Foster Wheeler AG (FWLT) awarded ABB Ltd. (ABB) an order for the automation of inventory operations management of a chemical complex under construction by Sadara Chemical Company in Jubail Industrial City II, Saudi Arabia. The order was booked in the first quarter of 2013.
Financial terms of the deal were not disclosed. The automation is expected to maximize the operational efficiency of Sadara Chemical Company’s two distribution terminals.
A joint venture between Saudi Arabian Oil Company (Saudi Aramco) and The Dow Chemical Company (Dow), Sadara is believed to be one of the world’s largest integrated chemical facilities and the largest ever built in a single phase. It attracted investments worth $20 billion. The project commenced in 2011.
The Sadara Complex is expected to become fully operational by the end of 2016. The complex will comprise 26 world scale manufacturing units and is estimated that it will produce approximately 3 million tons of plastics and high value added chemicals per annum.
According to the contract, ABB will be responsible for the design and execution of the automation of the tank farms and portions of the packaging center. This will also include the transfer through pipes, trucks or trains of bulk raw materials and finished products to and from the complex and between production units.
ABB has been working for the Sadara project since 2011 after it was selected as the Main Automation Contractor. ABB has been responsible for the process automation systems, safety systems and related services, such as project management, project engineering and other site support activities. The project undertaken in 2011 is currently under construction and it is expected to be one of the biggest projects ABB has ever executed.
For the current project, ABB intends to deploy T-MAC Plus system to optimize the operation and increase energy efficiency, safety and control. T-MAC uses graphically configured components throughout to deliver a completely flexible solution that exactly matches a terminal's requirements.
Based in Zurich, ABB is a leading provider of Process Automation Technology by providing its customers with solutions instrumentation, automation and optimization of industrial processes. The industries served include oil and gas, power, chemicals and pharmaceuticals, pulp and paper, metals and minerals, and marine and turbocharging.
ABB currently has a Zacks Rank #3 (Hold). However, some other stocks worth considering include Orion Marine Group Inc. (ORN) having a Zacks Rank #1 (Strong Buy) and Plug Power Inc. (PLUG) having a Zacks Rank #2 (Buy).
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