Jacobs Engineering Group Inc. (JEC - Free Report) recently secured a contract from Borealis AG for an undisclosed amount. Per the deal, the company has been selected for the front-end engineering design (FEED) phase for the latter’s propane dehydrogenation (PDH) plant, located in Kallo, Belgium.
Borealis’ large-scale PDH facility project is a massive investment of the European chemical industry. On completion, this plant is estimated to have an annual production capacity of 740 kilotons. Hence, this world-famous facility is anticipated to help supplement the rising market demand for propylene and polypropylene.
In sync with the aforementioned FEED study contract, Jacobs will formulate the elementary design package for the outside as well as inside battery limit areas of the new PDH plant. The company expects to complete the study by mid-2018.
Over the last three months, shares of this Zacks Rank #3 (Hold) company rallied 14.4%, outperforming 7.7% growth recorded by the industry.
The company is poised to grow on the back of new contract wins, strategic restructuring moves and CH2M HILL Companies Ltd. (‘CH2M’) buyout (December 2017) amid headwinds such as stiff rivalry. Notably, Jacobs stated that the CH2M acquisition will make its business worth $15 billion over the long run.
The company also believes that the latest contract will strengthen its relationship with Borealis as well as help in the receipt of another new deal related to the PDH plant’s next development phase.
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MasTec, Inc. (MTZ - Free Report) holds a Zacks Rank of 2. The company has recorded an average positive earnings surprise of 28.05% over the trailing four quarters.
Rayonier Inc. (RYN - Free Report) has a Zacks Rank of 2. The company has recorded an average positive earnings surprise of 96.01% during the same time frame.
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