Foster Wheeler AG
) received an engineering and procurement contract from Sadara
Chemical Company (Sadara) for its Global Engineering and
Construction Group. The contract is for a packaging center at
Jubail Industrial City in the Eastern Province of the Kingdom of
Saudi Arabia. The value of the deal has not been disclosed but the
contract is included in the third quarter 2012 bookings of Foster
Sadara is a joint venture between Saudi Arabian Oil Company
(Saudi Aramco) and The Dow Chemical Company (Dow). Sadara is
building a world- class, fully integrated chemicals complex which
will be the largest complex ever built in a single phase.
In 2008, Foster Wheeler had received a front-end engineering
design (FEED) contract from Sadara, the current contract being an
extension of the prior one. The contract awarded is the second
major unit received; the first one was awarded in December 2011 and
is being executed by Foster Wheeler Thailand office.
The packaging center when completed in the second half of 2014
will act as the logistics handling center for Sadara's chemical
complex. High value-added chemical products and performance
plastics for road and rail transport within the Kingdom of Saudi
Arabia as well as those to be exported to foreign markets will be
packed, stored and loaded by the packaging center.
A series of contracts received by Foster Wheeler shows the trust
and confidence the clients have for its services. The company is
dedicated to help Sadara carry out its projects and achieve its
investment goals successfully by providing its comprehensive
technical expertise and skills.
Recently, the company 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, and is
included in the third-quarter bookings of the company.
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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