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Fluor Corporation (FLR) is all set to expand the graphite products manufacturing facility of Showa Denko Carbon Inc. in Ridgeville, South Carolina. The Showa Denko plant, situated in Dorchester County, manufactures graphite material for the steel and automotive supplier industries.  Though the contract value is not disclosed, it is included in the first-quarter 2011 bookings of the company.

Fluor has successfully delivered several contracts in South Carolina over the past several years. The company will be executing the EPC contract for the Showa Denko plant from its Greenville, S.C., office. The Showa Denko plant has been operated by Showa Denko Carbon since 1988. Work on the project is currently underway with substantial portion of the construction work to be performed by Fluor. The increasing demand for graphite electrodes for electric arc furnace steel production will be met through the expansion of the plant.

The company is witnessing signs of recovery in oil and gas markets and Global Services business. Recently, Fluor received a number of new awards driven by substantial mining, which have a lower margin profile. The company’s Mining business is expected to make continued progress ahead. Fluor has bids outstanding in Government, which could add to their backlog in 2011. Further, Global Services business is seeing signs of recovery. Fluor Corporation is confident of strengthening its market position and growth potential going forward.

Acting through its subsidiaries, Fluor Corporation is one of the largest professional services firms, providing engineering, procurement, construction and maintenance as well as project management services on a global basis.

It serves a diverse set of industries worldwide including oil and gas, chemical and petrochemicals, transportation, mining and metals, power, life sciences and manufacturing. It is also a primary service provider to the U.S. federal government.  The company’s prime competitor is Jacobs Engineering Group (JEC).

We continue to maintain a Neutral rating on Fluor Corporation, with a Zacks #3 Rank (Hold recommendation) over the next one-to-three months.

 
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