Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Jamie Cook – Credit Suisse
Jamie Cook – Credit Suisse
My first question, can you just talk about on the fab side, how quickly you think we can get the facility in Mexico up and running and fully utilized and how we should think that impacts the margins on a longer term basis?
Jim Bernhard
Certainly we encourage—it has begun operation and it’s going to take 12, 15 months to be fully—to have the facility at full volume. So while we’re hopeful the margins increase we haven’t put it in any of our forecasts. We want to make sure that our productivity etc. is what we anticipate it to be and we haven’t given any numbers on that.
Jamie Cook – Credit Suisse
You talked a lot about the nuclear opportunities on the domestic front and you talked about the coal plant in the UK, can you just give us an update on what type of nuclear opportunities we could potentially see, whether it’s in South Africa or India and what the timeframe would be associated with that?
Jim Bernhard
Okay, we’ve gotten four reactors so far. Last year about this time we told you we’d have two to eight so we’ve got four reactors. We have a Letter of Intent for two more reactors in the United States and that’s with Progress and that should go to—hopefully go to an EPC contract in the next two, three, four months. In addition to that in the United States we feel comfortable that we will again be awarded two to eight reactors over the next calendar year in the US in calendar of 2009. South Africa it’s pretty publically known that the project is between three and 18 reactors with our competition being Areva and that’s about the only comment I have on that.
The UK market continues to develop quicker then we thought and that market should follow very closely with the US market. India we are still hopeful that during the calendar year that the treaty with the current Bush administration will be signed and I think that there’s some movement on India due to the political parties having a—I think the government has come to some type of understanding with the minority party that that may have promise for the rest of the year as well. We continue to—those are the major markets with the exception of China, the other markets throughout the world are mostly smaller, a couple of reactors in different countries. But the global market is developing and continues to develop faster and faster with the search for long-term economical sources of energy.
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