Scioto County Community Action Director Bob Walton said the United States Enrichment Corp's. plan to open a commercial uranium enrichment plant in Piketon could be in jeopardy if it does not find an investor by 2008.

That's because the company could be facing bankruptcy if it doesn't find a private investor or get government help, he said.

Such a scenario would affect more than the southern Ohio job market.

“What would that mean to the United States of America with no competitive enrichment plant?” he said.

USEC wants to start a new way of enriching uranium at the Portsmouth Gaseous Diffusion Plant by the end of the decade with its American Centrifuge Program.

USEC leases the plant from the U.S. Department of Energy.

The New York Times on June 12 said USEC is struggling to stay in business and is liquidating uranium assets. USEC stocks fell 12 percent after the story broke.

The story pointed to several reasons for USEC's problems, including maintaining high stock dividend, buying back stock and giving large severance packages to some executives.

Former CEO and President William H. Timbers received $14.5 million when he left the company in 2006, the Times said.

Walton called such packages “golden parachutes.”

But he said he still believes the American Centrifuge Program will proceed.

“The technology can be proven to work beyond a doubt,” Walton said. “The technology uses little electricity, so that it's cost is much less. It's just a good business deal.”

Walton said USEC could finance American Centrifuge by selling cylinders of depleted uranium hexaflouride (DUF6) DOE stores at Piketon. But it would take Congressional approval to allow DOE to give the material, also called tails, to USEC.

“Those uranium tails are worth millions of dollars,” he said. “But Congressional reaction has been why bailout a company that gave golden parachutes to executives? And they gave out stock dividends. Why do that for USEC? So the members of Congress have been very negative to USEC.”

Another option would be for another company to buy USEC out.

USEC planned on opening a test plant for the new enrichment process last year, but has not yet done so. USEC spokeswoman Elizabeth Stuckle said the reason for the delay is to get better data on the process first.

She also denied any financial problems in a statement to the Associated Press last week.

But Gov. Ted Strickland's press secretary, Keith Dailey, said Strickland is concerned over USEC's financial difficulties.

“It is uncertain how that may affect the American Centrifuge project,” Dailey said. “As always, his (Strickland's) primary concern is the for well-being of the workers and the potential economic impact to the broader community.”

In April, Strickland told the Portsmouth Daily Times he expects USEC to ask for a taxpayer-funded federal bailout to help it survive.

U.S. 2nd Congressional District Rep. Jean Schmidt, R-Loveland, said she doesn't think The New York Times story is accurate.

Scioto County Economic Director Steve Carter said he's not concerned about USEC's financial problems and also expects it to build its commercial enrichment plant.

“It's just a matter of time until USEC gains private or government help,” he said. “USEC has been aware of this for a couple of years now.”

He also said because nuclear power provides 20 percent of the nation's electricity, officials will find a way to help USEC.

“You can't lose 20 percent of you power supply,” Carter said.

JEFF BARRON can be reached (740) 353-3101, ext. 236.