BATON ROUGE, La., Jul 11, 2002 (BUSINESS WIRE) -- The Shaw Group Inc.
(NYSE:SGR) ("Shaw" or "the Company") today announced that it has signed a
contract to form a 50/50 joint venture with Yangzi Petrochemical Corporation
(YPC), a subsidiary of Sinopec Corporation, to establish a new pipe fabrication
facility in Nanjing, People's Republic of China. Construction is expected to be
complete and the facility operational by the end of 2002. Located approximately
300 km northwest of Shanghai, China in the center of the Yangzi River Delta
area, the facility will be established in the Nanjing New & High Technology
Industry Development Zone, Jiangsu Province, China.
The new, state-of-the-art facility will encompass 80,000 square feet and will be
modeled after existing Shaw facilities. A new PB 16 Special induction bending
machine built by Cojafex, a subsidiary of Shaw, will be installed and capable of
bending pipe up to 16 inches in diameter with walls as thick as 2.5 inches.
Additional equipment will include a cold-bending machine and other advanced
technology fabrication equipment. When fully operational, the facility will have
a capacity to fabricate approximately 12,000 tons of pipe per year.
David Chapman, President of Shaw's Fabrication & Manufacturing Division, stated,
"This joint venture establishes our presence in China and is a strategic move to
create an operations base in one of the largest emerging markets
internationally. By bringing our advanced bending technology, job training and
work practices, we anticipate that this venture will create a tremendous
opportunity for Shaw and the people of China."
The Shaw Group Inc. is the world's only vertically-integrated provider of
comprehensive engineering, procurement, pipe fabrication, construction and
maintenance services to the power, process and environmental & infrastructure
sectors. Shaw is headquartered in Baton Rouge, Louisiana, and currently has
offices and operations in North America, South America, Europe, the Middle East
and Asia-Pacific. Shaw employs more than 20,000 people annually. Additional
information on The Shaw Group is available at www.shawgrp.com.
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor"
for certain forward-looking statements. The statements contained herein that are
not historical facts (including without limitation statements to the effect that
the Company or its management "believes," "expects," "anticipates," "plans," or
other similar expressions) and statements related to revenues, earnings,
backlog, or other financial information or results are forward-looking
statements based on the Company's current expectations and beliefs concerning
future developments and their potential effects on the Company. There can be no
assurance that future developments affecting the Company will be those
anticipated by the Company. These forward-looking statements involve significant
risks and uncertainties (some of which are beyond our control) and assumptions
and are subject to change based upon various factors. Should one or more of such
risks or uncertainties materialize, or should any of our assumptions prove
incorrect, actual results may vary in material respects from those projected in
the forward-looking statements. The Company undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise. A description of some of the risks and
uncertainties that could cause actual results to differ materially from such
forward-looking statements can be found in the Company's reports and
registration statements filed with the Securities and Exchange Commission,
including its Form 10-K and Form 10-Q, reports and on the Company's web-site
under the heading "Forward Looking Statement". These documents are also
available from the Securities and Exchange Commission or from the Investor
Relations department of Shaw. For more information on the company and
announcements it makes from time to time on a regional basis visit our web site
at www.shawgrp.com.
CONTACT: The Shaw Group Inc., Baton Rouge
Christine N. Mollere, 225/932-2500
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