Fluor Overseas Entity Created From Mergers
Fluor Corp., outlining yet another step in its restructuring plan, said Tuesday that it will merge certain foreign operations of its Fluor Engineers and Daniel International subsidiaries into a new company to be called Fluor-Daniel International.
A Fluor spokesman said formation of the new entity is under way now and ought to be completed by year-end.
The new firm, which will absorb about 2,700 Fluor employees, will oversee construction projects in Europe, Africa and the Middle East from its London office, while projects in the Pacific Rim, including China, will be administered from Fluor’s Hong Kong office.
Operations in the Western Hemisphere, including those in South America, will continue to be separately administered by the Fluor Engineers and Daniel International subsidiaries, the spokesman said.
In a prepared statement, David S. Tappan, Fluor chairman, said separating Fluor’s engineering and construction operations by region “will decentralize our operations and bring decision-making closer to our clients.”
The spokesman said that while the move would have a streamlining effect, no layoffs will result. He said company-wide employment levels will remain stable at 29,000, down sharply from the 43,000 Fluor employed in 1983.
“Fluor’s expertise on big projects coupled with Daniel’s capability, particularly in non-energy projects, will improve their competitive position in going after contracts on a worldwide scale,” said Herbert Hart, an analyst with S. G. Warburg, Rowe & Pitman, Akroyd Inc. in San Francisco. “It would be a logical move.”
Fluor expects to lose $600 million during 1985, but the Greenville, S.C.-based Daniel, purchased in 1977 for $218 million, has been one of the company’s few profitable operations, partly because its open-shop status has helped it to be competitive.
