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Foster Wheeler Awarded EPCm Contract for Propylene Oxide Unit in Saudi Arabia for Sadara Chemical Company
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ZUG, Switzerland--(BUSINESS WIRE)--Feb. 13, 2012-- Foster Wheeler AG (Nasdaq: FWLT) announced today that subsidiaries of its Global Engineering and Construction Group have been awarded an engineering, procurement and construction management (EPCm) contract by Aramco Overseas Company B.V. (AOC), a subsidiary of Saudi Aramco, and by Dow Europe Holding B.V. (Dow) for a propylene oxide (PO) unit at Jubail Industrial City in the Eastern Province of the Kingdom of Saudi Arabia.

This unit will be part of a world-scale, fully integrated chemicals complex, one of the largest of its kind in the world, which will be constructed, owned and operated by Sadara Chemical Company (Sadara), a joint venture between Saudi Aramco and Dow. This contract has been awarded as an extension to the front-end engineering design (FEED) contract awarded to Foster Wheeler by AOC and Dow in 2008.

The Foster Wheeler contract value for the project was not disclosed and will be included in the company’s fourth-quarter 2011 bookings.

The world-scale unit is expected to be completed during the first quarter of 2015.

“A key factor in this win was the outstanding Foster Wheeler performance delivered on previous work for Saudi Aramco and Dow,” said Umberto della Sala, Chief Operating Officer of Foster Wheeler AG. “First, we received an excellent performance rating from both clients for the significant FEED work that we carried out for the new Jubail complex. Second, we recently completed a new propylene oxide facility in Thailand for the Dow-Siam Cement Group joint venture. The new facility was delivered by our Thailand operation on time, within budget, with an outstanding safety record and to very high quality standards. The PO unit of the Jubail project will be managed by our Thailand operation, bringing the additional benefit of rolling over the high-performing, experienced Thai PO project team onto the Jubail project. We also continue to support Saudi Aramco and Dow by executing additional FEED work scopes and assisting in the management of various other elements of the overall Jubail project.”

Foster Wheeler AG is a global engineering and construction contractor and power equipment supplier delivering technically advanced, reliable facilities and equipment. The company employs approximately 12,000 talented professionals with specialized expertise dedicated to serving its clients through one of its two primary business groups. The company’s Global Engineering and Construction Group designs and constructs leading-edge processing facilities for the upstream oil and gas, LNG and gas-to-liquids, refining, chemicals and petrochemicals, power, mining and metals, environmental, pharmaceuticals, biotechnology and healthcare industries. The company’s Global Power Group is a world leader in combustion and steam generation technology that designs, manufactures and erects steam generating and auxiliary equipment for power stations and industrial facilities and also provides a wide range of aftermarket services. The company is based in Zug, Switzerland, and its operational headquarters office is in Geneva, Switzerland. For more information about Foster Wheeler, please visit our Web site at http://www.fwc.com.

Safe Harbor Statement

Foster Wheeler AG news releases may contain forward-looking statements that are based on management’s assumptions, expectations and projections about the Company and the various industries within which the Company operates. These include statements regarding the Company’s expectations about revenues (including as expressed by its backlog), its liquidity, the outcome of litigation and legal proceedings and recoveries from customers for claims and the costs of current and future asbestos claims and the amount and timing of related insurance recoveries. Such forward-looking statements by their nature involve a degree of risk and uncertainty. The Company cautions that a variety of factors, including but not limited to the factors described in the Company’s most recent Annual Report on Form 10-K, which was filed with the U.S. Securities and Exchange Commission and the following, could cause the Company’s business conditions and results to differ materially from what is contained in forward-looking statements: benefits, effects or results of the Company’s redomestication or the relocation of our principal executive offices to Geneva, Switzerland; the benefits, effects or results of our strategic renewal initiative; further deterioration in global economic conditions, changes in investment by the oil and gas, oil refining, chemical/petrochemical and power generation industries, changes in the financial condition of its customers, changes in regulatory environments, changes in project design or schedules, contract cancellations, changes in estimates made by the Company of costs to complete projects, changes in trade, monetary and fiscal policies worldwide, compliance with laws and regulations relating to its global operations, currency fluctuations, war, terrorist attacks and/or natural disasters affecting facilities either owned by the Company or where equipment or services are or may be provided by the Company, interruptions to shipping lanes or other methods of transit, outcomes of pending and future litigation, including litigation regarding the Company’s liability for damages and insurance coverage for asbestos exposure, protection and validity of its patents and other intellectual property rights, increasing global competition, compliance with its debt covenants, recoverability of claims against its customers and others by the Company and claims by third parties against the Company, and changes in estimates used in its critical accounting policies. Other factors and assumptions not identified above were also involved in the formation of these forward-looking statements and the failure of such other assumptions to be realized, as well as other factors, may also cause actual results to differ materially from those projected. Most of these factors are difficult to predict accurately and are generally beyond the Company’s control. You should consider the areas of risk described above in connection with any forward-looking statements that may be made by the Company. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. You are advised, however, to consult any additional disclosures the Company makes in proxy statements, quarterly reports on Form 10-Q, annual reports on Form 10-K and current reports on Form 8-K filed with the Securities and Exchange Commission.

Source: Foster Wheeler AG

Foster Wheeler AG
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Julie Stanisz, 908-730-4047
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