CB&I

CB&I. Chicago Bridge & Iron Company, commonly known as CB&I, was a global engineering, procurement and construction firm with a storied history in industrial infrastructure. Originally founded for bridge building, the company evolved into a world leader in the design and construction of large-scale storage tanks and complex facilities for the energy sector. Its expertise spanned liquefied natural gas terminals, petroleum refineries, and nuclear power plants, executing major projects across six continents before its acquisition.

History

The company was founded in 1889 by Horace E. Horton in Chicago, initially focusing on the construction of bridges across the Midwestern United States. A pivotal shift occurred in the early 20th century when it began applying its structural steel expertise to the burgeoning oil industry, building its first field-welded storage tank in 1913. This established its core competency in metal plate structures. Through strategic acquisitions, such as the 1930 purchase of the Graver Tank & Manufacturing Company, CB&I expanded its tank business and entered new markets. Post-World War II, the company capitalized on the global expansion of the petroleum industry, undertaking major projects in Venezuela, Saudi Arabia, and other key regions. The latter half of the century saw further diversification into sectors like liquefied natural gas and nuclear power, including work on containment structures for utilities like the Tennessee Valley Authority.

Operations and services

CB&I's operations were organized around providing integrated engineering, procurement, fabrication, and construction services. A cornerstone of its business was the design and construction of above-ground storage tanks for products ranging from crude oil to cryogenic liquids like LNG. The company maintained a global network of fabrication facilities, notably large shops in The Netherlands and Southeast Asia, which produced modularized components. Its service portfolio included detailed process design for complex facilities such as petrochemical plants and gas processing units. Furthermore, CB&I offered specialized services for the nuclear power industry, including the construction of steel containment vessels and large nuclear components under contracts from entities like the United States Department of Energy.

Major projects

The company's project legacy includes some of the world's largest and most technically challenging energy infrastructures. It was a primary contractor for the BASF chemical complex in Ludwigshafen, Germany, and built massive LNG storage tanks for the Qatargas projects in Ras Laffan. In the United States, CB&I constructed the strategic Petroleum Reserve storage facilities and the containment vessel for the Shearon Harris Nuclear Power Plant in North Carolina. Internationally, it executed the refinery expansion for Petróleos de Venezuela S.A. in Paraguana and major components of the Gorgon gas project in Western Australia. The firm also played a significant role in the cleanup and waste management efforts at the Hanford Site.

Corporate structure and leadership

For most of its history, CB&I operated as a publicly traded company on the New York Stock Exchange under the symbol CBI. Its corporate headquarters were relocated from Chicago to The Woodlands, Texas, in 2006. The company was traditionally led by a Chairman and Chief Executive Officer, with notable leaders including Philip K. Asherman. It was organized into operating segments such as Engineering & Construction, Fabrication Services, and Technology. Following a series of financial challenges on large fixed-price contracts, the company was acquired in 2018 by McDermott International, a rival engineering and construction firm, in a transaction valued at approximately six billion dollars, effectively ending its independent corporate existence.

Financial performance

As an independent entity, CB&I reported annual revenues that regularly exceeded ten billion dollars during peak periods, driven by its backlog of large international projects. Its financial health was closely tied to the capital expenditure cycles of the global oil and gas industry and the power sector. The company faced significant financial strain in the mid-2010s due to cost overruns and schedule delays on several major projects, including the construction of two nuclear reactors for SCANA Corporation at the V.C. Summer Nuclear Generating Station. These issues led to substantial write-downs, a declining credit rating from agencies like Moody's Investors Service, and a plummeting stock price, which precipitated its eventual sale to McDermott International.

Category:Engineering companies of the United States Category:Companies based in Texas Category:Defunct construction companies