Johnson Controls Bags Contract

Johnson Controls (JCI - Analyst Report) has won a record-breaking $87 million project at Princess Noura bin Abdulraham University, the world's biggest women-only university in the Kingdom of Saudi Arabia. Under the contract, Al Salem Johnson Controls, the company's joint venture in Saudi Arabia, will supply 26 York brand chillers to Princess Noura University. 

The Wisconsin-based supplier of automotive interiors, batteries and other control equipment will supply chillers that use HFC-134A refrigerant, which does not contribute to ozone depletion. They are manufactured in San Antonio, Texas. 

The York brand is a proven market leader in energy efficiency. Al Salem Johnson Controls will also supply radiators for the chillers, making this one of the company's largest single orders in its history. The company achieved the first and largest-ever chiller order in the world for the Pearl Qatar project. It has also succeeded in winning the Bahrain Bay project. 

Johnson Controls has won notable contracts over the years. The State of Michigan had awarded $148.5 million in state tax breaks to the Johnson Controls–Saft joint venture to build the first U.S. production facility for lithium-ion batteries in Holland , Michigan . 

Johnson also bagged lithium-ion battery contracts from the U.S. Advanced Battery Consortium and Ford Motor (F - Analyst Report). Johnson Controls was also selected by the U.S. Department of Energy as one of 16 companies to participate in an $80 billion contract to improve energy efficiency projects in Federal buildings. 

The company expanded its sales force to take advantage of the significant growth opportunities for efficiency retrofits in the government market. We recommend the shares of Johnson Controls as Neutral with a target price of $27.

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