Premium engineering and construction firm Fluor Corporation FLR has been chosen by BASF SE, one of the largest chemical companies in the world, to act as the latter’s global engineering partner. Fluor will aid the firm’s future chemical and petrochemical plant projects.
Per the contract, Fluor is expected to provide different types of engineering services that include conceptual, front-end and detailed engineering to BASF. These apart, it will also oversee procurement, project management and construction management services for BASF’s operations.
Considering the extensive global footprint of BASF, this is undoubtedly one of the most important projects for Fluor. Over the past four years, both companies have established a solid partnership, thereby allowing Fluor to reap benefits from three major regional agreements across Asia, Europe and North America.
Fluor plans to deploy its strong network of global offices to conduct BASF’s chemical and petrochemical projects, going forward. For the latest deal, the company intends to utilize its profound experience, gained during BASF’s project executions in China, Germany, India, Poland, the U.S., Spain, Brazil and Malaysia.
Fluor’s unmatched reputation in winning new contracts, especially in its oil & gas segment, has been its key growth driver. With notable contract-wins in the second quarter of 2015, for e.g. the design-build contract from the Central Texas Regional Mobility Authority and engineering, procurement and construction contracts from clients like Dominion Virginia Power and Suncor Energy Oil Sands, the company’s prospects are expected to improve after lackluster earnings performance in the first quarter.
Fluor currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include KBR Inc. KBR, AECOM ACM and Willdan Group, Inc. WLDN. All stocks carry a Zacks Rank #2 (Buy).
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