KBR Wins FEED Contract to Expand Mosaic Ammonia Plant - Analyst Blog

KBR, Inc. (KBR) received licensing and engineering design awards from the Minnesota-based The Mosaic Company (MOS), for providing the Front End Engineering Design (“FEED”) services. The contract involves an expansion of the The Mosaic Company's ammonia plant at St. James Parish, LA. KBR recorded the award in its third-quarter backlog (unfilled orders), but the contract value was, however, kept under wraps.

First proposed by Mosaic in Dec 2012, the project was afterwards abandoned around Oct 2013. This was owing to a change of plans by the company, as per media reports.

KBR's services, including its proven ‘lean FEED' technology, will allow Mosaic to restart the construction work at a faster pace. KBR expects this contract to  increase Mosaic's existing ammonia production capacity by as much as 20%.

The existing facility, located near Mississippi river, was also designed by the KBR team. Presently, the company will deploy its proprietary ammonia technology for renovation and expansion of the plant. These apart, the company will also offer the initial engineering and FEED designs to smoothen the process for producing final estimates that is required for approval of the project.

KBR boasts impressive expertise in providing services for licensing, design, engineering and construction of ammonia plants. The project is likely to benefit from the company's technology and project delivery leadership.

KBR remains focused on driving growth by enhancing its strengths. Recently, the company revealed its plans for extensive restructuring of its business lines, so as to focus on the core operational strengths.

KBR currently carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the same sector are AECOM Technology Corporation (ACM) and Willdan Group, Inc. (WLDN), both sporting a Zacks Rank #1 (Strong Buy).

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