Foster Wheeler Signs License Agreement for Advanced Pulverized-Coal Technology in India
April 01 2009 - 8:15AM
Business Wire
Foster Wheeler AG (Nasdaq: FWLT) announced today that a
subsidiary of its Global Power Group has entered into a 20-year
agreement with BGR Boilers Private Limited, an affiliate of BGR
Energy Systems Limited, to provide an advanced technology license
for wall-fired subcritical and supercritical pulverized-coal (PC)
steam generators to be sold in India.
The terms of the agreement were not disclosed. The contract
value will be booked immediately upon the approval of the Indian
Government, whose approval is necessary for BGR to enter in such a
contract. Future royalty payments will be booked over the life of
the agreement.
In addition, the two companies have agreed to cooperate on
multiple prospective projects under separate contracts within the
next five years, with Foster Wheeler providing the engineering and
design along with selected major components.
�This agreement with BGR to jointly serve the domestic power
market in India, represents a major step forward in our strategy to
steadily expand our global presence,� said David J. Parham,
executive vice president of Global Sales and Marketing, Foster
Wheeler Global Power Group. �As India�s need for electric power
continues to increase, the Foster Wheeler-BGR team will be
positioned to add value by providing the Indian power generators
with high-quality advanced technology to meet their growing power
production needs.�
�BGR Energy is a leading EPC contractor in the power generation
sector in India, and this partnership with Foster Wheeler to
manufacture the full range of pulverized-coal boilers will increase
the in-house contribution for our EPC projects and will enable us
to offer a globally recognized quality product to the Indian
customers,� said Mr. B. G. Raghupathy, chairman & managing
director of BGR Energy Systems Limited.
Foster Wheeler AG is a global engineering and construction
contractor and power equipment supplier delivering technically
advanced, reliable facilities and equipment. The company employs
over 14,000 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, 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 are in Clinton, New Jersey, USA. For more
information about Foster Wheeler, please visit our Web site at
www.fwc.com.
BGR Energy, a company listed on the BSE and NSE Stock Exchanges
in India, carries on business in two segments, as a manufacturer of
capital goods and as a prime contractor for turnkey projects.
1. Capital Goods � design, engineer, manufacture and supply
hi-tech systems and equipment for the power, oil & gas,
refinery, petrochemical and process industries.
2. Turnkey Projects � engineering, procurement and construction
(EPC) contracts for power, water and infrastructure projects in the
oil & gas sector.
Safe Harbor Statement
Foster Wheeler 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 Part I, Item 1A �Risk Factors� of the
Company's most recent annual report on Form 10-K and the following,
could cause the Company's business conditions and results to differ
materially from what is contained in forward-looking statements:
risks related to the Company�s recent redomestication transaction,
changes in the rate of economic growth in the United States and
other major international economies, changes in investment by the
oil and gas, oil refining, chemical/petrochemical and power
industries, changes in the financial condition of its customers,
changes in regulatory environments, changes in project design or
schedules, contract cancellations, 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 its global operations, currency fluctuations, war
and/or terrorist attacks on 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 its patents and other intellectual property rights, increasing
competition by foreign and domestic companies, compliance with its
debt covenants, recoverability of claims against its 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 with the Securities
and Exchange Commission.
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