JEC High on Contracts Galore

Recently, Jacobs Engineering Group Inc. (JEC - Analyst Report) received four contracts from Arkema to Support PVC Projects in China and announced receipt of another contract from Marine Corps Logistics Command for Distribution Management Center Support.

Arkema Contracts

Jacobs will be executing four contracts from Arkema France for basic engineering services to support the provision of Arkema's proprietary suspension and emulsion technology to four of its clients in China. Value of the contracts has not been disclosed yet.

Ever since 2008, Jacobs and Arkema have collaborated worldwide on projects for which Arkema has licensed its PVC technology. The new contracts are anticipated to strengthen Jacobs' presence in China; supported by Arkema’s special technical capabilities in the competitive global chemical industry.

MCLC Support Program

Jacobs also announced that it has been selected to provide technical and operations support for the Marine Corps Logistics Command (MCLC) Distribution Management Center (DMC).  

According to the contract, Jacobs will be providing support for DMC program advocacy, oversight and coordination as well as off-site assistance for Distribution Support Team operations within continental U.S. Such support at DMC operating locations overseas is anticipated to ensure end-to-end asset management, equipment readiness and service to war fighters.

The contract has one base year and one option year with a potential value of $20.2 million through January 2014.

About Arkema

Arkema's technology is currently used in four new polyvinyl chloride (PVC) production plants in Hefei, Golmud, Etuoke Banner and Wu Lan Cha Bu, People's Republic of China. The basic engineering work is being jointly performed by Jacobs' PVC technology experts in its office in Leiden, The Netherlands, and Arkema's PVC technology team based in Lyon, France.

About MCLC

MCLC supports Marine Corps operating forces by providing logistics solutions and support for fielded weapon systems, support services and supplies worldwide. The Distribution Management Center of MLCL is responsible for movement, storage, maintenance, forward in-stores and ground equipment staging operations for the major equipment of Marine Corps. The recent contract is expected to strengthen Jacobs’ longstanding relationship with the Marine Corps and Marine Corps Logistics Command

About Jacobs

Jacobs Engineering Group, one of the world's largest and most diverse providers of technical, professional, and construction services, serves a variety of industrial, commercial and government clients across a global network.

Jacobs presently has significant share in the huge global infrastructure market. The company’s continuous inflow of contracts, growing international exposure and diversification across markets, geographies and services has been providing a competitive edge over its peers such as, Fluor Corporation (FLR - Analyst Report) and Foster Wheeler AG (FWLT - Analyst Report).

We currently hold a Neutral recommendation on the stock. Jacobs has a Zacks #3 Rank, implying a short-term (1-3 months) Hold rating.

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