Foster Wheeler AG (Nasdaq: FWLT) announced today that a subsidiary of its Global Engineering and Construction Group has signed a cooperation agreement with Clariant International AG (“Clariant”) and Wison Engineering Ltd (“Wison Engineering”) to build a pilot plant to demonstrate Foster Wheeler’s VESTA substitute natural gas (SNG) technology. The pilot plant will be constructed in China and is planned to go on-stream during 2013. Under this agreement, Wison Engineering will provide engineering and construction services, Foster Wheeler will license the technology, and Clariant will supply the proprietary developed catalyst. The plant will be operated by Wison Engineering. The cooperation agreement also sets out a framework for long-term cooperation to deliver and build methanation plants in China based on VESTA technology. Foster Wheeler’s VESTA SNG technology is a novel methanation technology designed to produce SNG from synthesis gas obtained from gasification of either coal or petroleum coke. The VESTA technology is based on once-through operation with no recirculation, avoiding expensive compressors. The technology is based on a maximum operating temperature of 550°C, avoiding any metal dusting formation and enabling relatively simple reactors to be used. The technology can operate with syngas from any commercial gasification technology. The VESTA technology is designed to be simple and safe to operate and to be implemented at a low total investment cost. “We are extremely pleased to announce this cooperation agreement with Clariant and Wison Engineering,” said Umberto della Sala, president and chief operating officer, Foster Wheeler AG. “Focused on China, the world’s largest SNG market, this agreement is an important first step in establishing our ability to address the global SNG market.” Stefan Heuser, General Manager Clariant Catalysts business said, “This exciting technology provides optimized solutions to secure future clean energy in China. We are very pleased to have Wison Engineering with its outstanding reputation and impressive recent development to join Clariant and Foster Wheeler as our strong partner in China.”
Liu Haijun, Senior Vice President of Wison Engineering, said, “We’re very glad to cooperate with Foster Wheeler and Clariant. By leveraging Foster Wheeler’s global expertise and technological strength as well as Clariant’s strong innovation in catalyst technology, we’ll continue to build up our capabilities in coal-to-chemical sector and will be well positioned to seize the favorable market opportunities in the domestic and overseas markets.”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. Clariant is a globally leading specialty chemicals company, based in Muttenz near Basel/Switzerland. On December 31, 2012 the company employed a total workforce of 21,202. The company reports in four business areas: Care Chemicals, Catalysis & Energy, Natural Resources, and Plastics & Coatings. Clariant’s corporate strategy is based on four pillars: managing businesses for profitability, research & development and innovation, growth in emerging markets, and repositioning of the portfolio. Wison Engineering Ltd is an indirect non-wholly owned subsidiary of Wison Engineering Services Co. Ltd.(HKEx: 02236), which is based in Shanghai and specializes in the provision of construction and technical services for engineering installations in the petrochemicals, coal-to-chemicals and oil refining industries. For more information about Wison, please visit the web site at www.wison.com. Safe Harbor Statement Foster Wheeler AG news releases may contain forward-looking statements that are based on management’s assumptions, expectations and projections about the Company and the various industries within which the Company operates. These include statements regarding the Company’s expectations about revenues (including as expressed by its backlog), its liquidity, the outcome of litigation and legal proceedings and recoveries from customers for claims and the costs of current and future asbestos claims and the amount and timing of related insurance recoveries. Such forward-looking statements by their nature involve a degree of risk and uncertainty. 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.