KBR Awarded Contract for Vinyl Acetate Monomer Catalyst by Shenghong Refining, China

Rhea-AI Summary

KBR (NYSE: KBR) has secured a catalyst supply contract for a Vinyl Acetate Monomer (VAM) project with Shenghong Refining Petrochemical in China. This agreement signifies KBR's first commercial VAM technology license and engineering contract under a partnership with Showa Denko K.K. The VAM unit, which has a capacity of 300 KTA, leverages over 40 years of operational experience from Showa Denko's facility in Japan. The contract enhances KBR's presence in the VAM market and demonstrates its capability in providing advanced technology solutions.

Positive

• Award of catalyst supply contract for a 300 KTA VAM project strengthens KBR's business in the VAM market.
• The partnership with Shenghong and Showa Denko enhances KBR's technological offerings and market reach.

Negative

• None.

HOUSTON, July 14, 2020 /PRNewswire/ -- KBR (NYSE: KBR) announced today that it has been awarded a catalyst supply contract for a Vinyl Acetate Monomer (VAM) project by Shenghong Refining Petrochemical (Lianyungang) Co. Ltd., China. Under the terms of the agreement, KBR will provide proprietary catalyst for Shenghong's grassroot 300 KTA VAM unit. The unit represents the first commercial VAM technology license and engineering contract under an alliance agreement between KBR and Showa Denko K.K.(SDK).

The KBR-SDK VAM technology is backed by more than 40 years of know-how accumulated through the safe and stable operation of SDK's ethylene based VAM unit at the Oita Petrochemical Complex in Japan. VAM is a key intermediate for the production of polymers and resins for adhesives, coatings, paints, films, textiles and other products.

"This award underscores KBR's emerging leadership in the VAM market and strengthens our successful partnership with Shenghong," said Doug Kelly, KBR President, Technology Solutions.

KBR has more than 50 years of experience in providing technologies, flexible solutions and expertise that petrochemical manufacturers rely on to produce ethylene, propylene, acetyls, phenolics, vinyls and other specialty products from a variety of feedstocks, safely and efficiently.

About KBR, Inc.

KBR is a global provider of differentiated professional services and technologies across the asset and program life cycle within the Government Services and Energy sectors. KBR employs approximately 37,000 people worldwide (including our joint ventures), with customers in more than 80 countries and operations in 40 countries, across three synergistic global businesses:

• Government Solutions, serving government customers globally, including capabilities that cover the full life cycle of defense, space, aviation, and other government programs and missions from research and development, through systems engineering, test and evaluation, and program management, to operations, maintenance, and field logistics
• Technology Solutions, featuring proprietary technology, equipment, catalysts, digital solutions and related technical services focused on providing sustainable and value-add solutions for a broad base of industrial, ammonia, and specialty chemicals and inorganics customers
• Energy Solutions, providing services across the asset life cycle to customers globally, including energy transition and efficiency, onshore and offshore oil and gas, LNG/GTL, refining, petrochemicals, chemicals, and fertilizers

KBR is proud to work with its customers across the globe to provide technology, value-added services, and long-term operations and maintenance services to ensure consistent delivery with predictable results. At KBR, We Deliver.

Visit www.kbr.com

Forward Looking Statement

The statements in this press release that are not historical statements, including statements regarding future financial performance, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond the company's control that could cause actual results to differ materially from the results expressed or implied by the statements. These risks and uncertainties include, but are not limited to: the outcome of and the publicity surrounding audits and investigations by domestic and foreign government agencies and legislative bodies; potential adverse proceedings by such agencies and potential adverse results and consequences from such proceedings; the scope and enforceability of the company's indemnities from its former parent; changes in capital spending by the company's customers; the company's ability to obtain contracts from existing and new customers and perform under those contracts; structural changes in the industries in which the company operates; escalating costs associated with and the performance of fixed-fee projects and the company's ability to control its cost under its contracts; claims negotiations and contract disputes with the company's customers; changes in the demand for or price of oil and/or natural gas; protection of intellectual property rights; compliance with environmental laws; changes in government regulations and regulatory requirements; compliance with laws related to income taxes; unsettled political conditions, war and the effects of terrorism; foreign operations and foreign exchange rates and controls; the development and installation of financial systems; increased competition for employees; the ability to successfully complete and integrate acquisitions; and operations of joint ventures, including joint ventures that are not controlled by the company.

KBR's most recently filed Annual Report on Form 10-K, any subsequent Form 10-Qs and 8-Ks, and other U.S. Securities and Exchange Commission filings discuss some of the important risk factors that KBR has identified that may affect the business, results of operations and financial condition. Except as required by law, KBR undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

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SOURCE KBR, Inc.

FAQ

What contract did KBR announce on July 14, 2020?

KBR announced a catalyst supply contract for a Vinyl Acetate Monomer (VAM) project with Shenghong Refining Petrochemical.

What is the significance of the VAM project for KBR?

The VAM project represents KBR's first commercial technology license and engineering contract under its alliance with Showa Denko K.K.

What is the capacity of the VAM unit mentioned in KBR's press release?

The VAM unit has a capacity of 300 KTA.

Where is the Shenghong Refining Petrochemical located?

Shenghong Refining Petrochemical is located in Lianyungang, China.

How does KBR's partnership with Showa Denko K.K. benefit its operations?

The partnership enhances KBR's technological expertise and market presence in the VAM sector, leveraging over 40 years of operational know-how.