Foster Wheeler announced today a subsidiary of its Global Engineering and Construction Group has signed an equity purchase agreement with CEFOC to purchase a 49% share in its Chinese Design Institute, PECHDI.
The co-owned design institute is now a joint venture named Foster Wheeler (Hebei) Engineering Design Company Limited, through which Foster Wheeler Global E&C Group and CEFOC will execute business in China.
Foster Wheeler (Hebei) Engineering Design Company Limited is fully licensed to engineer, procure and construct process facilities in China under single contracts, and it possesses Class A design licenses in the “Chemical, Petrochemical and Pharmaceutical” industry. Under Chinese law, this industry grouping includes other key business sectors for Foster Wheeler: upstream, refining and power.
Foster Wheeler has management control of the new JV company, whose management center is based in Foster Wheeler’s Shanghai office. The existing PECHDI offices in Shijiazhuang, Beijing, Tianjin, and Suzhou have become part of the new JV company; these are well-established operations that have served clients in the refining, chemical, petrochemical and pharmaceutical sectors for 60 years. The new JV company also includes Foster Wheeler’s existing Shanghai operations. The combination of PECHDI resources and Foster Wheeler’s Shanghai operations immediately creates a workforce of more than 600 qualified technical personnel.
“This enables us to deliver the full value chain of services that our clients in China are demanding, and represents a key milestone in our growth strategy in China,” said Kent Masters, Chief Executive Officer, Foster Wheeler AG. “This is truly an exciting development for our business in China.”