SPX Corporation (SPW) recently received a $50 million contract from China-based Shenhua Ningxia Coal Industry Group. Per the contact, SPX Corporation will supply ClearSky Plume Abatement Cooling Systems for a coal liquefaction process facility to be built by the latter.
The ClearSky Plume Abatement technology is a state-of-the-art technology that virtually reduces the steam plume which is highly visible on traditional evaporative cooling systems. Further, this cooling technology offers lower installation and operating costs, considerably reduced water consumption, and increased safety over alternative cooling solutions. To date, this represents the largest order for the ClearSky technology and the first significant installation in China.
Based in the Lingwu Ning Dong coal chemical industry, Shenhua's coal liquefaction process facility, once operational, is projected to process approximately four million tons of indirect coal liquefaction per year. Currently, SPX cooling towers are in operation across various power plants and major sports and cultural venues including the Beijing Olympic stadium, the Shanghai Expo, and the subway lines in Shanghai, Beijing and Guangzhou.
SPX’s Thermal Equipment and Services segment provides cooling solutions to customers across the globe. In the second quarter of 2014, revenues at the Thermal Equipment and Services segment declined 6.6% year over year to $327.3 million. Organic revenues at the segment decreased 6.1%, while adverse currency fluctuations impacted revenues by 0.5%. The organic revenue decline was led by the expected slowdown in large power projects in South Africa. However, increased demand for cooling equipment in Asia Pacific and products for personal comfort heating in the U.S. was a positive.
SPX Corp. provides specialized engineered solutions worldwide. The company currently has a Zacks Rank #3 (Hold). Some other companies in the sector which are performing well include China Automotive Systems Inc. (CAAS), Meritor, Inc. (MTOR) and Genuine Parts Company (GPC). China Automotive sports a Zacks Rank #1 (Strong Buy) while Meritor and Genuine Parts carry a Zacks Rank #2 (Buy).
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