Layne Christensen Company (LAYN - Snapshot Report) recently announced that its Geoconstruction division has been awarded a troika of contracts. A subsidiary of Layne, Bencor Corporation of America has received three tunnel construction projects amounting to approximately $50 million.
The contracts entail Layne Christensen to provide diverse services for the Kaneohe-Kailua Sewer Tunnel Project based in Hawaii, Northgate Link Extension project in Seattle and Blue Plains Advanced Waste Water Treatment Tunnel Project in Washington.
The company will be required to utilize its technologies like jet grouting for the ground treatment work and structural diaphragm (slurry) walls solutions for constructing shafts in all the three projects.
The scope of the first contract requires Layne Christensen to build ground treatment and a couple of deep shafts for the Hawaii project within March to December this year. This project will significantly benefit from the company’s expertise in small diameter business solutions as well as Bencor’s proficiency in constructing slurry walls.
Per the second contract, Layne Christensen will construct a subway station for the Northgate Link Extension project that was incepted to extend the Central Link light rail line in Seattle. The construction, which is scheduled to complete by July 2014, will extend the rail line by 4.3 miles.
The Blue Plains Advanced Waste Water Treatment contract requires Layne Christensen to make six deep circular shafts from March 2014 to Jan 2015. The structural walls will serve as a tunnel boring machine for launching the shafts.
Layne Christensen’s Geoconstruction division essentially provides specialized geotechnical foundation construction services to heavy civil, industrial, commercial and private construction markets across the globe. In the past few quarters, this division has performed impressively. Moreover, it has secured contracts worth about $150 million in the last five months. Notably, Layne’s past experience in executing such contracts poises it favorably to handle the latest projects as well.
Layne Christensen currently has a Zacks Rank #3 (Hold). Investors interested in this sector could also consider better-ranked stocks including AECOM Technology Corporation (ACM - Analyst Report), VSE Corp. (VSEC - Snapshot Report) and Quanta Services, Inc. (PWR - Analyst Report). All of these carry a Zacks Rank #2 (Buy).