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Brush Wellman Signs Phase II TIA with DOD for Beryllium Facility (posted 6/25/08)

June 25, 2008
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The agreement is for the construction and startup of the $90.4 million primary beryllium facility at the company’s Elmore, Ohio, location.

Brush Wellman Inc. recently announced that it has signed a Phase II Technology Investment Agreement (TIA) with the U.S. Department of Defense (DOD) for the construction and startup of the $90.4 million primary beryllium facility at the company’s Elmore, Ohio, production facility. The Phase I TIA previously provided for $14 million in engineering and design for the facility.

The primary beryllium facility is being funded by a public-private partnership between Brush Wellman and the U.S. government through the DOD’s Defense Production Act, Title III Program. Under the program, Brush Wellman contributes technology, land, buildings and an ongoing operation for the facility, while the government funds engineering, design and equipment. The new facility will produce primary beryllium, the feedstock material used to produce beryllium metal products.

In total, Brush Wellman’s contribution, including research and development, technology, land, buildings and ongoing operations, is valued at $23.2 million. The building will be financed through taxable revenue bonds issued by the Cleveland-Cuyahoga Port Authority and a research and development loan from the Ohio Department of Development. These total approximately $10.5 million. Additionally, Ottawa County, Ohio, provided tax abatement on new real property improvements and a contribution toward workforce development.

Groundbreaking is expected this summer, and construction is expected to be completed in April 2010. Approximately 25 additional jobs are expected to be created to operate and maintain the facility. A significant number of construction and support positions related to the project will be created outside of Brush Wellman.

The awarding of the contract represents a key step toward maintaining a sustainable domestic supply of primary beryllium, a material critical to the nation’s strategic interests. The Defense Production Act is the primary legislation for ensuring domestic availability of industrial resources and critical technology items essential for national defense. The Title III Program provides a vehicle to create, maintain, modernize or expand domestic production capability for technology items, components and resources essential for national defense and for which there is insufficient production capacity to meet those needs. Title III stimulates investments in key production resources to increase the supply, improve the quality and reduce the cost of advanced technology, and it reduces U.S. dependency on foreign sources of supply for critical materials.

Visit www.brushwellman.com for additional information.

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