JEC Jacobs Engineering Group Inc

Foster Wheeler AG’s (FWLT) Global Power Group has acquired a German company that designs, manufactures and installs circulating dry ash flue gas scrubbing technology. The technology from the scrubber company, Graf-Wulff GmbH, is used for all types of boilers in the power and industrial sectors. The companies did not disclose the terms of the deal.

The multi-pollutant scrubbing technology from Graf-Wulff reduces sulfur dioxide, particulates, heavy metals, acid gases and other pollutants releases, meeting the recent environmental regulations of the US and Europe. Applications across Europe, North America and Asia use the scrubber and related air quality technology from Graf-Wulff.

The acquisition expands Foster Wheeler’s market presence for its scrubbers, fabric filters and related equipment in both the new and existing utility power and industrial steam plants. The acquisition also broadens the company’s product portfolio and solutions to meet both tightening environmental regulations and the growing demand for energy.

Longer term, Foster Wheeler believes that the global demand for electrical energy will continue to grow and solid-fuel-fired steam generators will fill a significant portion of this incremental generating capacity. The fuel-flexibility of CFB steam generators will enable them to burn a variety of fuels other than coal and produce carbon-neutral electricity when fired by biomass. In addition, the company’s steam generators can be designed to incorporate supercritical technology, which significantly improves its efficiency while reducing emissions.

However, the company is subject to various environmental laws and regulations in the countries in which it operates. If it fails to comply with these laws and regulations, it may incur significant costs and penalties that could materially affect its business, financial condition, results of operations and cash flows. Its business may be adversely impacted by regional, national and/or global requirements to significantly limit or reduce greenhouse gas emissions in the future.

Foster Wheeler AG is based in Zug Switzerland, but its operational headquarters are in Clinton NJ USA. The majority of Foster’s revenues and new businesses originate from outside the United States.  The company serves the following industries: Oil and Gas; Oil Refining; Chemical & Petrochemical; Pharmaceutical; Environmental; Power Generation; and Power Plant Operation and Maintenance. The major competitors of Foster Wheeler are Fluor Corporation (FLR) and Jacobs Engineering Group Inc. (JEC).

Currently, we are maintaining a Zacks #5 Rank (short-term Strong-Sell recommendation) on Foster Wheeler.

 
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