Babcock And Wilcox Shares Statement On Closing

BABCOCK STATEMENT ON CLOSING

Babcock & Wilcox yesterday informed employees of its West Point, Miss. factory and offices of management’s recommendation that the company cease manufacturing operations in West Point no later than the end of the third quarter of 2016. This was a difficult decision, especially as our West Point facility has been an important part of our operations for more than 60 years.

This recommendation was reached after an extensive analysis of B&W’s manufacturing operations, in order to make it more efficient and competitive. A variety of market and economic factors, including increased competition from other global suppliers and federal energy regulations that have negatively impacted coal and other fossil fuels, contributed to B&W’s decision to consolidate operations and move some businesses to lower cost manufacturing facilities.

B&W manufactures industrial and commercial package boilers, boiler tubes and boiler pressure parts in West Point. Management recommends that the majority of this work be relocated to the company’s Monterrey, Mexico facility. We are prepared to engage the local union, Boilermakers Local 903, in negotiations regarding these recommendations.
We intend to continue to maintain a business presence in the West Point area with a staff of about 30 people supporting our package boiler sales and service business.