Chicago Bridge & Iron Company N.V. (CBI - Free Report) recently received a $100 million contract from fertilizer company, CF Industries Holdings, Inc. (CF - Free Report) . CBI will be providing services for construction and component fabrication for its facility at Donaldsonville, LA, the largest nitrogen complex in North America.
Per the contract, CBI will be responsible for manufacturing units for urea, ammonia nitrate and nitric acid production. Additionally, the company will construct offsite and utilities facility at the nitrogen complex and fabricate the engineering and construction components for the facility.
CBI has been providing diverse services including tank construction to CF industries since the 1960’s. The company specializes in waste and waste water tanks, mineral processing storage and power applications, such as liquefaction/vaporization and storage facilities.
On Feb 5, CBI received another fabrication contract from The Dow Chemical Company (DOW - Free Report) under its U.S. Gulf Coast Investment Program. The scope of the contract requires the company to provide fabrication for piping solutions for the latter’s propylene, ethylene and polyethylene production units at Texas and Louisiana.
Chicago Bridge & Iron Company is one of the few engineering, procurement and construction and process technology contractors with in-house fabrication facilities, allowing it to offer modular construction, wherever feasible. Modular construction, unlike the traditional onsite “stick built” construction, enables modules to be built in a tightly monitored shop environment and allows better quality control, minimizes weather delays and expedites schedules.
This competitive advantage while complementing the company’s construction business, allows it to win more such contracts compared to its peers.
Chicago Bridge & Iron Company currently has a Zacks Rank #4 (Sell). Some better-ranked stocks in the heavy industries sector include Orion Marine Group, Inc (ORN - Free Report) , and Quanta Services, Inc. (PWR - Free Report) . Both stocks sport a Zacks Rank #2 (Buy).