Foster Wheeler AG’s (FWLT) Global Engineering and Construction Group has won a contract from Cynar Plc of Ireland to provide engineering design services for a 6,000 tonnes per annum plant to convert non-recyclable plastic waste into liquid fuels, primarily diesel.
The basic design work is expected to be completed during the first quarter of 2011.
Foster Wheeler has identified changes that are required to be incorporated into the design for the new plant at Portlaoise, Ireland.
The company’s Global Engineering & Construction 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 facilities and related infrastructure, including power generation and distribution facilities and gasification facilities.
The Global E&C Group provides engineering, project management and construction management services, and purchases equipment, materials and services from third-party suppliers and contractors.
We believe that the world demand for energy will continue to grow over the long term and customers will continue to invest in new and upgraded capacity to meet that demand. In that regard, FWLT was successful in booking contracts for front-end engineering work, which is frequently the precursor to significant work for engineering, procurement and construction.
FWLT 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 where it believes it has significant differentiators.
Longer-term, the company believes that world demand for electrical energy will continue to grow and that solid-fuel-fired steam generators will continue to fill a significant portion of this incremental generating capacity.
The fuel-flexibility of CFB steam generators enables them to burn a variety of fuels other than coal and to produce carbon-neutral electricity when fired by biomass. In addition, the company’s steam generators can be designed to incorporate supercritical technology, which significantly improves efficiency and reduces emissions.
The company’s operations are concentrated in four particular industries (oil & gas, oil refining, chemical/petrochemical and power) and it may be adversely impacted by economic or other developments in these industries.
Worldwide operations involve risks that may limit or disrupt operations, limit repatriation of cash, increase taxation or otherwise adversely affect its business, financial condition, results of operations and cash flows.
Major competitors of Foster Wheeler are Fluor Corporation (FLR) and Jacobs Engineering Group Inc. (JEC).
We currently have a Neutral recommendation on Foster Wheeler.
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