Fluor Corporation FLR, the provider of engineering, fabrication, construction and maintenance services on a global scale, recently conducted the project initiation ceremony of the latest carbon fiber plant of Hexcel Corporation HXL. The event was graced by presence of both the company’s executives and French government officials.
The carbon fiber plant, located in Roussillon, southern France, is capable of producing aerospace-certified highly advanced polyacrylinitrile (“PAN”) and carbon fiber. These materials will be deployed in the commercial production of wide-body aircrafts.
Fluor has completed the front-end engineering design (“FEED”) phase of the project and is currently working to provide engineering/design and procurement services for the facility. After completing this phase, the company is expected to commence construction management for the plant, which is scheduled to be completed in 2017.
Fluor believes success of the current endeavor will help it secure more work from Hexcel going forward, given the latter’s huge global presence. Moreover, Fluor expects its long symbiotic relationship with Hexcel will help it improve the latter’s service delivery throughout the project.
As a matter of fact, Fluor holds a good track record of winning lucrative awards, and management remains optimistic about continuation of this trend in future, which will likely drive its growth. The company has won several awards in second quarter that include a contract in Brazil for offering engineering, procurement, construction (EPC) services to a natural gas field development project; as well as two more EPC contracts from Dominion Virginia Power and Suncor Energy Oil Sands in Virginia and Canada, respectively. We believe that the company’s strong focus on cost-control, timely completion of projects and customer-centric approach will aid its top-line growth, going forward.
Fluor currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include AECOM ACM and KBR Inc. KBR. Both stocks carry a Zacks Rank #2 (Buy).
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