Shares of SPX Corp. edged up 0.17% following the news that its subsidiary, Flow Food and Beverage, has received an $18 million contract from Australia-based agribusiness company, GrainCorp Foods.
Per the contract, the SPX unit is required to provide designs as well as installation services for a margarine processing system to GrainCorp. SPX will be using its own process equipment and components for this installation.
The processing facility will consist of an area for preparing the emulsion, which will be connected to four separate margarine production lines. SPX's Denmark team will undertake the designing and management of the automation and control system. This apart, the other mechanical and electrical installations will be handled by the company’s Australian team. This will ensure that the project is in accordance with Australian regulations.
GrainCorp Oils, a unit of GrainCorp Foods, will be investing $117 million for expanding and upgrading its manufacturing facilities in Australia, especially in Numurkah and West Footscray in Victoria.
SPX’s proven experience in processing food and beverage across the globe along with its Australian team’s regional knowledge will significantly benefit the project.
SPX currently carries a Zacks Rank #3 (Hold). Promising stocks that are worth considering include Douglas Dynamic, Inc. (PLOW - Free Report) , Standard Motor Products Inc. (SMP - Free Report) and Franklin Electric Co., Inc. (FELE - Free Report) . All the three stocks carry a Zacks Rank #2 (Buy).