Foster Wheeler and SOFCON to Form Joint Venture in Saudi Arabia

01/02/2010


ZUG, Switzerland, Feb 02, 2010 (BUSINESS WIRE) -- Foster Wheeler AG (Nasdaq: FWLT) announced today that a subsidiary of its Global Engineering and Construction Group has signed a Joint Venture Agreement to form a jointly owned Saudi Arabian entity with A. Al-Saihati, A. Fattani and O. Al-Othman Consulting Engineering Company (SOFCON) in the Kingdom of Saudi Arabia. The terms of the agreement were not disclosed.

The new entity, Foster Wheeler SOFCON Consulting Engineering Company, is planned as a regional engineering hub and will be based in the city of Al-Khobar in the Kingdom of Saudi Arabia. Foster Wheeler SOFCON will focus on providing full-service engineering and project management services for onshore/offshore oil and gas, refining, petrochemicals and associated infrastructure projects in Saudi Arabia.

"Foster Wheeler and SOFCON have a long and outstanding record of successful cooperation in project execution in Saudi Arabia. The formation of this new company demonstrates the ongoing commitment of our two companies in working together to deliver successful projects in Saudi Arabia and the provision of high quality services and expertise from a local base," said Umberto della Sala, president and chief operating officer, Foster Wheeler AG.

"It is our goal to make Foster Wheeler SOFCON the leading full-service engineering and project management provider in Saudi Arabia, delivering professional and competitive services in front-end engineering, detailed engineering, procurement, construction and project management. The new entity will bring an enhanced value proposition in the development of the local economy and capabilities," said Ala'a Fattani, president and chief executive officer, SOFCON.

Foster Wheeler AG is a global engineering and construction contractor and power equipment supplier delivering technically advanced, reliable facilities and equipment. The company employs approximately 14,000 talented professionals with specialized expertise dedicated to serving its clients through one of its two primary business groups. The company's Global Engineering and Construction 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 Zug, Switzerland. For more information about Foster Wheeler, please visit our Web site at http://www.fwc.com.

SOFCON was founded in the year 2000 by engineers Abdullah A. Al-Saihati, Othman R. Al-Othman, and Alaa D. Fattani by merging their respective design engineering organizations into a larger, technically more diverse consolidated company continuously aspiring to achieving the founders' vision and meeting clients' expectations in terms of successful delivery of a wide range of local engineering and project management solutions.

SOFCON specializes in providing a complete range of program management, engineering design, procurement, construction and environmental services to various clients in the Kingdom of Saudi Arabia and in the Gulf Co-operation Council countries. As a major engineering and project management service provider to Saudi Aramco, Saudi Electric Company, as well as the SABIC Group of Companies, SOFCON has executed a large number of engineering and project management contracts for prestigious projects. SOFCON's areas of operation include the oil and gas, refining, petrochemicals, power, water and infrastructure business sectors.

Safe Harbor Statement

Foster Wheeler AG news releases may contain forward-looking statements that are based on management's assumptions, expectations and projections about the Company and the various industries within which the Company operates. These include statements regarding the Company's expectations about revenues (including as expressed by its backlog), its liquidity, the outcome of litigation and legal proceedings and recoveries from customers for claims and the costs of current and future asbestos claims and the amount and timing of related insurance recoveries. Such forward-looking statements by their nature involve a degree of risk and uncertainty. The Company cautions that a variety of factors, including but not limited to the factors described in the Company's most recent Annual Report on Form 10-K, which was filed with the U.S. Securities and Exchange Commission and the following, could cause the Company's business conditions and results to differ materially from what is contained in forward-looking statements: benefits, effects or results of the Company's redomestication, further deterioration in the economic conditions in the United States and other major international economies, changes in investment by the oil and gas, oil refining, chemical/petrochemical and power industries, changes in the financial condition of its customers, changes in regulatory environments, changes in project design or schedules, contract cancellations, changes in estimates made by the Company of costs to complete projects, changes in trade, monetary and fiscal policies worldwide, compliance with laws and regulations relating to its global operations, currency fluctuations, war and/or terrorist attacks on facilities either owned by the Company or where equipment or services are or may be provided by the Company, interruptions to shipping lanes or other methods of transit, outcomes of pending and future litigation, including litigation regarding the Company's liability for damages and insurance coverage for asbestos exposure, protection and validity of its patents and other intellectual property rights, increasing competition by non-U.S. and U.S. companies, compliance with its debt covenants, recoverability of claims against its customers and others by the Company and claims by third parties against the Company, and changes in estimates used in its critical accounting policies. Other factors and assumptions not identified above were also involved in the formation of these forward-looking statements and the failure of such other assumptions to be realized, as well as other factors, may also cause actual results to differ materially from those projected. Most of these factors are difficult to predict accurately and are generally beyond the Company's control. You should consider the areas of risk described above in connection with any forward-looking statements that may be made by the Company. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. You are advised, however, to consult any additional disclosures the Company makes in proxy statements, quarterly reports on Form 10-Q, annual reports on Form 10-K and current reports on Form 8-K filed with the Securities and Exchange Commission.

SOURCE: Foster Wheeler AG

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