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Babcock & Wilcox Power Generation Group, Inc. (B&W PGG), an affiliate of engineering firm The Babcock & Wilcox Company (BWC - Snapshot Report), has got a contract from Black & Veatch, an engineering and construction company.

Per the agreement, B&W PGG will design and provide FM water tube package boilers. The components of the boilers are expected to be produced at West Point, Miss.-based facility of B&W PGG. The boilers will provide steam in order to generate power and industrial processes at the Narrows, Va.-based manufacturing facility of chemical and advanced materials maker, Celanese Corporation (CE - Analyst Report).

For power generation, the dual fuel boilers will utilize either oil or natural gas. Moreover, these boilers will substitute the coal-fired units that are currently being used in the plant.

B&W PGG added that its FM water tube package boilers are cost-effective and reliable for industrial and commercial use. The boilers are expected to be delivered by Apr 2014.

Headquartered in Charlotte, N.C., Babcock & Wilcox is engaged in providing clean energy technology and services for the nuclear, fossil and renewable power markets worldwide. The company – which was spun off as an independent and publicly traded entity from energy-focused engineering and construction firm McDermott International (MDR - Analyst Report) in Aug 2010 – operates in four business units: Power Generation, Nuclear Operations, Technical Services and Nuclear Energy.

Babcock & Wilcox currently carries a Zacks Rank #2 (Buy), implying that it is expected to outperform the broader U.S. equity market over the next one to three months.

Apart from Babcock & Wilcox, one can look at oil field machinery and equipment supplier Dril-Quip Inc. (DRQ - Analyst Report) that offers value. The stock sports a Zacks Rank #1 (Strong Buy).

 

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