KBR Wins EPC Contract from Gemini HDPE for Texas Facility - Analyst Blog


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KBR, Inc. ( KBR ) recently received an engineering, procurement and construction (EPC) contract from Gemini HDPE LLC for its forthcoming high-density polyethylene (HDPE) facility. Gemini HDPE is a joint venture between the two companies, INEOS Olefins & Polymers USA (INEOS) and Sasol. Though the financial terms of the deal remained undisclosed, the contract will be recorded in KBR's third-quarter bookings for the Hydrocarbons segment.

The facility, located at INEOS`s Battleground Manufacturing Complex in Texas, will have an annual capacity to produce 470 kilotons of bimodal HDPE. For the production, it will be utilizing INEOS Technologies' licensed process- Innovene S that has been specially designed for HDPE.

This contract win comes after KBR, along with Gemini, successfully completed the front end engineering design (FEED) phase of this project.

Per the contract, Houston Operating Center and Monterrey Engineering Center of the company will undertake the engineering and procurement task. This apart, KBR will delegate a selective part of work as subcontracts along with conducting some direct hires for construction of the facility. Post completion, this would be one of the largest HDPE facilities in the Americas.

Further, the establishment will possess latest facilities for polymerization, pelletization and railcar load-out. In other words, it will upgrade the present infrastructure of the unit.

KBR currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks include Willdan Group Inc. ( WLDN ), Blount International Inc. ( BLT ) and VSE Corp. ( VSEC ). While Willdan Group and Blount International sport a Zacks Rank #1 (Strong Buy), VSE has a Zacks Rank #2 (Buy).

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