A subsidiary of Foster Wheeler AG’s (NASDAQ:FWLT) Global Power Group received a contact for three circulating fluidized-bed (CFB) steam generators from Zhejiang Jiahua Industrial Park Investment & Development Company of China. The generators will be designed and supplied by the company for China Chemical and New Material Park (Jiaxing) in east China's Jiaxing city, Zhejiang Province, to meet its rising demand for steam.
The terms of the contract were not disclosed. The second-quarter 2011 bookings of Foster Wheeler include the current deal. The steam generators are expected to start its operations from fourth-quarter 2012.
Apart from the three 100 Mwe (gross megawatt electric) CFB generators, Foster Wheeler will also be providing auxiliary equipment and site advisory services for the project. The generators are built to meet all environmental requirements while it burns coal. More than 60 CFBs from Foster Wheeler are being used by the Chinese Clients while building confidence among the clients for the company’s environmentally friendly CFB technology.
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. Major competitors of Foster Wheeler are Fluor Corporation (NYSE:FLR) and Jacobs Engineering Group Inc. (NYSE:JEC).
We continue to maintain a Neutral rating on Foster Wheeler, with a Zacks #4 Rank (Sell recommendation) over the next one-to-three months.