish Fluor Partnership Managing Director, said: “After an intensive transition period, we are delighted to be in contract to implement our delivery plan.  Cavendish Nuclear and Fluor have strong track records of delivering enhanced value to their customers at sites across the UK and in the United States, and we look forward to applying our experience and expertise to the 12 Magnox and RSRL sites.  Crucially, we will be seeking to standardise the processes and approach taken and to maximise learning across all locations, integrating the approach and programmes across all the sites, while delivering locally.  Every aspect of delivery will be looked at over the period of the contract to ensure taxpayers’ money is spent as effectively as possible.”

Magnox Ltd operates the following sites:  Berkeley, Bradwell, Chapelcross, Dungeness, Hunterston A, Hinkley Point A, Oldbury, Sizewell A, Trawsfynydd and Wylfa. www.magnoxsites.com

Research Sites Restoration Ltd operates Harwell and Winfrith research facilities: www.research-sites.com