The Fluor Corp. said Thursday that Fluor Daniel, its principal subsidiary, has won three new contracts, including a $21-million contract to build a plastic manufacturing plant in Shantou, China.
A company spokeswoman said the China contract, although small by the standards of the giant Irvine-based construction and engineering company, reflects Fluor's long-term commitment to expanding its business in China, where it has maintained a presence since the U.S. opened trade relations in 1976.
It also illustrates the company's push to expand internationally. In fiscal 1988, foreign business accounted for 24% of the company's $5.9 billion in new contracts. Since 1976, Fluor has worked on 50 projects in China, ranging from oil refineries and chemical processing to diaper and film manufacturing plants. It currently has 10 projects under way.
Mark Altman, an analyst with PaineWebber, said that to date, China has not generated a great deal of business for Fluor. Fluor is willing to make a large investment now in China because of a large potential payoff in the future, Altman said.
Fluor Daniel also obtained a $125-million contract with the Green Bay, Wis.-based Fort Howard Corp. to build a tissue paper manufacturing machine at Fort Howard's Savannah River Mill near Rincon, Ga. Engineering and construction is scheduled to begin later this year at the mill, which recycles waste paper into facial tissue, napkins, paper towels and toilet paper.
Fluor Daniel also said it was awarded a contract by Houston-based Exxon Chemical Co. to provide engineering, procurement and construction management services to build a polymer plant in Baton Rouge, La. The facility will produce a wide variety of plastics that are used in the automotive, adhesives, textile, packaging and electrical markets.
Fluor, the largest public company based in Orange County, has been staging a comeback after a restructuring begun several years ago. For the nine months ended July 31, the company reported net income of $79.4 million on revenue of $4.61 billion, compared to net income of $32.8 million on revenue of $3.53 billion.