Tuesday, Jacobs Engineering Group Inc. (JEC), said it has entered into an engineering joint venture agreement with Morocco-based Office Cherifien Des Phosphates, or OCP to provide services in their phosphate engineering business activities worldwide. In a seperate announcement, Jacobs also announced receiving a contract worth more than $560 million with Amtrak to support program and construction management services for more than 100 infrastructure improvement projects.
Although the terms of the deal with OCP were not disclosed and will remain confidential, the joint venture calls for providing program, project management, and engineering services for projects based on the US $5 billion investment program of OCP in Morocco.
The Tullahoma, Tennessee-based company said the agreement, when completed, would boost its growth plans in the fertilizer industry and in the region. The company also expects the joint venture to provide engineering and related services on phosphate related projects outside Morocco and the growing West African infrastructure market. Casablanca-headquartered OCP is the world's biggest exporter of phosphates and derivatives.
Following the agreement, which is expected to be in operation before the end of 2009, the new entity will employ Jacobs engineering systems and tools and would be staffed by OCP and Jacobs, as well as with local hires. It is expected to provide employment to over 200 people within a years period.
Noel Watson Chairman Jacobs said, "This is a unique opportunity to support OCP's business goals, leverage our combined skills, and strengthen our development in the fertilizer business. It also enables us both to further penetrate the Moroccan and West African markets."
Jacobs indicated that its agreement with Union Station, Washington, DC-based National Railroad Passenger Corp. Amtrak for the infrastructure improvement projects at over 360 locations is being financed through the American Recovery and Reinvestment Act, or ARRA economic-stimulus package.
Under the deal, Jacobs would manage, obtain, and administer, in part or in full, the design and construction of projects such as maintenance facility upgrades, bridge replacements, track work, security enhancements, and various station improvements.
Announcing its third quarter results on July 27, the company reported net income of $94.9 million or $0.76 per share on revenues of $2.71 billion.
JEC closed Monday's trading at $44.08 on the NYSE.
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