Amec Foster Wheeler offloads boiler business for £133m

Cheshire-based engineering giant Amec Foster Wheeler has completed the £133m sale of its circulating fluidised bed (CFB) boiler business.

The sale to Sumitomo Heavy Industries is part of a company-wide transformation programme which includes the sale of non-core assets.

Net proceeds of the sale will be used to reduce net debt.

The CFB boiler business is the largest part of the company’s Global Power Group. Amec Foster Wheeler said the remaining GPG steam generator businesses, including the heat recovery steam generator and industrial boilers businesses, are also expected to be sold during 2017.

Amec Foster Wheeler’s transformation programme was launched by chief executive Jon Lewis following a company-wide review.

It includes implementing a leaner operating model designed to be closer to projects and customers, delivering cost efficiencies, a focus on improving compliance and consistency in how the business operates, refreshing the company strategy and disposing of non-core assets.

Lewis said: “We have made significant progress with the company wide transformation programme that we launched last year. The completion of the sale of the CFB boiler business is a milestone in this programme. We are continuing to implement the programme enabling us to better serve our customers and strengthen the company’s balance sheet.”

Amec Foster Wheeler employs around 35,000 people in more than 55 countries.