Contract galore and steady wins continue for
Jacobs Engineering Group Inc
. (
JEC
). Recently, the company announced receipt of a contract from Vale
Canada Ltd. (Vale) to design and supply a new sulfuric acid plant
for its Sudbury smelter in Ontario, Canada.
The acid plant contract from Vale Canada Ltd includes the design
of the complete sulfuric acid plant contact section as well as
supply of equipment and materials. The plant will be featuring
Jacobs' proprietary Chemetics
®
equipment expected to be fabricated at Jacobs' facility in
Pickering, Ontario. . These equipments include stainless steel
converter (with internal exchanger), radial flow gas-gas
exchangers, acid coolers and SARAMET
®
distributors and piping. The bulk of the proprietary equipment is
expected to be fabricated at Jacobs' facility in Pickering,
Ontario. The value of the contract is estimated to be around
$55 million.
The new acid plant, the second major project for Jacobs' at the
Sudbury Basin Site, is a part of Vale's Clean Atmospheric Emissions
Reduction (
AER
) Project. Vale considers the Clean AER Project to be the most
significant environmental investment in the Sudbury Basin, which is
designed to cut sulfur dioxide emissions by more than 70% from
current levels.
Back in 2002, Jacob's was awarded with a contract to modernize
the existing acid plant. In addition, the Company served numerous
orders for proprietary equipments at the outset of the original
acid plant built in the 90s.
On the same day, the company also announced that it has been
awarded its first option year by NASA for its Manufacturing Support
and Facility Operations Contract (MSFOC) at the George C. Marshall
Space Flight Center's Michoud Assembly Facility (MAF).
MAF, managed by the Marshall Space Flight Center in New Orleans,
provides a unique capability for manufacturing large aerospace
structures at a single location. Engaged in designing, assembling
and manufacturing of the Space Shuttle external tank, MAF continues
to support the development and manufacture of hardware for future
spaceflight programs.
Jacobs will continue to support NASA at Michoud and is ready to
extent its honorary contribution to the U.S. space exploration in
future. The option year has a potential value of $137 million.
About Jacobs
Jacobs Engineering Group, one of the world's largest and most
diverse providers of technical, professional, and construction
services, serves a variety of industrial, commercial and government
clients across a global network.
Our Take
Jacobs presently has a significant market share in the huge
global infrastructure market. The company's growing international
exposure and diversification across markets, geographies and
services through strategic contract wins have given it a
competitive edge over its peers, such as
Fluor Corporation
(
FLR
) and
Foster Wheeler AG
(
FWLT
).
We currently hold a Neutral recommendation on the stock. Jacobs
has a Zacks #3 Rank, which translates into a short-term (1-3
months) Hold rating.
FLUOR CORP-NEW (
FLR
): Free Stock Analysis Report
FOSTER WHELR AG (
FWLT
): Free Stock Analysis Report
JACOBS ENGIN GR (
JEC
): Free Stock Analysis Report
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