Yesterday, Jacobs Engineering Group Inc. (JEC) and Office Cherifien Des Phosphates (OCP) entered into an engineering joint venture agreement.
The terms of agreement are not disclosed. However, during the initial phase, the joint venture will provide program, project management and engineering services for projects based on the US$5 billion investment program of Office Cherifien in Morocco.
The agreement, when completed, will represent a powerful combination of engineering and program management resources aligned to support OCP in implementing its strategic expansion plans, in particular the infrastructural elements of the Jorf Lasfar phosphate hub development.
It will also advance Jacobs’ growth plans in the fertilizer industry in general and in the region in particular. The joint venture will provide services to OCP and third parties in their phosphate engineering business activities worldwide. In addition, the parties intend to expand the capabilities of the joint venture to include infrastructure engineering services to cater to the growing West African infrastructure market.
The new company will employ Jacobs engineering systems and tools and will be staffed by OCP and Jacobs as well as with local workforce. The new company is expected to be in operation by the end of 2009 with over 200 employees within a 12-month period.
Jacobs is one of the world’s largest and most diverse providers of technical, professional, and construction services. Its major competitors are Foster Wheeler AG (FWLT) and Fluor Corp. (FLR).
The company’s diversification in terms of markets, geography and services will continue to facilitate future growth. Moreover, Jacobs’ cost focus leverages it to expand margins under difficult economic circumstances.
Read the full analyst report on “FWLT”
Read the full analyst report on “FLR”
Read the full analyst report on “JEC”
Read the full analyst report on “OCP”
Zacks Investment Research
