Fluor Daniel (NYSE:FLR) announced today that it has been selected by
Republic Group Incorporated (NYSE:RGC) and its wholly-owned subsidiary,
Republic Paperboard Company, to design and build a 100-percent recycled
paperboard mill in Lawton, Oklahoma. Total costs, including working
capital, are estimated to be $160 million to $170 million; Fluor
Daniel's contract value is $147 million and was booked in its third
quarter.
"We are delighted to have been selected by Republic Paperboard Company
to ensure the successful engineering, procurement and construction of
its new mill. This selection completes more than a year's preparatory
work, supporting Republic Paperboard Company with the development of the
plant and selection of the site in Lawton," said Bill Leistner,
president of Fluor Daniel's Manufacturing operating company. "Fluor
Daniel has a long history serving clients in the pulp and paper
industry, and our strong project management capabilities will enable the
multiple contributors on this project to work together effectively and
will ensure the on-time start up of the mill."
Fluor Daniel will provide overall project management, engineering,
procurement and construction services for the mill which, when complete,
will have an annual capacity exceeding 220,000 tons.
Fluor Daniel has subcontracted to Marathon
Engineers/Architects/Planners, LLC, the detailed engineering and design
services and placed an order with Voith Sulzer Paper Technology to
provide the paper machine and recycle fiber equipment.
Work is underway in Fluor Daniel's Greenville, South Carolina;
Marathon's Appleton, Wisconsin; and Voith Sulzer Paper Technology's
Austrian and Middletown, Ohio, facilities. Construction activities have
started on the mill site located in Lawton, Oklahoma. Construction
employment is expected to exceed 500 staff and craft employees. Start-up
of the facility is scheduled for the fourth quarter of 1999.
Republic Paperboard Company President and Chief Executive Officer Phil
Simpson stated, "Fluor Daniel was able to provide the full range of
technical and project management services required for a project of this
magnitude."
The new mill will utilize state-of-the-art, proven technology to produce
gypsum paperboard which is expected to be 20 to 30 percent lighter than
the product currently produced in most existing North American
facilities.
Republic Paperboard Company is a wholly-owned operating subsidiary of
Republic Group Incorporated (NYSE:RGC), which manufactures 100% recycled
paperboard, recovered paper fiber and gypsum wallboard, servicing
markets nationwide.
Marathon Engineers/Architects/Planners, LLC is a member of the Jaakko
Pöyry Group, an internationally recognized engineering and consulting
company specializing in the forest products industries.
Voith Sulzer Paper Technology is a subsidiary of Voith Group of
Companies, and its product portfolio covers a wide range of paper and
board manufacturing equipment, from stock preparation and paper machines
to finishing and support services.
Fluor Daniel, the principal subsidiary of Fluor Corporation (NYSE:FLR),
is a leading engineering, construction, maintenance and diversified
services company with more than 50 offices worldwide.
