THE WHITE HOUSE

Office of the Press Secretary

Statement by the Press Secretary

Today, the President approved implementation of the privatization plan for the U.S. Enrichment Corporation (USEC), a government-owned corporation formed in 1992. USEC produces enriched uranium for use as commercial nuclear reactor fuel. His approval for implementing the USEC privatization plan is yet another example of the Administration's commitment to improving how government works: the consensus is that USEC's activities will be better managed in the private sector. Given the approval today, USEC will be working with the Treasury Department and other relevant government agencies over the next several months to design and implement the details of the final privatization transaction. That transaction must be approved by the Secretary of the Treasury.

With utility customers in 14 countries, USEC's operations involve approximately 5,000 people. Headquartered in Bethesda, Maryland, USEC manages plants in Kentucky and Ohio, and is developing an advanced laser enrichment technology in California. USEC also serves as the U.S. Executive Agent for implementation of the historic U.S.-Russian agreement to convert highly-enriched uranium from Russian nuclear weapons into civilian reactor fuel. Following privatization, the U.S. Government will continue to exercise oversight of USEC's activities affecting matters of national security, including its role as executive agent in the agreement with the Russians.

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