Provider of galvanizing services and other electrical solutions, AZZ Inc. AZZ will form a joint venture (JV) with Abdulrahman Ababtain Co., Ltd., to manufacture high-voltage, gas-insulated transmission line (GIL) products in the Kingdom of Saudi Arabia.
The JV will be effective in the first half of 2017, after finalization in late 2016. It will mark AZZ’s first dedicated facility in the country.
Benefits of the JV
AZZ’s GIL products line will ensure reliable and affordable power transmission over long distances. It offers an optimal alternative to conventional cable systems and overhead lines.
The company’s technological innovations and engineering expertise will prove to be indispensible in the production of the GIL offering, which is aimed to cater to customers in the Middle East. The JV will give AZZ access to local markets in the region and is in sync with the company’s objective of expanding operations in the international markets.
Order from Other Markets
In Jul 2016, Azz received a contract from Sanmen Nuclear Power Company, under which it will produce two circuits of 550kV 3,150Amp GIL for the latter’s nuclear plant located in the Zhejiang Province of China.
The contract award is estimated to be prized more than $11 million, with delivery scheduled to begin in mid 2018.
Zacks Rank & Key Picks
Azz carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Machinery Electrical space include EnerSys ENS, Schneider Electric SE SBGSY and AO Smith Corp. AOS. All these stocks have a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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