Fluor Corporation announced that it has reached mechanical completion of BASF’s Zhanjiang Verbund site in China, the largest investment BASF has made in the country to date. The milestone marks the end of the construction phase for a complex 10‑billion‑euro facility that will house an EOEG process unit, a 220 kV substation, steam and water treatment plants, seawater intake, cooling towers, wastewater treatment, waste handling, a container yard, automated warehouses, and extensive piping and logistics infrastructure.
The Zhanjiang plant will become BASF’s third‑largest Verbund site worldwide, after Ludwigshafen and Antwerp, and is expected to be fully operational by the end of 2025. Fluor’s role encompassed engineering, procurement, and construction, and the project’s completion is projected to generate significant future revenue and cash flow for Fluor as the plant ramps up production. The achievement also reinforces Fluor’s partnership with BASF, a key customer in the Energy Solutions segment, and demonstrates Fluor’s capability to deliver large‑scale chemical projects on time and within budget.
Fluor’s recent financial performance provides context for the significance of this milestone. In Q3 2025, the company reported a GAAP net loss of $697 million, largely driven by a $653 million charge related to the Santos ruling and a $401 million reduction in NuScale’s share price. However, adjusted EBITDA rose 29% year‑over‑year to $161 million, and adjusted EPS increased 33% to $0.68, beating analyst expectations of $0.44. The company’s guidance for 2025 was raised, with adjusted EPS now projected between $2.10 and $2.25 per share and adjusted EBITDA between $510 million and $540 million, reflecting confidence in continued execution and margin protection.
The mechanical completion of the Zhanjiang project is a key driver of Fluor’s future cash flow. The plant’s advanced digital and sustainable production capabilities position BASF to meet growing demand in China’s chemical market, while Fluor benefits from a long‑term, high‑value contract that aligns with its focus on energy transition and high‑margin projects. Fluor’s backlog, which stood at $5.1 billion at the end of the year, underscores the firm’s robust pipeline, though a separate report cited a backlog of $28.2 billion, indicating a need for further verification of the company’s revenue prospects.
Overall, the completion of the Zhanjiang Verbund site represents a significant operational achievement for Fluor, strengthens its relationship with a strategic customer, and provides a tangible source of future revenue and cash flow that supports the company’s upgraded guidance and long‑term growth strategy.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.