Chicago Bridge & Iron Company N.V. (NYSE:CBI) has revealed that it has successfully secured a major contract involving a storage project in Central China and the contract is valued at roughly $50 million.
The company made the announcement yesterday revealing that it was awarded the $50 million contract in Central Asia. CB&I did not reveal a lot of details regarding the case but it did point out that the work as per the contract will involve engineering, construction and fabrication of nine flat-bottomed tanks.
“CB&I has provided storage tanks to this customer for many years. With extensive international experience and knowledge of local standards and practices, we can offer a complete single-source storage solution,” stated Luke V. Scorsone, the Executive Vice President for the Fabrication Services operating group at CB&I.
The company made the announcement just one day after a previous announcement through which it revealed that it was awarded contract Xuzhou HaiDing Chemical Technology Co. Ltd. The latter offered CB&I the contract for the licensing and engineering design of a grassroots propane dehydrogenation unit that will be built in China’s Jiangsu Province. The main focus of the contract will be the CATOFIN catalytic dehydrogenation technology that CB&I will provide for the unit.
The project will also use the non-noble and tailor-made CATOFIN catalyst provided by Clariant and the two firms will work towards producing 600,000 metric tons of propylene every year. Daniel M. McCarthy, the executive vice president of technology at CB&I stated that the company was pleased to be awarded the contract. He also added that the firm looks forward to enhancing the footprint of its technology in China by licensing CATOFIN to the Xuzhou HaiDing Chemical Technology project.
The announcement of the contract for the storage project in Central Asia further highlights the recognition the company has received in Asia. It also demonstrates the company’s growing customer base in the region which is a good thing because CB&I’s portfolio keeps growing, thus setting it up for more opportunities in the future.
CB&I stock closed the latest trading session on Tuesday at $14.57 after a 2.97 percent gain compared the value of the stock during the previous close.