Foster Wheeler, CEFOC launch Chinese venture for engineering design
Foster Wheeler announced Tuesday that a subsidiary of its global engineering and construction business has signed an equity purchase agreement with Chinas CEFOC to purchase a 49% share in its Chinese design institute PECHDI.
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, CEO of Foster Wheeler.
The co-owned institute is now a joint venture (JV) named Foster Wheeler (Hebei) Engineering Design Company Ltd. Through the venture, Foster Wheeler and CEFOC (officially named The Fourth Construction Company Ltd. of China Electronics System Engineering) will execute their business in China.
Under Chinese law, this industry grouping includes other key business sectors for Foster Wheeler such as upstream, refining and power. The new company 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 industries.
Foster Wheeler has management control of the new company, whose management is based in Foster Wheelers Shanghai office and includes Foster Wheelers existing Shanghai operations.
The existing PECHDI offices in Shijiazhuang, Beijing, Tianjin, and Suzhou have also become a part of the new company, which has a combined workforce of more than 600 technical personnel.
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