Encompass Services Awarded $45 Million Maintenance Contract at the Dow Chemical Seadrift Plant

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Researched by Industrialinfo.com (Industrial Information Resources, Inc.; Houston, Texas). The Dow Chemical Company (NYSE: DOW) (Midland, Michigan) has awarded a three year $45 Million on-site maintenance contract to Encompass Services Corporation (NYSE: ESR) (Houston, Texas). In a previous release (PR Newswire Sept. 5, 2001) Joe Ivey, Encompass president and chief executive officer said, Our excellent performance and safety records played a key role in helping us secure significant additional business at this Dow facility.

Encompass will provide approximately 300 employees to perform routine maintenance, operational support and small capital project construction services to Dow's Seadrift, Texas plant. Dow acquired the Seadrift plant, which produces polymers, monomers and 11 other chemicals, plastics and catalysts, through its recent merger with Union Carbide Corporation.

Encompass currently provides on-site electrical, mechanical and specialty work at other Dow locations including those at Freeport, Texas and Pittsburg, California. Their newest contract with Dow includes an evergreen clause that will allow for year-to-year renewal upon completion of the initial three-year period.

Dow is a leading science and technology company that provides innovative chemical, plastic and agricultural products and services to more than 170 countries. With annual sales of $30 billion, Dow employs approximately 50,000 employees.

Encompass Services Corporation has annual revenues of $4.4 billion and employs 34,000 people. Considered one of the nation's largest providers of facilities systems and services, Encompass has six distinct operating groups composed of mechanical services, electrical technologies, network solutions, industrial services, cleaning systems and residential services.