CERN takes action following insolvency of important supplier.

CERN has several Large Hadron Collider (LHC)-related contracts with Babcock Borsig subsidiary companies or consortia involving such companies. The most significant contracts concern Babcock Noell Nuclear (BNN), one of the three suppliers of dipole magnets for the LHC, and two companies involved in the production of cryogenic equipment.

CERN's investments are safe. The Laboratory holds certificates of ownership for tooling installed at BNN, and CERN's down payment is protected by banker's guarantee. CERN believes, however, that it is in the best interest of the laboratory for these contracts to be fulfilled by the Babcock Borsig companies according to terms agreed before insolvency.

Should this not be possible, the flexibility achieved by dividing the contracts for main dipole supply amongst three companies would allow the work to be redistributed.

The LHC is a long-term collaboration between CERN, collaborating institutes and industry. In any such venture, some aspects are inevitably beyond the Laboratory's control. CERN management is following the developing situation closely, and is fully committed to doing everything possible to avoid repercussions on the LHC schedule.