Foster Wheeler AG (
has teamed up with Clariant International and Wison Engineering
to build a pilot plant in China to demonstrate its Vesta
substitute natural gas (SNG) technology.
It is a long-term cooperation agreement between Foster's
Global Engineering and Construction Group and the two companies.
The sole objective of the deal is to equip a pilot plant for
demonstration of Foster Wheeler's VESTA substitute natural gas
(SNG) technology with catalysts of Clariant, which operates in
the specialty chemicals industry. Wison Engineering, China's
leading private chemical contractor will also be responsible for
the efficient functioning of the plant that is expected to go
on-stream during 2013.
Foster's SNG technology aims at providing optimized solutions
to secure clean energy in China, which is also believed to be the
world's largest SNG market. This technology also has minimal
operational and implementation cost. Management at Foster
believes that this project will prove to be the company's first
stepping stone towards its success in the global market.
However, the current agreement also talks about a provision
for another future contract among the three parties. It will be
an additional long-term contract, with Foster licensing the same
technology, Clariant supplying the catalyst and Wison providing
the engineering and construction services.
Foster's basic operations are focused on the energy sector.
Under the current global scenario, demand for energy is expected
to grow exponentially over the long term with its clients
steadily investing in new and upgraded capacity to meet the
demand. Along with the CFB technology, SNG is a new addition to
the company's portfolio which is expected to attract more
contracts in the future, especially in the Middle East, where
Foster is an undisputed market leader.
Besides Foster, other stocks in the Construction sector that
are currently performing well include
Michael Baker Corporation (
with a Zacks Rank #1 (Strong Buy), while
Harris & Harris Group, Inc. (
Willdan Group, Inc.(
have a Zacks Rank #2 (Buy) each.
BAKER (MICHAEL) (BKR): Free Stock Analysis
FOSTER WHELR AG (FWLT): Free Stock Analysis
HARRIS & HARRIS (TINY): Get Free Report
WILLDAN GROUP (WLDN): Get Free Report
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