CB&I Expands Modular Fabrication Capabilities

CB&I has acquired a fabrication shop in Beaumont, Texas, with deep water access to the Gulf of Mexico. The new facility will increase the Company's capacity to fabricate and transport large-scale process modules, shop-built vessels and large steel plate sub-assemblies. The transaction price was not disclosed.

The acquisition is part of the Company's effort to expand its fabrication capacity to meet growing market demand. In addition to the new facility in the Golden Triangle Gulf Coast region, CB&I continues to invest in and add capacity to its two existing module fabrication shops in Tyler, Texas.

Located on a 74-acre site with frontage on the Neches River, about one mile from the Port of Beaumont, CB&I's new fabrication shop will have the capacity to load out modules weighing up to 2,500 tons. With truck, rail and deep water access, the Beaumont shop will be able to ship modules throughout the U.S. and, via the Gulf of Mexico, to locations worldwide. The shop will employ between 300 to 500 skilled craftspeople, some of whom will relocate from the Company's facility in Liberty, Texas.

Because the large structures are produced in a controlled environment, modular fabrication often can benefit customers by shortening schedules, reducing on-site field construction hours and improving quality control. CB&I also offers conventional stick-built assembly to provide maximum flexibility in meeting customer needs.

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Posted 10/07/06

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