Brush Engineered Materials Inc. on June 20 announced the planned construction of a new primary beryllium facility.
The company’s wholly owned subsidiary, Brush Wellman Inc., has entered into a Phase II Technology Investment Agreement (TIA) with the U.S. Department of Defense (DOD) for the construction and start up of a $90.4 million primary beryllium facility. The new facility will be constructed at the company’s existing Elmore, Ohio, production location.
The new facility is being funded by an innovative 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 will contribute research and development, technology, land and buildings and will provide ongoing operations, while the government will fund engineering, design and equipment. The facility will produce primary beryllium, the feedstock material used to produce beryllium metal products.
In total, Brush Wellman’s contribution, including the 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 County Port Authority and a research and development loan from the Ohio Department of Development. These total approximately $10.5 million. Construction is expected to begin in July of this year and be completed in April 2010.
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 facility is being designed to handle both the requirements of strategic defense and growing commercial applications.