Foster Wheeler AG (FWLT), a global engineering and construction contractor and supplier of power equipment, has won a contract to build a cogeneration plant in Stade, Germany. The contract was received by a subsidiary of Foster’s Global Engineering and Construction Group from Dow Deutschland Anlagengesellschaft mbH.
The value of the contract has not been disclosed by the company and will be included in the bookings of the second quarter of 2010.
The cogeneration project is the extension of the existing relationship on power sector business between Foster and Dow. Foster has been working on petrochemical projects of Dow.
The company will provide engineering, procurement and construction management services to the Stade CoGen Project, planned to have a plant capacity of 150 megawatt electric (MWe) and associated cogenerated steam. The plant will consist of three gas turbogenerators, heat recovery steam generators and combined steam turbogenerators, and electrical infrastructure, offices, storage and utilities, with work likely to start by the beginning of 2013.
Foster Wheeler operates through two business groups: the Global Engineering and Construction Group (Global E&C Group) and the Global Power Group. The Global E&C Group operates worldwide and designs, engineers and constructs onshore and offshore upstream oil and gas processing facilities, natural gas liquefaction facilities and receiving terminals, gas-to-liquids facilities, oil refining, chemical and petrochemical, pharmaceutical and biotechnology services and related infrastructure, including power generation and distribution facilities, and gasification services.
Foster continues to be successful in booking contracts of varying types and sizes in key end markets. The company’s success in this regard is a reflection of its technical expertise, its long-term relationships with clients, and its selective approach in pursuit of new prospects.
Major competitors of Foster Wheeler are Fluor Corporation (FLR) and Jacobs Engineering Group Inc. (JEC).
Foster Wheeler AG is based in Zug Switzerland, but its operational headquarters are in Clinton NJ USA. The majority of Foster’s revenues and new businesses originate from outside the United States. The company serves the following industries: Oil and Gas; Oil Refining; Chemical & Petrochemical; Pharmaceutical; Environmental; Power Generation; and Power Plant Operation and Maintenance.
We currently maintain our Neutral recommendation on Foster Wheeler.
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