SPX Corp. (SPW) recently received a contract from Biocom Ltd. to provide a dairy processing system for the latter’s Nesvizh Baby Food Factory in The Republic of Belarus. The deal is valued at $28 million and the new baby food plant is scheduled to start operations by the end of 2015 or 2016.
The scope of the contract requires SPX to provide a turnkey dairy processing system backed by a comprehensive portfolio of solutions integrated with ultrafiltration and infusion technologies. Further, the dairy processing system will include an assortment of highly engineered equipment, including homogenizers, separators, plate and scraped surface heat exchangers, bacteria clarifiers, pumps, valves, membrane technology, extended shelf life technology with microfiltration and ultra-high temperature tubular infusion plants.
Biocom intends to establish an advanced baby food processing plant in Belarus to meet the growing global demand for baby food. Also, Biocom intends to process about 500 tons of milk daily in this new facility and export the surplus. The new plant primarily aims at producing liquid baby food, variety of yogurts, cottage cheese and an array of milk including ultra-high temperature, extended shelf life, pasteurized and flavored milks.
This deal will feature under SPX Corp’s Flow Technology segment which primarily offers an extensive portfolio of products and services that help processors counter application challenges. Flow Technology revenues for the quarter increased 0.6% to $616.7 million as against $613.0 million in the prior-year quarter. The marginal increase was driven by increased sales of oil & gas aftermarket services, power and energy valves, industrial flow components, as well as food and beverage systems.
SPX Corp. is a global multi-industry manufacturing leader and its highly-specialized engineered products and innovative technologies help it to fulfil rising demand for electricity and processed foods and beverages, particularly in emerging markets.
SPX currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the sector include Altra Holdings Inc. (AIMC), Nordson Corp. (NDSN) and Twin Disc (TWIN). All three hold a Zacks Rank #2 (Buy).
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