Global Engineering and Construction Group of Foster Wheeler AG (FWLT) has signed a memorandum of understanding through its Chilean subsidiary with a unit of GE Energy, a division of General Electric (GE), for the investigation of certain elected mining and metals projects in South America.
Foster Wheeler Chile S.A. excels in the technology of mining and metals and has project execution capability while GE Energy provides equipment and technology. Together, both these companies will be able to deliver new resolutions to the mining sector resolving processing issues, while improving productivity, water and waste management and power utilization.
Further, Foster Wheeler Global Engineering and Construction Group received an engineering, procurement and construction management (EPCm) services contract from Sasol New Energy Holdings (Proprietary) Limited. The EPCm services will be provided by Foster Wheeler to a new gas-fired power generation plant at Sasolburg, South Africa for its outside battery limit (OBL) part. The value of the contract is not yet disclosed The contract is included in the third-quarter 2011 bookings of the company.
The project aims to increase electricity self-sufficiency to 840 megawatt electric (MWe) or 60% of Sasol’s overall power draw. The main plan is to minimize carbon dioxide discharges while improving power self-sufficiency as supply/demand balance has tightened in South Africa.
There has been a significant rise in the method of energy production that would minimize the strain on the environment. These contracts establish Foster Wheeler’s efforts to develop environmental friendly techniques for energy production and customers’ confidence in them.
Foster Wheeler AG is based in Zug Switzerland, but its operational headquarters are in Clinton NJ USA. The majority of Foster’s revenues and new businesses originate from outside the United States. The company serves the following industries: Oil and Gas; Oil Refining; Chemical & Petrochemical; Pharmaceutical; Environmental; Power Generation; and Power Plant Operation and Maintenance. The major competitors of Foster Wheeler are Fluor Corporation (FLR) and Jacobs Engineering Group Inc. (JEC).
We continue to maintain a Neutral recommendation on Foster Wheeler, which corresponds to a Zacks #3 Rank (Hold rating) over the next one-to-three months.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment