Encompass Announces $45-Million Maintenance Contract From The Dow Chemical Company
HOUSTON, Sept. 5 /PRNewswire/ -- Encompass Services Corporation (NYSE: ESR) announced today that it has been awarded a three-year, $45-million contract to provide on-site maintenance at The Dow Chemical Company's (NYSE: DOW) manufacturing site near Seadrift, Texas.
Under the terms of the agreement, more than 300 Encompass employees will provide routine maintenance, operational support and construction services for small capital projects at the facility. The contract contains an "evergreen" clause that allows for year-to-year renewal following the initial three-year period.
"Dow has been a valuable Encompass customer for more than 30 years," said Joe Ivey, Encompass president and chief executive officer. "Our excellent performance and safety records played a key role in helping us secure significant additional business at this new Dow facility. This award is also a good example of our success in growing our base of recurring revenue streams from post-construction service."
Encompass already provides ongoing, on-site electrical, mechanical and specialty work at Dow facilities in Freeport, Texas; Pittsburg, Calif., and Allyn's Point, Conn.
Situated on more than 4,700 acres along the Victoria Barge Canal, the Seadrift facility began operations in 1954. Each year, its 13 manufacturing units produce approximately 5.7 billion pounds of chemicals, plastics and catalysts for consumer and industrial products worldwide including hydrocarbons, specialty polymers, Unipol polymers, Unipol systems, ethylene oxide/glycol, solvents, intermediates and monomers. Dow recently acquired the Seadrift facility through its merger with Union Carbide Corporation. |
