November 4, 2008
Foster Wheeler Awarded Contract for Circulating Fluidized-Bed Steam Generator By Yuen Foong Yu Paper
Foster Wheeler Ltd. (Nasdaq: FWLT) announced today that a subsidiary of its Global Power Group has been awarded a contract by Yuen Foong Yu Paper Manufacturing Co., Ltd (YFY) for the design and supply of a circulating fluidized-bed (CFB) steam generator to be located at its Chiutang Mill in Kaoshiung, Taiwan. This is the third CFB order awarded to Foster Wheeler by YFY. YFY previously purchased a CFB boiler for their Yangzhou Mill in China in 2005 and a CFB boiler for their Hsin Wu Mill in 1988.
Foster Wheeler has received a full notice to proceed on this contract. The terms of the agreement were not disclosed, and the contract value will be included in the company's bookings for the third-quarter of 2008.
The 50 MWe (gross megawatt electric) CFB steam generator is designed to burn bituminous coal as well as tires and sludge. YFY has been burning tires and sludge successfully at its existing Foster Wheeler CFB boiler at Hsin Wu Mill. Construction is expected to begin in the spring of 2009 with commercial operation scheduled for 2011.
"The ability to burn alternative fuels that would otherwise go to landfills was paramount in their decision to select Foster Wheeler as the supplier," said Byron Roth, chief executive officer of Foster Wheeler Power Group Asia.
"We have a long relationship with Foster Wheeler via the supply of their CFB boilers at our facilities," said C. C. Huang, president of YFY Co-Generation Company, a subsidiary of YFY. "The units perform very well and we wanted to continue this relationship with another CFB in our portfolio at our Chiutang Mill."
Foster Wheeler Ltd. is a global engineering and construction contractor and power equipment supplier delivering technically advanced, reliable facilities and equipment. The company employs over 14,000 talented professionals with specialized expertise dedicated to serving our clients through one of its two primary business groups. The company's Global Engineering & Construction (E&C) Group designs and constructs leading-edge processing facilities for the upstream oil and gas, LNG and gas-to-liquids, refining, chemicals and petrochemicals, power, environmental, pharmaceuticals, biotechnology and healthcare industries. The company's Global Power Group is a world leader in combustion and steam generation technology that designs, manufactures and erects steam generating and auxiliary equipment for power stations and industrial facilities and also provides a wide range of aftermarket services. The company is based in Hamilton, Bermuda, and its operational headquarters are in Clinton, New Jersey, USA. For more information about Foster Wheeler, please visit our Web site at www.fwc.com.
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