Jacobs Engineering Group (JEC - Analyst Report) recently announced that it has received a contract from an Indian company, RSPL Limited. Per the contract, Jacobs will provide engineering services for the new greenfield soda ash plant in Gujarat, India. The contract is in line with the company’s commitment toward investing more and expanding its client base in India.
Jacobs will deliver detailed engineering, project management, procurement and construction supervision services for RSPL’s project, holding a capacity of producing 500,000 tons of light soda ash per year. About half of the above production capacity holds promise of conversion to dense soda ash. The contract spans for three years but the financial details remained undisclosed.
Allyn Taylor, Vice President of Jacobs Group appreciated RSPL’s confidence on Jacobs and expressed their commitment to deliver superior value to the esteemed client. The project, he believes, will help expand Jacobs’ capabilities across the growing business sectors throughout India.
Jacobs is anticipated to capitalize on growth opportunities in the emerging markets, especially in China and India. The company’s relationship-based business model positions it to benefit from the improvement in capital budgets among clients.
Also, the backlog trend driven by solid new contract wins looks favorable for enhancing Jacobs’ competitive edge against peers like Fluor Corporation (FLR - Analyst Report) and Foster Wheeler AG (FWLT - Analyst Report).
Jacobs is the world's largest and most diverse provider of technical, professional, and construction services. We currently maintain a Neutral recommendation on Jacobs. The stock also carries a Zacks #2 Rank, which implies a short-term (1-3 months) Buy rating.