Foster Wheeler AG received an engineering and procurement contract from Sadara Chemical Company (Sadara) for its Global Engineering and Construction Group. The contract is for a packaging center at Jubail Industrial City in the Eastern Province of the Kingdom of Saudi Arabia. The value of the deal has not been disclosed but the contract is included in the third quarter 2012 bookings of Foster Wheeler.
Sadara is a joint venture between Saudi Arabian Oil Company (Saudi Aramco) and The Dow Chemical Company (Dow). Sadara is building a world- class, fully integrated chemicals complex which will be the largest complex ever built in a single phase.
In 2008, Foster Wheeler had received a front-end engineering design (FEED) contract from Sadara, the current contract being an extension of the prior one. The contract awarded is the second major unit received; the first one was awarded in December 2011 and is being executed by Foster Wheeler Thailand office.
The packaging center when completed in the second half of 2014 will act as the logistics handling center for Sadara’s chemical complex. High value-added chemical products and performance plastics for road and rail transport within the Kingdom of Saudi Arabia as well as those to be exported to foreign markets will be packed, stored and loaded by the packaging center.
A series of contracts received by Foster Wheeler shows the trust and confidence the clients have for its services. The company is dedicated to help Sadara carry out its projects and achieve its investment goals successfully by providing its comprehensive technical expertise and skills.
Recently, the company received an engineering, procurement and construction management (EPCm) contract from LANXESS Butyl Pte. Ltd. The contract is for a new neodymium polybutadiene (Nd-PBR) rubber plant to be built on Jurong Island, Singapore, and is included in the third-quarter bookings of the company.
Foster Wheeler AG is based in Zug Switzerland, but its operational headquarters are in Clinton NJ USA. The company operates through two business groups: the Global Engineering and Construction Group - or Global E&C Group - and the Global Power Group. Major competitors of the company are Fluor Corporation (FLR - Analyst Report) and Jacobs Engineering Group Inc. (JEC - Analyst Report).
We continue to maintain a Neutral rating on Foster Wheeler for the long term. The company has a Zacks #3 Rank (Hold recommendation) over the next one-to-three months.