Energy-focused engineering and construction company McDermott International (MDR) announced the formation of a joint venture with India-based power solutions provider Thermax Ltd. to manufacture highly efficient sub-critical and super-critical boilers and pulverizers for the Indian power sector. The venture, to be based in the Indian city of Pune , will be 51% owned by Thermax, while Babcock & Wilcox Power Generation Group (a subsidiary of McDermott) will control the remaining 49%.
The deal also calls for Babcock & Wilcox to license its technology to the new entity for subcritical boilers of over 300 megawatts (MW) in capacity, supercritical boilers, and coal pulverizers. The joint venture will be able to engineer, build and manage large power projects for the Indian power sector. As part of the agreement, the partners will also construct a new pressure parts fabrication facility in India.
We see the joint venture as part of Babcock & Wilcox’s strong and longstanding relationship with Thermax. The agreement will boost the company’s presence and profile in the global marketplace and provide a significant opportunity to continue the growth of its business in India and around the world.
Also, the business environment for the JV remains robust. India’s ambitious growth plans, together with the country’s dependence on coal-fired power plants, present a tremendous opportunity to participate in a strong power market. The initiative combines Babcock & Wilcox’s long history of proven technologically sophisticated power generation technology and world class project management capabilities with Thermax’s know-how of integrating energy and environmental solutions in the Indian market.
Incorporated in 1959, Houston, Texas-based McDermott International Inc. is an energy-focused leading global engineering and construction company with specialty manufacturing and service capabilities. The firm provides a diverse range of products and services to customers in the energy and power industries, including utilities and other power generators, major and national oil companies, and the U.S. Government.
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