BWX Technologies has signed an agreement and committed $525 million to purchase Kinectrics, a nuclear services company building a first-of-its-kind test facility in Oak Ridge. Both companies operate sites in East Tennessee.
Once the acquisition closes later this year, Kinectrics will operate under the same brand and management team as a subsidiary, BWXT said in its Jan. 7 announcement. BWXT, a major nuclear services company based in Lynchburg, Virginia, owns Nuclear Fuel Services in Erwin, Tennessee.
The high-security Erwin facility manufactures uranium fuel for all U.S. Navy nuclear reactors and converts bomb-grade uranium from the Cold War into fuel for nuclear energy plants. It is the largest employer in Unicoi County, with more than 1,200 employees.
Kinectrics, based in Toronto, provides testing and engineering services to electrical companies around the world. The company purchased 15 acres at the Horizon Center Industrial Park in Oak Ridge in 2023 to build a Helium Test Facility in partnership with advanced nuclear reactor developer X-energy and the U.S. Department of Energy.
The Oak Ridge campus will be a first-of-its-kind testing center for components of the Xe-100, X-energy's high-temperature, gas-cooled reactor. Though X-energy is headquartered in Maryland, Oak Ridge will be home to its testing facility and its fuel production facility through subsidiary TRISO-X.
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BWXT wanted to purchase Kinectrics because of the Canadian company's unique ability to help nuclear companies like X-energy test and analyze special materials, said John MacQuarrie, president of BWXT Commercial Operations.
BWXT, which operated for years as part of the Babcock and Wilcox Company before it spun off in 2015, expects the Kinectrics campus in Oak Ridge to continue development after the acquisition.
"We're very hopeful that that will carry on," MacQuarrie told Knox News in an interview. "Together, we may be able to provide even better support to X-energy."
The acquisition of Kinectrics means BWXT now has a "comprehensive portfolio of end-to-end lifecycle services" for both advanced and traditional nuclear companies, the company said.
Kinectrics, spun off from Ontario Power Technologies in 2000, employs 1,300 engineers and technicians at 20 sites worldwide and generated $300 million in revenue in 2024. Once the sale closes, the workforce of BWXT's commercial unit will nearly double.
The acquisition is part of BWXT's broader expansion in the Canadian nuclear industry, where it invested $60 million at its Ontario facility last year.
How BWXT, Kinectrics and TVA connect in East Tennessee
The acquisition provides a snapshot of a complex web of nuclear companies that weaves through East Tennessee and Oak Ridge, in particular.
Nearby where Kinectrics is developing its testing campus with X-energy at the Horizon Center, X-energy began construction on a $300 million fuel fabrication facility through its subsidiary TRISO-X in 2024.
The TRISO pebble fuel set to begin production in Oak Ridge in 2027 could one day power the Xe-100 small modular reactor, which received a major investment from Amazon last year. X-energy and Amazon are partnering with a goal to bring 5,000 megawatts of new electricity online by 2039.
Beyond X-energy, Kinectrics has several key clients in the Knoxville area, including the Department of Energy, the Electrical Research Power Institute and the Tennessee Valley Authority.
TVA is also a key client of Nuclear Fuel Services, the Erwin-based BWXT subsidiary. TVA and the National Nuclear Security Administration awarded Nuclear Fuel Services a $505 million contract in 2018 to process more than 20 tons of bomb-grade uranium into low enriched uranium for nuclear power plants and military programs. TVA extended the contract by three years and $122 million in 2024.
The Nuclear Fuel Services facility in Erwin only experienced minor damage caused by the flooding of the nearby Nolichucky River during Hurricane Helene in September, the company said.
BWXT works with companies like TerraPower and GE Hitachi on small modular reactor designs, and it manages multiple Department of Energy and NASA sites through joint ventures.
The company once had plans to build its mPower small modular nuclear reactors at TVA's Clinch River Site in Oak Ridge, but the project was terminated in 2017 after BWXT and Bechtel failed to attract investors. TVA now plans to build small modular reactors at the site using a GE Hitachi design supported by BWXT.
Daniel Dassow is a growth and development reporter focused on technology and energy. Phone 423-637-0878. Email [email protected].
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