Jacobs Awarded Contract for $1B Pipe Manufacturing Facility in Texas
PASADENA, Calif., March 27, 2012 /PRNewswire/ — Jacobs Engineering Group Inc. (NYSE: JEC) announced today it was awarded a contract to provide Project Management Consulting (PMC) services for a new pipe rolling mill near Corpus Christi, Texas for Tianjin Pipe (Group) Corporation (TPCO), a global leader in the manufacture of seamless pipe.
Officials did not disclose the contract value; however estimated the total program value at around $1 billion.
Jacobs’s Houston and Shanghai operations are responsible for the Project Management Consulting services. Jacobs is expected to assist TPCO with the coordination and management of engineering, procurement, and construction for the mill thereby enhancing TPCO’s own internal capabilities and resources as well as those of its Chinese associate engineering company, Capital Engineering & Research Incorporation Limited (CERI). Engineering, procurement and construction of the new facility is expected to be a multinational endeavor, including professional services, materials and/or labor from, the United States, Europe and China.
The new manufacturing facility, located in Gregory, Texas near the Port of Corpus Christi, is scheduled to be delivered with phased completions between December 2012 and end of 2014. This project is TPCO’s first major mill in the United States.
In making the announcement, Jacobs Group Vice President Tom McDuffie stated, “We are very proud that TPCO has chosen Jacobs to provide project management consulting services for its first project in the U.S. This is a major investment in Texas and reflects the confidence in our reputation for successfully delivering large facilities anywhere in the world.”
Headquartered in Tianjin, China, TPCO has major manufacturing facilities in China and Indonesia and according to TPCO, has captured over 40 percent of China’s OCTG domestic market and exports to over 100 countries in Europe, Americas, Asia, Africa and Oceania.
Jacobs is one of the world’s largest and most diverse providers of technical, professional, and construction services.
Statements made in this release that are not based on historical fact are forward-looking statements. We base these forward-looking statements on management’s current estimates and expectations as well as currently available competitive, financial and economic data. Forward-looking statements, however, are inherently uncertain. There are a variety of factors that could cause business results to differ materially from our forward-looking statements. For a description of some of the factors which may occur that could cause actual results to differ from our forward-looking statements please refer to our 2011 Form 10-K, and in particular the discussions contained under Items 1 – Business, 1A – Risk Factors, 3 – Legal Proceedings, and 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations. We do not undertake to update any forward-looking statements made herein.
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SOURCE Jacobs Engineering Group Inc.