Chicago Bridge & Iron Company

Chicago Bridge & Iron Company

Type	Public
Traded as	NYSE: CBI
Industry	Engineering Construction Oil and Gas
Founded	1889
Founder	Horace E. Horton George Wheelock William Wheelock
Headquarters	The Hague, Netherlands
Area served	Worldwide
Key people	Michael L. Underwood (Chairman of the Audit Committee) L. Richard Flury (Non Executive Chairman of the Board of Supervisory Directors Philip K. Asherman (President), (CEO) & (Director)
Revenue	$ 5.485 billion (2012)[1]
Operating income	$ 455.6 million (2012)[1]
Net income	$ 301.7 million (2012)[1]
Total assets	$ 4.330 billion (2012)[1]
Total equity	$ 1.396 billion (2012)[1]
Number of employees	50,000 (May 2013)[1]
Website	www.cbi.com

Chicago Bridge & Iron Company known commonly as CB&I, is a large multinational conglomerate engineering, procurement and construction (EPC) company. CB&I specializes in projects for oil and gas companies. According to one of the founder's heirs, "The old joke is that Chicago Bridge & Iron isn't in Chicago, doesn't build bridges and doesn't use iron."^[2]

CB&I currently employs approximately 50,000 persons worldwide.

Corporate Headquarters and Leadership

The headquarters are located in the Hague, Netherlands.^[3] Current corporate officers are:^[4]

• President and CEO, Philip K. Asherman

• Executive Vice President and Chief Financial Officer, Ronald A. Ballschmiede

• Executive Vice President and Group President of Government Solutions, E. Chip Ray

• Executive Vice President of Global Systems, James W. Sabin

• Executive Vice President and Group President of Technology, Daniel M. McCarthy

• Executive Vice President and Chief Administration Officer, Beth A. Bailey

• Executive Vice President and Chief Legal Officer and Secretary, Richard E. Chandler

• Executive Vice President and Group President of Fabrication Services, Luke V. Scorsone

• Executive Vice President and Group President of Engineering, Construction and Maintenance, Patrick K. Mullen

• Senior Vice President, Fossil Power, Bobby R. Smith

History

CB&I was founded in 1889 in Chicago, Ill., USA, as Chicago Bridge & Iron Company, when Horace E. Horton, a bridge designer, agreed to merge business with George and William Wheelock of the Kansas City Bridge and Iron Company.

While initially involved in bridge design and construction, CB&I turned its focus to bulk liquid storage in the late 19th and early 20th centuries, coinciding with the western expansion of railroads across the United States and the discovery of oil in the Southwest. CB&I quickly became known for design engineering and field construction of elevated water storage tanks, above-ground tanks for storage of petroleum and refined products, refinery process vessels and other steel plate structures.

CB&I supported the expansion of oil exploration outside the U.S.A., starting operations in South America in 1924, in Asia two years later and in the Middle East in 1939.

During World War II, CB&I was selected to build Landing Ship Tanks (LSTs). CB&I ranked 92nd among U.S. corporations in the value of World War II military production contracts.^[5] LSTs carried troops and supplies to American and Allied troops fighting in Europe and the Pacific theaters. CB&I was chosen because of their reputation and skills, particularly welding. Since the coastal shipyards were busy building large vessels for the war effort, such as aircraft carriers, battleships, cruisers and destroyers, there was no alternative but to use the inland waterways and shipyards for the production of smaller ships.

Over the course of the company's history, CB&I has developed many technologies and achieved a number of industry milestones. These include the first floating-roof tank for the oil industry (1923), the first spherical pressure vessel (1923), the first double-wall liquid natural gas (LNG) storage tank (1958), the first site-assembled thick wall steel nuclear reactor vessel (1966), the first marine LNG storage and distribution terminal in the U.S.A. (1971), the world's largest steel water reservoir (1986), the world's largest vacuum distillation tower (1999) and the world's largest thermal energy storage tank (2009).

CB&I has been involved in a number of changes during the last two decades. It was acquired by Praxair in 1996; Praxair kept a chemical subsidiary and spun off CB&I as a Dutch-incorporated company the next year.^[2] CB&I headquarters moved from the Chicago to Houston, Texas in 2001 and then to the Hague, Netherlands when Texas enacted a Franchise Tax. Since 2000, it has acquired a number of companies. Most recently in 2012, CB&I agreed to buy The Shaw Group for about US$3 billion,^[6] completing the acquisition in February 2013.^[7] The company built a record number of bridges and other works that are listed on the National Register of Historic Places.^[8] These works include (with varying attribution):

• Boiling Nuclear Superheater (BONUS) Reactor Facility, Punta Higuero Sector, PR 413, Rincon, Puerto Rico (Chicago Bridge Co. Nuclear Engi), NRHP-listed^[8]
• One or more works in the Caplinger Mills Historic District, junction of Washington Ave. and the Sac River, Caplinger Mills, Mo. (Chicago Bridge Co.), NRHP-listed^[8]
• One or more works in the Colony Tower Complex, 6503 Dyke Rd. (MI 29), Clay Township, Pearl Beach, Mich. (Chicago Bridge and Iron Co.), NRHP-listed^[8]
• One or more works in the Colony Tower Complex (Boundary Increase), 6503 Dyke Rd. (MI 29), Clay Township, Pearl Beach, Mich. (Chicago Bridge and Iron Co.), NRHP-listed^[8]
• Cunningham Lane Bridge, Hansberry Lane, near Fancy Cr., Rockbridge, Wisc. (Chicago Bridge and Iron Co.), NRHP-listed^[8]
• Embarras River Bridge, Wade Township Rd. 164 over Embarras River, Newton, Ill. (Chicago Bridge Co.), NRHP-listed^[8]
• Evansville Standpipe, 288 N. 4th St., Evansville, Wisc. (Chicago Bridge & Iron Co.), NRHP-listed^[8]
• Frank's Ford Bridge, CR 121 over S. Branch of Zumbro River, Oronoco, Minn. (Chicago Bridge & Iron), NRHP-listed^[8]
• Hartford Water Tower, Pine & 1st. Sts., Hartford, Ark. (Chicago Bridge & Iron Co.), NRHP-listed^[8]
• Lake Ditch Bridge, junction of Lake Ditch and Lake Ditch Rd., Monrovia, Ind. (Chicago Bridge and Iron Co.), NRHP-listed^[8]
• Mahned Bridge, Mahned Rd. over the Leaf River, New Augusta, Miss. (Chicago Bridge and Iron Company), NRHP-listed^[8]
• McCrory Waterworks, junction of N. Fakes and W. Third, McCrory, Ark. (Chicago Bridge & Iron Works), NRHP-listed^[8]
• Mill Race Bridge, Pheasant Rd. over Turkey River, West Union, Iowa (Chicago Bridge and Iron Co.), NRHP-listed^[8]
• Monette Water Tower, SW. corner junction of AR 139 & Texie Ave., Monette, Ark. (Chicago Bridge & Iron), NRHP-listed^[8]
• Otranto Bridge, 480th Ave. over Big Cedar River, St. Ansgar, Iowa (Chicago Bridge and Iron Company), NRHP-listed^[8]
• Tyronza Water Tower, NW of junction of Main St. and Oliver St., Tryonza, Ark. (Chicago Bridge & Iron Works), NRHP-listed^[8]
• Water Street/Darden Road Bridge, Over St. Joseph River at Darden Rd., South Bend, Ind. (Chicago Bridge & Iron Co.), NRHP-listed^[8]
• West Water Tower and Ground Storage Tank, 310 11th Ave., Orion, Ill. (Chicago Bridge & Iron), NRHP-listed^[8]

CB&I Today

In late 2000, CB&I embarked on a series of acquisitions that have expanded its services to encompass the entire hydrocarbon industry, from conceptual design through technology licensing, engineering and construction, to final commissioning and technical services. CB&I acquired Lummus Global from ABB on November 19, 2007, adding approximately 3,000 employees to the CB&I payroll.^[9][10]

On July 30, 2012, CB&I announced the planned acquisition of The Shaw Group for a purchase price of US$3.04 billion.^[11][12] The acquisition was completed on February 13, 2013 and CB&I now employs nearly 50,000 people.^[13]

CB&I's global business groups are:

• Technology, which offers licensed process technologies, catalysts, specialized equipment and engineered products for use in petrochemical facilities, oil refineries and gas processing plants.

• Engineering, Construction & Maintenance, which provides engineering, procurement, fabrication and construction of major energy infrastructure facilities, as well as comprehensive and integrated maintenance services.

• Fabrication Services, which provides piping solutions and supplies storage tanks and vessels for the oil and gas, water and wastewater, mining and power generation industries.

• Government Solutions, which leads large, high-profile programs and projects – including design-build infrastructure projects – for federal, state and local governments.

Examples of recent major projects around the world include:

• Two LNG import terminals in the U.K. (South Hook LNG in Milford Haven, Wales - which will be the largest LNG terminal in Europe; and the Grain LNG import terminal near London)
• LNG liquefaction plant in Pampa Melchorita, Peru
• Natural gas processing and treating complex in Cabinda Province, Angola
• Crude vacuum and decoking unit expansion project for a refinery in Kansas, U.S.A.
• Golden Pass LNG import terminal near Sabine Pass, Texas, U.S.A.
• Large tankage facility at Shell Pearl GTL, Qatar
• Hydrotreating and sulfur removal/recovery facilities for several major U.S. refiners
• LNG re-gasification terminal at Quintero Bay, Chile, worth approximately $775 million
• Cat gas hydrotreater (CGHT) in El Paso, Texas, U.S.A.
• Hydrogen generation plant in Benecia, Calif., U.S.A.
• Propane dehydrogenation unit in Houston, Texas, U.S.A.
• Multiple Middle East storage facilities
• Oil sands storage tanks in Alberta, Canada
• In November 2004, CB&I was awarded a contract by one of the world's largest suppliers of wind turbines to fabricate 150 tubular steel support towers for wind turbines that were installed in wind farms in the western United States. The towers support 1.5-megawatt wind turbines, which are the largest wind turbines assembled in the United States and the most widely-sold and -tested megawatt-class wind turbines in the world.
• In April 2012, CB&I was awarded a contract for a petrochemicals expansion project in Geismar, Louisiana including the license and basic engineering for the ethylene technology.^[14]

References

External links

• Chicago Bridge & Iron Company
• Chicago Bridge & Iron Company SEC Filings