Fluor divests equity stake in Mexico JV

Fluor Corporation has announced the divestiture of its equity stake in the ICA Fluor joint venture, which was previously involved in the design and construction of the Etileno XXI petrochemical complex in Veracruz, Mexico. The joint venture, formed with Empresas ICA, had been awarded multi-billion-dollar engineering, procurement, and construction contract by Braskem Idesa in 2012. At that time, Fluor recorded approximately $275 million in backlog for the project.

The Etileno XXI complex, which includes a 1 million ton-per-year ethylene cracker and two high-density polyethylene plants, was expected to begin operations in 2015 as part of a $3 billion investment by Braskem Idesa, a joint venture between Braskem SA and Grupo Idesa. ICA Fluor had contributed to the front-end engineering for the project in 2011.

The decision to divest Fluor’s stake reflects the company’s ongoing strategy to restructure its portfolio and focus on core business areas. No further details regarding the buyer or financial terms of the transaction were disclosed.