JEC Jacobs Engineering Group Inc

Fluor Corporation (FLR) has decided to make an investment of over $30 million in Oregon-based small modular reactor (SMR) technology company, NuScale Power LLC. The announcement was made by Fluor and NuScale executives at the National Press Club.

With this take over, Fluor has become a majority stakeholder in NuScale, who will continue to operate as an independent company in future. Previously, this share had been in U.S. Securities & Exchange Commission (SEC) receivership.

As per a separate contractual agreement made by the companies, Fluor will provide certain services to NuScale and it will further attain exclusive rights to supply engineering and construction services for future NuScale SMR facilities.

With more than 70 employees, NuScale Power is developing its business in small, modular reactor (SMR) technology, initiated in 2000-2003 at Oregon State University and financed by the U.S. Department of Energy. NuScale believes with the help of Fluor it will be able to bring its technology to market in time.

Small modular reactor technology is a likely alternative for the next generation of nuclear energy deployment and the present initiative taken by Fluor and NuScale strengthens this likeliness.

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 Jacob’s Engineering Group (JEC).

We continue to maintain a Neutral recommendation on Fluor Corporation. The stock retains a Zacks #2 Rank (Buy Rating) over the next one-to-three months.

 
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