A subsidiary of
Foster Wheeler AG's
) Global Engineering and Construction Group received an
engineering, procurement and construction management (EPCm)
contract from LANXESS Butyl Pte. Ltd. The contract is for a new
neodymium polybutadiene (Nd-PBR) rubber plant to be built on Jurong
Island, Singapore. The contract is included in the third-quarter
bookings of the company, but the contract value is undisclosed.
Earlier in 2012, Foster Wheeler had completed the front-end
engineering design for this project. Foster Wheeler's scope of work
is expected to be completed in 2014.
According to LANXESS, the new facility will be the largest of
its kind and will have the capacity to produce 140,000 tons per
annum of Nd-PBR. The facility includes processing and finishing
buildings, a central control room, a substation and a tank farm.
The new plant will be built beside LANXESS 100,000 tons-per-year
synthetic butyl rubber plant. The 100,000 tons-per-year facility is
the largest of its kind in Asia and is expected to start production
in 2013. Foster Wheeler will be the EPCm contractor for this
facility as well.
Manufacture of tire requires Nd-PBR, which reduces rolling
resistance and increases vehicle energy efficiency compared with
conventional tire rubber. It also protects the tire from
scratches.Thus equipped; these tires make the car rides safer, more
economical as well as environment friendly.
Foster Wheeler hopes to build a good business relation with
LANXESS by providing best services to their customers.
Foster Wheeler AG is based in Zug Switzerland, but its
operational headquarters are in Clinton NJ USA. The company
operates through two business groups: the Global Engineering and
Construction Group -- or Global E&C Group -- and the Global
Power Group. Major competitors of the company are
Jacobs Engineering Group Inc.
We continue to maintain a Neutral rating on Foster Wheeler for
the long term. The company has a Zacks #3 Rank (Hold
recommendation) over the next one-to-three months.
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