Babcock & Wilcox receives $130 million defense contract

The Babcock & Wilcox Company received a $130 million contract to provide parts to U.S. Navy nuclear submarines, the company announced Wednesday.

B&W Nuclear Operations Group will perform the contract work in Lynchburg but no new employees will be hired at this time, Spokeswoman Carla Parks Wooley said.

Babcock & Wilcox has about 2,400 employees in Lynchburg.

The Nuclear Operations Group will provide nuclear reactor components to the Navy’s Virginia-class submarines. Work will begin immediately.

“The work will be executed in our Lynchburg facility and highlights the technologically advanced capabilities B&W utilizes to provide high value-added products in support of U.S. defense programs,” said Peyton S. Baker, president of B&W NOG.

The new contract is similar to ones the company received in the past, Wooley said.

In February, the Nuclear Operations Group announced it received the second order of a continuing $2 billion contract to make nuclear components for defense programs. The order was worth $600 million. In November, the company announced its subsidiary, Nuclear Fuel Services, received a nearly $115 million contract to provide nuclear fuel for the U.S. Naval Nuclear Propulsion Program.

The Nuclear Operations Group is headquartered in Lynchburg, but has locations in Ohio, Tennessee and Indiana.