CBI Receives Nuclear Decommission Contract - Analyst Blog

Yesterday, Chicago Bridge & Iron ( CBI ) announced that it has received a contract valued at $35 million from the U.S. Army Corps of Engineers, Baltimore District. The scope of the contract requires CBI to decommission, dismantle and dispose of the MH-1A nuclear reactor, installed on the STURGIS barge.

The reactor, which was last operated in Jul 1976, has already been de-fueled, decontaminated and sealed and is currently anchored at the James River Reserve Fleet. Prior to it being shut down, the nuclear reactor was primarily used for electricity generation.

CBI has a proven track record of successfully managing wastes of all types, including radioactive, mixed, hazardous and sanitary. The company's primary clients in this segment are federal, state and local regulators who ensure safety and compliance in the handling, processing, treating, transporting and disposal of these wastes. Prior to this, CBI has disposed millions of tons of radioactive wastes from several U.S. Department of Energy nuclear weapons sites.

The nuclear plant vessel MH-1A - STURGIS will be relocated to Galveston, TX, by Sep 2014, for decommissioning, per the plan. After the radioactive waste materials are disposed, the vessel will be transported to Brownsville, TX, for disposal or recycling as scrap using standard ship breaking methods.

The Nuclear Regulatory Commission has strict rules governing nuclear power plant decommissioning, involving cleanup of radioactively contaminated plant systems and structures, and removal of the radioactive fuel. All companies looking to dispose their radioactive wastes have to strictly adhere to the rules.

According to World Nuclear Association, to date, about 100 mines, more than 100 commercial power reactors, 46 experimental or prototype reactors, over 250 research reactors and a number of fuel cycle facilities have been retired from operation. Some of these have been fully dismantled.

CBI is a comprehensive energy infrastructure company and a major provider of government services. CBI provides a wide range of services including design, engineering, construction, fabrication, maintenance and environmental services.

CBI currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the sector include MasTech Inc. ( MTZ ) having a Zacks Rank #1 (Strong Buy), India Globalization Capital, Inc ( IGC ) . and Quanta Services Inc . ( PWR ), both having a Zacks Rank #2 (Buy).

CHICAGO BRIDGE (CBI): Free Stock Analysis Report


MASTEC INC (MTZ): Free Stock Analysis Report

QUANTA SERVICES (PWR): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics


Latest Markets Videos


    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at

    Learn More