KBR, Inc.(KBR) recently formed collaboration with Indonesia-based engineering, procurement and construction (“EPC”) company, PT Rekayasa Industri (“REKIND”). The alliance requires KBR to provide its technology for producing ammonia in regions like Indonesia, Southeast Asia and Asia. The news, announced on Dec 4, did not provide much momentum to the stock, which remained flattish.
Per the agreement, KBR will extend its proven ammonia technology as well as related equipments, catalyst and automation packages to REKIND. Thereafter, REKIND will act as the exclusive promoter and license provider of the technology for ammonia producers in the area.
KBR is a leading ammonia technology provider, having constructed about 230 ammonia plants across the globe. On the other hand, REKIND has more than three decades of experience in the refinery and petrochemical domain. Indonesian government had founded this leading EPC company for the development of industrial plants in the nation.
Built on the strengths of the two companies, the collaboration is expected to boost the growth opportunities in the regional ammonia market. The agreement also marks a positive for KBR as it will likely expand its presence in key emerging markets like Indonesia, Southeast Asia and Asia.
Presently, KBR carries a Zacks Rank #3 (Hold). Better-ranked stocks that can be considered at the moment include AECOM Technology Corporation (ACM), Willdan Group, Inc. (WLDN) and Progressive Waste Solutions Ltd. (BIN). All three stocks sport a Zacks Rank #1 (Strong Buy).
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