) 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. (
), Blount International Inc. (
) and VSE Corp. (
). While Willdan Group and Blount International sport a Zacks Rank
#1 (Strong Buy), VSE has a Zacks Rank #2 (Buy).
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