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Jacobs Wins Detailed Engineering Contract from Sanmars

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Keeping with its growth strategy, Jacobs Engineering Group Inc. inked a new service contract with TCI Sanmar Chemical S.A.E. The financial details of the deal are yet not disclosed.

Per the new deal with TCI Sanmar Chemical S.A.E., Jacobs would provide its premium procurement assistance and detailed engineering services for the expansion of the PVC-2 polyvinyl chloride plant – TCI Sanmar – in Port Said, Egypt. TCI Sanmar Chemical S.A.E., previously known as Trust Chemical Industries was acquired by The Sanmar Group in 2007. The acquisition was targeted toward the establishment of the first large green Polyvinyl chloride plant utilizing state-of-the-art technology.

TCI Sanmar plant primarily manufactures caustic soda. The Sanmar Group is currently making investments worth billions in TCI Sanmar to increase its caustic soda productivity. With the premium services offered by Jacobs the extended facility would attain a production capacity of 200 kilo-tons per annum (KTPA) and ultimately boost the plants’ gross PVC productivity to 400 KTPA. This would fortify TCI Sanmar Chemical S.A.E.’s status as one of the largest PVC producers in North Africa and the Middle East. The project is estimated to include an engineering session of 18 months and would require 21 months for mechanical completion.

Growth Prospects

Jacobs is one of the leading providers of technical services and construction solutions for diversified public, industrial and commercial clients worldwide. The latest contact would further solidify the company’s engineering and procurement assistance expertise on a globally. As on Jun 21, 2016, the share price of the company stood at $52.20. We expect this announcement to boost investor’s confidence in the stock.

JACOBS ENGIN GR Price and Consensus

JACOBS ENGIN GR Price and Consensus | JACOBS ENGIN GR Quote

Stocks to Consider

Jacobs presently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include Willdan Group, Inc. (WLDN - Free Report) , ABM Industries Incorporated (ABM - Free Report) and CBIZ, Inc. (CBZ - Free Report) . All the three companies currently hold a Zacks Rank #2 (Buy).

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