Work on Newport News nuclear manufacturing plant halted

NEWPORT NEWS

Construction is being halted at a planned nuclear manufacturing plant in Newport News.

Areva Newport News says it is shelving the project due to unfavorable market conditions and uncertainty over U.S. energy policy.

Plans for the 300,000-square-foot facility were first announced in 2008. At the time, the project was expected to create 540 jobs and result in a $363 million capital investment. The Huntington Ingalls Industries and Areva joint venture broke ground in July 2009.

"This pause only has to do with the construction portion of the joint venture," said Jarrett Adams, an Areva spokesman. "Long term, I want to emphasize that we're still fully committed to this project and completing this project."

For now, there's essentially no work at the site along the banks of the James River.

Newport News Development Director Florence Kingston told the Daily Press that Areva officials told her their goal was to reboot in about 18 months.

Adams said, if and when conditions improve, it would be at least two years from when construction resumes to when the building could become operational.

"We're prepared so that if market conditions change, we can start up construction again rather quickly," Adams said.

Areva said last year it was slowing the timetable of the facility because of the sluggish economy and a slower-than-expected process of federal approval of new nuclear power plants. It had hoped to have the plant operational by 2013.