Chicago Bridge & Iron Company N.V. (CBI) recently announced that it has received a contract from the China-based Shenhua Ningxia Coal Industry Group Co. Ltd. Per the contract, CBI will be providing engineering services for the licensing and designing of the latter’s forthcoming petrochemicals complex in Lingwu, Yinchuan City, Ningxia. Shares increased by a marginal 0.4% following the announcement on Aug 26.
The contract requires CBI to utilize its Olefins Conversion Technology (:OCT) in order to aid the production of 196,000 metric tons per annum (:MTA) of propylene. Its Comonomer Production Technology (CPT) will be deployed for the production and recovery of as much as 20,000 MTA of comonomer grade 1-butene. This apart, CBI’s novel selective hydrogenation technology – CDHydro will direct a diverse range of feedstock from the connected steam cracker to the OCT unit. The transformation of isobutene to regular butanes will be carried out using CBI’s CDIsis technology, which substantially increases the amount of polymer-grade propylene obtainable from the C4 feed stream.
Last week, the company has received another engineering services contract from Pesky Koncern Naftowy Orlen S.A. (:PKN). This contract entails extension of CBI’s OCT technology for production of 100,000 metric tons per annum (:MTA) of propylene at PKN’s forthcoming on-purpose propylene production facility in Plock, Poland.
Chicago Bridge & Iron currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the sector include Willdan Group Inc. (WLDN), IDEX Corporation (IEX) and VSE Corp. (VSEC). All three stocks carry a Zacks Rank #2 (Buy).