Chicago Bridge & Iron
) recently signed a memorandum of understanding (MOU) with China
National Nuclear Corporation (CNNC) in order to enhance cooperation
and collaboration between the companies in the development of
nuclear power plants.
The primary objective of this collaboration is to provide
operation and maintenance support services to CNNC's nuclear power
plants in China. Apart from this, the scope of the agreement also
involves engineering, procurement, and construction management
(EPCM) of the AP1000® nuclear power plants planned and owned by
CNNC in China; international nuclear power market development and
nuclear power training programs and management personnel exchange
in the U.S. and China.
Going forward, this collaboration should support China's plans
to expand its nuclear power generation capacity to 58 GWe by 2020.
Notably, the nation currently has 28 nuclear power units under
construction. Chicago Bridge & Iron already provides EPCM
services to four AP1000 nuclear power units presently under
construction in China, including two CNNC units in the Sanmen,
With this collaboration, Chicago Bridge & Iron currently has
two cooperative agreements with three state-owned corporations
authorized by the State Council of China. Further, in 2013, Chicago
Bridge & Iron had announced a joint venture with China Power
Investment Corporation (CPI) to build nuclear power plants in
In a separate development, Chicago Bridge & Iron received
additional technology contracts from Oman Oil Refineries and
Petroleum Industries Company (Orpic) for the Liwa Plastics Project
in the Sultanate of Oman.
Per the contract, Chicago Bridge & Iron is entailed to
license and engineer design for three units in addition to the
previous contract for its ethylene technology and front end
engineering and design (FEED) services. For this present deal,
Chicago Bridge & Iron will deploy its CDMtbe technology to a
new 90,000 metric ton per annum (MTA) high conversion MTBE unit and
a 41,000 MTA butene-1 recovery plant, and the NGL-MAXSM gas
processing technology for a new 18 million standard cubic meter per
day natural gas liquids (NGL) extraction plant. Notably, the NGL
plant will be the largest single train gas plant designed by
Chicago Bridge & Iron.
Chicago Bridge & Iron primarily engages in the design,
building, repair and modification of steel tanks and other steel
plate structures. In addition, the company has expertise in the
designing and building petroleum terminals, refinery pressure
vessels, low temperature and cryogenic storage facilities, and
elevated water storage tanks for clients internationally.
Chicago Bridge & Iron currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the sector include
Hutchison Whampoa Ltd.
United Technologies Corp.
). All three carry a Zacks Rank #2 (Buy).
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