Foster Wheeler AG (Nasdaq: FWLT) announced today that a subsidiary of its Global Engineering and Construction (E&C) Group has signed an equity purchase agreement with CEFOC (The Fourth Construction Company Ltd. of China Electronics System Engineering) to purchase a 49% share in its Chinese Design Institute, PECHDI.
The co-owned design institute is now a joint venture (JV) named Foster Wheeler (Hebei) Engineering Design Company Limited, through which Foster Wheeler Global E&C Group and CEFOC will execute business in China.
Foster Wheeler (Hebei) Engineering Design Company Limited is fully licensed to engineer, procure and construct process facilities in China under single contracts, and it possesses Class A design licenses in the “Chemical, Petrochemical and Pharmaceutical” industry. Under Chinese law, this industry grouping includes other key business sectors for Foster Wheeler: upstream, refining and power.
Foster Wheeler has management control of the new JV company, whose management center is based in Foster Wheeler’s Shanghai office. The existing PECHDI offices in Shijiazhuang, Beijing, Tianjin, and Suzhou have become part of the new JV company; these are well-established operations that have served clients in the refining, chemical, petrochemical and pharmaceutical sectors for 60 years. The new JV company also includes Foster Wheeler’s existing Shanghai operations. The combination of PECHDI resources and Foster Wheeler’s Shanghai operations immediately creates a workforce of more than 600 qualified technical personnel.“This enables us to deliver the full value chain of services that our clients in China are demanding, and represents a key milestone in our growth strategy in China,” said Kent Masters, Chief Executive Officer, Foster Wheeler AG. “This is truly an exciting development for our business in China.” Foster Wheeler AG is a global engineering and construction company and power equipment supplier delivering technically advanced, reliable facilities and equipment. The company employs approximately 13,000 talented professionals with specialized expertise dedicated to serving its clients through one of its two primary business groups. The company’s Global Engineering and Construction Group designs and constructs leading-edge processing facilities for the upstream oil and gas, LNG and gas-to-liquids, refining, chemicals and petrochemicals, power, mining and metals, environmental, pharmaceuticals, biotechnology and healthcare industries. The company’s Global Power Group is a world leader in combustion and steam generation technology that designs, manufactures and erects steam generating and auxiliary equipment for power stations and industrial facilities and also provides a wide range of aftermarket services. The company is based in Zug, Switzerland, and its operational headquarters office is in Reading, United Kingdom. For more information about Foster Wheeler, please visit our Web site at www.fwc.com. 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The Company cautions that a variety of factors, including but not limited to the factors described in the Company’s most recent Annual Report on Form 10-K, which was filed with the U.S. Securities and Exchange Commission, and the following, could cause the Company’s business conditions and results to differ materially from what is contained in forward-looking statements: benefits, effects or results of the Company’s redomestication to Switzerland, benefits, effects or results of the Company’s strategic renewal initiative, further deterioration in global economic conditions, changes in investment by the oil and gas, oil refining, chemical/petrochemical and power generation industries, changes in the financial condition of its customers, changes in regulatory environments, changes in project design or schedules, contract cancellations, the changes in estimates made by the Company of costs to complete projects, changes in trade, monetary and fiscal policies worldwide, compliance with laws and regulations relating to the Company’s global operations, currency fluctuations, war, terrorist attacks and/or natural disasters affecting facilities either owned by the Company or where equipment or services are or may be provided by the Company, interruptions to shipping lanes or other methods of transit, outcomes of pending and future litigation, including litigation regarding the Company’s liability for damages and insurance coverage for asbestos exposure, protection and validity of the Company’s patents and other intellectual property rights, increasing global competition, compliance with its debt covenants, recoverability of claims against the Company’s customers and others by the Company and claims by third parties against the Company, and changes in estimates used in its critical accounting policies. Other factors and assumptions not identified above were also involved in the formation of these forward-looking statements and the failure of such other assumptions to be realized, as well as other factors, may also cause actual results to differ materially from those projected. Most of these factors are difficult to predict accurately and are generally beyond the Company’s control. You should consider the areas of risk described above in connection with any forward-looking statements that may be made by the Company. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. You are advised, however, to consult any additional disclosures the Company makes in proxy statements, quarterly reports on Form 10-Q, annual reports on Form 10-K and current reports on Form 8-K filed or furnished with to the Securities and Exchange Commission.