Time and again,
Jacobs Engineering Group Inc.
(
JEC
) has retained its fundamental business strategy of winning client
confidence, building long-term relationships and thus prospering
across diverse markets, worldwide. The company moved a step ahead
in this direction through one more contract win, this time
associating itself with a major investment in Texas.
Jacobs recently announced that it has won a contract to provide
Project Management Consulting (
PMC
) services for a new pipe rolling mill near Corpus Christi, Texas.
The contract was awarded by Tianjin Pipe (Group) Corporation
(TPCO), a global leader in the manufacture of seamless pipes.
TPCO has major manufacturing facilities in China and Indonesia
and is headquartered in Tianjin, China. Over the years, TPCO has
captured over 40% of China's oil country tubular goods ("OCTG")
domestic market and has handled exports to over 100 countries in
Europe, Americas, Asia, Africa and Oceania.
The new pipe manufacturing facility is TPCO's first major mill
in the United States, to be constructed in Gregory, Texas near the
Port of Corpus Christi. The facility is scheduled for phased
completions between December 2012 and end of 2014.
Jacobs, according to the contract, will be assisting TPCO with
the coordination and management of engineering, procurement, and
construction of the mill. This is expected to enhance TPCO's
internal capabilities and resources. Engineering, procurement and
construction of the new facility will include professional
services, materials and/or labor from the United States, Europe and
China. The venture is also expected to boost the internal
capabilities of TPCO's Chinese associate, Capital Engineering &
Research Incorporation Limited (CERI). The Project Management
Consulting services would be provided by Jacobs' Houston and
Shanghai operations.
The contract value has not yet been disclosed. However, the
total value of the program is estimated to be approximately $1
billion.
About Jacobs
Jacobs Engineering Group Inc. is one of the world's largest
engineering and construction companies providing services to a
variety of industrial, commercial and government clients across a
global network. The company directly competes with its peers, such
as
Fluor Corporation (
FLR
)
and
Foster Wheeler AG (
FWLT
)
.
We currently have a Neutral recommendation on the stock. Jacobs
has a Zacks #3 Rank, which implies 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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