Manpower Reduction Announced in Babcock & Wilcox Canada's Melville, Saskatchewan, Facility



    CAMBRIDGE, ON, Oct. 3 /CNW/ - Babcock & Wilcox Canada has announced that
it will be reducing the workforce at its Melville manufacturing facility.
Company representatives met with employees today to advise that commencing in
mid-January, 2008 it will be laying off 48 of its 80 workers.
    The Melville facility serves mainly the fossil industry and is currently
experiencing increased competition outside of Canada, as well as a slow-down
in current demand for its products. B&W Melville also handles much of the
current upgrading work SaskPower is doing on its coal-fueled power generation
plants in the southern part of the province.
    "The declining workload at Melville has been a recent trend and is likely
to continue in the near term," said Mike Lees, President of Babcock & Wilcox
Canada.
    "We are unable to maintain the current workforce in Melville with our
existing projects alone. We continue to retain the Melville facility because
Melville costs are still affordable, the work ethic within the employee
community is strong, there is potential growth for our products currently
being marketed for oil sands extraction and future product lines will be an
opportunity for that plant."
    "We are hoping eventually to increase staffing again at some point as we
can potentially transfer new product lines to Melville. We have a long term
commitment to do everything possible to keep the Melville facility viable,"
Lees added.

    Babcock & Wilcox Canada serves the North American electric utility and
industrial markets and the global nuclear utility market. Based in Cambridge,
Ontario, it is a division of The Babcock & Wilcox Company in Barberton, Ohio,
which is an operating unit of McDermott International, Inc. The Babcock &
Wilcox Company is located on the Internet at www.babcock.com.





For further information:

For further information: Yvette Amor, M.E.S., Manager, Public Relations
& Communications, Babcock & Wilcox Canada, Melville, Ontario, N1R 5V3,
Telephone (519) 621-2120, extension 2416, yamor@babcock.com,
www.babcock.com/bwc, Generating Powerful Solutions(SM)

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BABCOCK & WILCOX CANADA

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