ENGlobal Awarded Reconstruction Project From Huntsman
ENGlobal Awarded Reconstruction Project From Huntsman
HOUSTON, Jan. 31, 2013 (GLOBE NEWSWIRE) -- ENGlobal Corporation (NASDAQ: ENG),
a leading provider of energy-related engineering and automation services,
announced today that it has been awarded a project from Huntsman Performance
Products ("Huntsman"), a division of Huntsman Corporation (NYSE: HUN), to
provide engineering and project management services at Huntsman's
manufacturing plant in Port Neches, Texas.
In April 2012, Huntsman announced its intent to add 250 million pounds per
year of EO capacity to its existing one billion pounds annual capacity at the
same plant. ENGlobal expects to perform the engineering, design and project
management of the reconstruction of an Ethylene Oxide (EO) Unit.
The Company will begin work on the project immediately with engineering
scheduled to be completed in the second quarter of 2013.
Stu Monteith, President of Huntsman Performance Products, said, "The expansion
of our ethylene oxide capacity enables Huntsman to leverage the favorable
North American ethane cost position, which will benefit our intermediate
chemicals and has an attractive projected return on investment. We are
excited to join with ENGlobal to work on this expansion."
"We are pleased to receive this award from Huntsman, who is a long standing
and valued client," said William A. Coskey, P.E., ENGlobal's President and
Chief Executive Officer. "The award clearly affirms our industry expertise and
capability in delivering a safe, quality project in all respects. We are
deeply committed to addressing our clients' unique project needs and
production objectives."
About ENGlobal
ENGlobal (NASDAQ: ENG), founded in 1985, is a provider of engineering and
related project services principally to the energy sector throughout the
United States and internationally. ENGlobal operates through two business
segments: Automation and Engineering & Construction. ENGlobal's Automation
segment provides services related to the design, fabrication & implementation
of process distributed control and analyzer systems, advanced automation, and
related information technology. The Engineering & Construction segment
provides consulting services relating to the development, management and
execution of projects requiring professional engineering as well as
inspection, construction management, mechanical integrity, field support,
quality assurance and plant asset management. ENGlobal has approximately
1,500 employees in 12 offices and 9 cities. Further information about the
Company and its businesses is available at www.ENGlobal.com.
About Huntsman
Huntsman is a global manufacturer and marketer of differentiated chemicals.
Our operating companies manufacture products for a variety of global
industries, including chemicals, plastics, automotive, aviation, textiles,
footwear, paints and coatings, construction, technology, agriculture, health
care, detergent, personal care, furniture, appliances and packaging.
Originally known for pioneering innovations in packaging and, later, for rapid
and integrated growth in petrochemicals, Huntsman has approximately 12,000
employees and operates from multiple locations worldwide. The Company had 2011
revenues of over $11 billion. For more information about Huntsman, please
visit the company's website at www.huntsman.com.
Safe Harbor for Forward-Looking Statements
The statements above regarding the Company's expectations regarding its
operations and certain other matters discussed in this press release may
constitute forward-looking statements within the meaning of the federal
securities laws and are subject to risks and uncertainties including, but not
limited to: (1) our successful execution of this project award and our receipt
of prompt payment for the services we render to our client; (2) whether the
exploration and consideration of strategic alternatives will result in any
transaction and such transaction's effects on the Company and its
stockholders; (3) our ability to comply with the terms of the forbearance
agreement with respect to the Company's Revolving Credit and Security
Agreement, including our ability to develop a plan to restore compliance with
the terms of such credit facility; (4) our ability to obtain the cure or
waiver of defaults under the Company's Revolving Credit and Security Agreement
and our existing letter of credit facility with Export-Import Bank of the
United States; (5) our ability to achieve profitability and positive cash flow
from operations; (6) our ability to collect accounts receivable and process
accounts payable in a timely manner; (7) our ability to respond appropriately
to the current worldwide economic situation and the resulting decrease in
demand for our services and competitive pricing pressure; (8) our ability to
achieve our business strategy while effectively managing costs and expenses;
(9) our ability to accurately estimate costs and fees on fixed-price
contracts; (10) the effect of changes in the price of oil; (11) delays related
to the award of domestic and international contracts; (12) our ability to
execute to our internal performance plans such as our productivity improvement
and cost reduction initiatives; (13) the effect of changes in laws and
regulations with which the Company must comply and the associated costs of
compliance with such laws and regulations, either currently or in the future,
as applicable; (14) the effect of changes in accounting policies and practices
as may be adopted by regulatory agencies, as well as by the FASB; (15) the
effect on our competitive position within our market area in view of, among
other things, increasing consolidation currently taking place among our
competitors; (16) our ability to win new business and convert those orders to
sales within the fiscal year in accordance with our annual business plan;
(17) achievement of our acquisition and related integration plans; and
(18) the uncertainties of the outcome of litigation. Actual results and the
timing of certain events could differ materially from those projected in or
contemplated by the forward-looking statements due to a number of factors
detailed from time to time in ENGlobal's filings with the Securities and
Exchange Commission. In addition, reference is hereby made to cautionary
statements set forth in the Company's most recent reports on Form 10-K and
10-Q, and other SEC filings.
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CONTACT: Natalie S. Hairston
(281) 878-1000
ir@ENGlobal.com
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