Building materials supply giant AEG, along with its subsidiary ABB, announced a major expansion of its manufacturing capacity in the US to accommodate the increased demand for nuclear fuel.
The new plant, in the New York metropolitan area, will create an additional 5,000 manufacturing jobs for American workers.
This is in addition to a total of approximately 9,000 jobs at ABB’s manufacturing facility in California.
AEG’s manufacturing operations in the United States employ nearly 8 million workers, with an average annual payroll of $110,000.
As part of the agreement, ABB will also increase its investment in the North American and international nuclear fuel fabrication plants, the company announced.
The company also said it would continue to invest in its core energy business, as well as expand its nuclear fuel manufacturing capacity.
A spokesperson for AEG said the company has seen the need to ramp up production in nuclear fuel production.
“AEG is proud to announce that the company’s existing facilities are expanding to support the needs of its clients in the nuclear fuel supply chain,” the spokesperson said in a statement.
“As our clients demand for the fuel in the supply chain continues to increase, AEG has increased its investment and is now fully capable of supporting the demand for our products in the fuel supply sector.”
AEG previously had a plant in Colorado and a plant near the San Luis Obispo River in California, and it also owns a plant that is the third largest in the world.
The plant will allow AEG to build an additional 3,000 fuel-grade concrete and steel buildings in the U.S. in addition for its domestic manufacturing and shipping business.
The U.K.-based company also plans to open a new facility in North Carolina, and also plans a new plant in South Carolina.
“The AEG plant in North Dakota, along the Missouri River, will increase AEG capacity to manufacture fuel rods and other components for the nuclear power industry,” the company said.
The statement from ABB came as part of a partnership with the government and the private sector to expand the nuclear plant, which is currently located in Texas.
The US Department of Energy, the Department of Defense, and the US Environmental Protection Agency signed a memorandum of understanding with AEG in September 2017 to help fund the construction of the facility, the White House said.
“This deal is a win-win for the American people and for the economy,” President Donald Trump said in announcing the agreement.
“We will create tens of thousands of jobs in the industry, and we will also make billions in investment that will benefit our economy and our citizens.”
AIG and ABB both announced the expansion in the fall of 2018.
The announcement comes as the United Nations is expected to announce a plan on Tuesday to set up a global nuclear energy cooperation that will include nuclear fuel suppliers, the Energy Information Administration said.