Amec Foster Wheeler share price rises as it signs $950m US Air Force contract

 
Caitlin Morrison
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Amec Foster Wheeler will provide a range of services to the Air Force around the world (Source: Getty)

Amec Foster Wheeler announced this morning that it has been awarded a contract to sustain US Air Force installations around the world.

Shares were up two per cent at the open.

The five-year contract has an aggregate maximum value of $950m (£768m) for the multiple awardees and is estimated to reach completion by 2022.

The deal sees Amec engaged by the Air Force Civil Engineer Center (AFCEC) to sustain and improve Air Force and other US Department of Defense (DOD) installations worldwide.

According to Amec, which has agreed to a £5bn takeover offer from oil services firm John Wood Group, the contract "contract places Amec Foster Wheeler in a prime position with the US Air Force for installations work".

"It recognises the company's reputation as a global engineering and construction leader with proven ability to deliver high performance on complex design-build projects in remote and challenging environments," the firm said in a statement to the stock exchange.

Under the contract, Amec will compete for orders for new construction, renovation, site work, demolition, and emergency response in "environments that can be remote and challenging around the world".

Additional services will include radiological and hazardous waste remediation, aircraft fuel storage and hydrant systems, unexploded ordinance remediation, and range services.

"We are honoured to receive this contract which is a testament to our proud history of successfully delivering on AFCEC projects for more than 25 years and builds upon our strategy to increase our work with the DOD," said Ann Massey, president of Amec Foster Wheeler's environment & infrastructure business.

"We look forward to leveraging our global resources and project experience to support the AFCEC mission around the world."

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