KBR, Inc. (KBR - Free Report) received a technology contract from Valmet AB to provide the license, engineering design and proprietary equipment for the Ash Re-Crystallization plant in Minas Gerais, Brazil.
KBR will serve LD Cellulose S.A.'s 500,000 ton/year pulp mill project using the proprietary Ecoplanning crystallization technology. Together with Valmet, KBR’s Technology Solutions unit will support the recovery of useful chemicals and reduce operating costs for the pulp and paper industry. The mill is anticipated to start in 2022.
KBR's Integrated & Innovative IT Solution Bodes Well
KBR has a robust experience in inorganics, including processes and technology solutions for crystallization, evaporation, and the concentration and purification of strong inorganic acids, over the past 70 years.
The company’s Technology Solutions unit has excellent opportunities. At first quarter-end, the segment booked $527-million contract backlog. KBR expects thriving global technology opportunities — led by ammonia, refining and olefins projects — to persist.
KBR is the only license holder of polycarbonate technology, which positions it pretty well for future expansion. The segment continues to perform well in recent times, driven by refining and petrochemicals projects in China, India and Africa, as well as strong technologies demand.
The company had acquired RRT Global’s isomerization technologies in August 2019 in order to offer more octane and clean fuel technology solutions to customers.
Owing to solid performance over the past years, KBR shares’ have outperformed the industry. Notably, the company is banking on strength across businesses to optimize growth potential. Also, steady backlog growth is adding to KBR’s bliss.
Importantly, it expects broad-based growth across all segments, going forward. Primary growth drivers include high-end and differentiated government business work, strong margin performance, along with the technology and consulting business.
KBR — which shares space with Gates Industrial Corporation plc (GTES - Free Report) , Quanta Services, Inc. (PWR - Free Report) and AECOM (ACM - Free Report) in the same industry — currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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