Credit: Shutterstock photoEmerson Electric Co. 's EMR operating segment, Emerson Process Management, has been recently chosen for offering its reliability and automation technology services in a project of Carbon Holdings, a renowned Egyptian petrochemical firm.
Emerson Process Management would offer its specialized engineering, reliability and equipment health monitoring services to Carbon Holdings' Tahrir Petrochemicals Project at Ain Sokhna, Egypt. Emerson Electrics' initial scope of task in the project is estimated to value $150 million. As the primary automation contractor, Emerson Process Management would ensure timely construction of the facility and within budget.
Post completion, Tahrir Petrochemicals would be the major petrochemical plant in Egypt and the chief naphtha cracker plant in the world. The plant would generate 1.5 million metric tons of ethylene each year. The plant would further process the accrued ethylene into polyethylene, in addition to yielding Hexene, butadiene, benzene, propylene and styrene. The project will create numerous jobs in the country.
Moving Forward
Emerson Electric is a diversified global manufacturing and technology company. It offers a wide range of products and services for industries like process management, climate technologies, network power, storage solutions, professional tools, appliance solutions, motor technologies and industrial automation.
The premium industrial goods company's Process Management division provides intelligent control systems & software, measurement instruments and valves. We believe that the new contract would boost the company's brand value in the global forum and boost revenues.
Why a Zacks Rank #4 (Sell)?
Troubled by certain issues in business, Emerson Electric currently carries a Zacks Rank #4. Excessive restructuring expenses, adverse impact of divestitures, lesser number of orders generated from electrical distribution business and power generating alternators are denting the company's prospects. Lower demand from the industrial markets, strengthening U.S. currency and economic downturn in certain economies remain the other headwinds.
Stocks to Consider
Some well-ranked stocks within the industry are Albany International Corp. AIN , Astec Industries, Inc. ASTE and Berry Plastics Group, Inc. BERY . All the three stocks presently hold a Zacks Rank #2 (Buy).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
