Announced today – AREVA and USEC Inc. have signed an agreement to end their 7-year litigation concerning French enrichment services in the U.S. It also addresses USEC’s dumping allegations, which AREVA has always denied. This agreement allows AREVA to recover a sizable portion of the provisional duties deposited with the US Customs Service in connection with the dumping claim and all duties paid in connection with the additional claim of unfair subsidy practices. In addition, USEC will provide enrichment services for AREVA in 2009 and 2010. This is a win-win agreement for both parties.
Dumping is selling below the price considered at fair value. The production cost calculated by the US Department of Commerce for AREVA was above our actual cost. Accordingly, the DOC concluded that dumping had occurred.
The other claim was that AREVA received subsidies from the French state. AREVA demonstrated that this was not true. This particular case is now closed, and the duties deposited with the US Customs Services will be returned to AREVA.
As a major player in enrichment services for the U.S., AREVA is expanding its presence by filing a license application to build an enrichment facility in Idaho. The project, scheduled for completion in 2014, will bring enrichment services closer to AREVA’s U.S. customers, as well as more than $2 billion of investment in the state.