AZZ Inc. to Provide Nuclear Valve Services for Laguna Verde

A global supplier of specialty electrical equipment, AZZ Incorporated. AZZ was awarded a contract by the Comision Federal de Electricidad (the Federal Electricity Commission or "CFE") to refurbish main steam isolation valves (MSIVs) and reactor recirculation cooling system valves at the Laguna Verde 1 and 2 Nuclear Power Plants.

Per the agreement, AZZ Inc. will provide its proprietary technology to execute valve repair services beginning with Laguna Unit 1 during scheduled outages in the fall of 2015 and continuing in the spring of 2016. The total contract award is estimated to exceed $15 million. The 1,360 MW Laguna Verde Nuclear Power facility is located near Veracruz, Mexico.

AZZ Inc. has the technical expertise and know-how to make nuclear power plants safer for operation. The current order from the CFE is an acknowledgment of AZZ's ability to provide specialty repair solutions to ensure high quality performance of the nuclear units of its international clients.

In Jul 2015, AZZ Inc. received a $9 million contract from China Nuclear Power  Engineering Company (CNPEC) to provide two circuits of  550 kV 2000A Gas Insulated Line GIL for the Hongyanhe Nuclear Power Plant located in Liaoning Province  of China.

Nuclear based power plants may be a solution to rising electricity demand across the globe. However, routine maintenance and repair work are essential for the safe running of the nuclear plants. Japan's Fukushima meltdown has heightened the need for more pro-active measures to run nuclear power plants safely.

Exelon Corporation EXC operates 23 nuclear reactors in the U.S. The utility keeps a sharp eye on the safety and security of its nuclear plant operations and executes timely inspection and maintenance.

In the U.S., nuclear plants contribute nearly 60% of all clean energy generation in the country.

Zacks Rank

AZZ Inc. currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the space are Energous Corporation WATT and Powell Industries, Inc. POWL.  Both stocks have a Zacks Rank #2 (Buy).

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