Chicago Bridge & Iron Company N.V.(CBI) recently received a $200 million contract from the Japan-based Toyo Engineering Corp. for supply of ethylene heaters. CBI will be designing and manufacturing the heaters for Toyo Engineering’s PETRONAS’ Refinery and Petrochemicals Integrated Development (RAPID) project. However, the news failed to provide much momentum to the stock which remained flattish.
The plant, located in Pengerang, Johor, Malaysia, will be deploying SRT VII cracking heaters for producing as much as 1.1 million metric tons of ethylene annually. The SRT VII heaters are the latest additions to the SRT high selectivity heaters family, designed for cracking both gas and liquid feedstock. The SRT heaters are utilized for meeting about 40% of the world’s total annual ethylene requirement.
This project, RAPID, comes under the PETRONAS' Pengerang Integrated Complex (PIC) development initiative. PIC includes related facilities like a Pengerang co-generation plant, a re-gasification terminal along with an air-separation unit. This apart, PIC also comprises a project for supplying raw water, and crude and product tanks, along with utilities and facilities for both central and shared requirements.
CBI had previously received another comprehensive steam cracker contract for the same project. Hence, the latest contract marks the company’s strength and prowess in the domain.
Recently, the company also received a front end engineering and design (FEED) contract from Groupement Isarene, for developing the Ain Tsila gas field in Algeria.
CBI currently carries a Zacks Rank #3 (Hold). Better-ranked companies in the sector include ITT Corp. (ITT), General Electric Company (GE) and CLARCOR Inc. (CLC). All these stocks hold a Zacks Rank #2 (Buy).
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