Fluor and COOEC Form New Fabrication Joint Venture
August 20 2015 - 8:08AM
Business Wire
Partnership consistent with Fluor’s growth
strategy and expands fabrication assets in Asia-Pacific
Fluor Corporation (NYSE: FLR) announced today that it has agreed
with Offshore Oil Engineering Co., Ltd. (COOEC), a subsidiary of
China National Offshore Oil Corporation, to form a new joint
venture, COOEC Fluor Heavy Industries Co., Ltd. (CFHI), through
which the two companies will own, operate and manage the Zhuhai
Fabrication Yard in China’s Guangdong province.
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Zhuhai Skidway and Assembly Yard (Photo:
Business Wire)
Located near Hong Kong in the Zhuhai Gaolan Port Economic
Development Zone, the Zhuhai Fabrication Yard is a world-class,
state-of-the-art facility, which is already establishing a
reputation for serving fabrication needs in the Asia-Pacific
region. At 2 million square meters, the yard can accommodate
fabrication modules weighing more than 50,000 tons. The yard has
delivered a number of significant structures to date and has a
backlog of projects in the Asia-Pacific market.
“COOEC Fluor Heavy Industries is an important strategic
alliance, as it positions Fluor to develop a more powerful presence
in the global construction and fabrication market, and enhances our
abilities to serve and grow our current client base in Asia-Pacific
and around the world. Our customers are enthusiastic about this
venture’s ability to deliver very large cost-efficient structures,”
said Fluor Chairman and CEO David Seaton.
“With this partnership, we are building on Fluor’s 30-year
presence in China and a 15-year relationship with COOEC, a partner
we know well and respect,” Seaton continued. “This joint venture is
fully consistent with our strategy to establish a leadership
position as an integrated solutions provider.”
The new venture adds complementary strengths for both companies.
Fluor brings its 100-year history of building the largest and most
complex projects around the world. COOEC brings its
cost-competitive fabrication capabilities and strong client
relationships in Asia-Pacific and worldwide.
COOEC Fluor Heavy Industries provides Fluor with the capability
to produce cost-effective, very large modules for onshore projects
and gives the company access to the long-term strategic capacity to
deliver offshore fabrication services for clients globally. The new
venture, which is geographically well positioned, increases Fluor’s
fabrication presence to four locations around the world.
As part of the joint venture, Fluor will make two stages of
investments: an initial cash investment of $350 million after all
regulatory approvals are received, which is targeted for late 2015,
and a $139 million investment in the third quarter of 2016. Fluor
will hold 49 percent ownership in the joint venture, with COOEC
holding 51 percent.
Fluor’s investment in the joint venture does not impact the
company’s $1 billion share repurchase program, which the company
expects to complete as planned by the end of 2015.
About Fluor Corporation
Fluor Corporation (NYSE: FLR) is a global engineering and
construction firm that designs and builds some of the world's most
complex projects. The company creates and delivers innovative and
integrated solutions for its clients in engineering, procurement,
fabrication, construction, maintenance and project management on a
global basis. For more than a century, Fluor has served clients in
the energy, chemicals, government, industrial, infrastructure,
mining and power market sectors. Headquartered in Irving, Texas,
Fluor ranks 136 on the FORTUNE 500 list. With 40,000 employees
worldwide, the company's revenue for 2014 was $21.5 billion. For
more information, visit www.fluor.com or follow us on Twitter
@FluorCorp.
About COOEC
Offshore Oil Engineering Co., Ltd. is a listed company
controlled by China National Offshore Oil Corporation. It is
renowned as a large-scale general contracting company nationwide
integrating offshore oil, natural gas exploitation engineering
design, onshore manufacturing and offshore installation,
commissioning, maintenance, LNG and refinery into a whole.
Moreover, it is one of the engineering, procurement, construction
and installation (EPCI) contractors with the largest scale and
greatest strength in the Far East and Southeast Asia.
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Fluor CorporationMedia RelationsBrian Mershon,
469-398-7621orBrett Turner, 864-281-6976orInvestor RelationsGeoff
Telfer, 469-398-7070orJason Landkamer, 469-398-7222
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