UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
December 6, 2000
(Date of report)
USEC INC.
(Exact name of Registrant as specified in its charter)
DELAWARE 001-14287 52-2107911
(State of (Commission File No.) (IRS Employer
Incorporation) Identification No.)
2 DEMOCRACY CENTER
6903 ROCKLEDGE DRIVE
BETHESDA, MARYLAND 20817
(Address of principal executive offices, including zip code)
(301) 564-3200
(Registrant's telephone number, including area code)
ITEM 5. OTHER EVENTS
On December 6, 2000, USEC announced that it is filing petitions
with the U.S. Department of Commerce (DOC) and the U.S. International Trade
Commission (ITC) requesting that the agencies conduct an investigation and
impose duties upon future imports of enriched uranium from France, Germany,
the Netherlands and the United Kingdom. USEC stated that it is seeking fair
pricing for enriched uranium in the United States in furtherance of
sustaining a domestic uranium enrichment capacity essential to U.S.
national security and energy security.
USEC, the sole American producer of enriched uranium, cites its
two European competitors in the petitions: Eurodif S.A., which is
controlled by the French government, and Urenco, Ltd., a
British-Dutch-German consortium. The Company charges that, contrary to U.S.
trade law, Eurodif and Urenco are selling enriched uranium in the United
States below their cost of production and, in the case of Eurodif, below
prices charged in its home market. USEC further asserts that its
competitors are benefiting from government subsidies in their home
countries. USEC asserts that these practices have resulted, and threaten to
result, in material injury to the U.S. industry.
The USEC petitions will be reviewed by the DOC, which will
determine whether dumping and/or unfair government subsidization has taken
place. In tandem, the ITC will investigate claims of material injury and
threat of future material injury resulting from the unfairly traded
imports. If the ITC determines that injury has occurred or is likely to
occur, and the DOC confirms USEC's assertions, U.S. law requires the DOC to
impose antidumping and/or countervailing duties to eliminate the unfair
pricing.
USEC's petitions assert that because of its European competitors'
aggressive and unfair pricing, the Company has lost a substantial volume of
long-term sales in the U.S. market when bidding against Urenco and Eurodif
over the last four years, the period of investigation. As USEC has
previously reported, these lost sales have contributed to USEC not securing
its traditional share of new SWU commitments and will negatively impact
USEC's market share in the future. USEC's backlog of contract commitments
has declined and become more heavily weighted with newer contracts with
shorter terms and lower prices.
In those instances where USEC has won bids, USEC has had to meet
the depressed market price and enter into contracts that are significantly
reducing USEC's profitability. Because these lost sales and depressed
prices generally relate to enriched uranium deliverable under long-term
contracts, the adverse impact of these factors on USEC's revenues and
earnings will be more pronounced in future periods. In addition, USEC
asserts in its petitions that if its European competitors' unfair pricing
is permitted to continue, USEC will likely lose additional long-term sales
in the U.S. market in the future.
The DOC will decide within 20 days whether to open an
investigation. If an investigation is opened, the ITC will make a
preliminary decision on USEC's allegations of injury in early 2001. Final
determinations by the two agencies are expected toward the end of 2001.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
USEC INC.
By: /s/ Henry Z Shelton, Jr.
---------------------------------
Henry Z Shelton, Jr.
Senior Vice President and Chief
Financial Officer
Date: December 6, 2000
