B&W is restructuring its power business that serves coal-fired generation. The changes include eliminating 200 positions in North America immediately and additional facility consolidations. B&W is also consolidating aftermarket and global new build activities for coal-fired generation into one segment that will be led by Mark Low, Senior Vice President of the new Power segment.
All renewable energy projects, including the B&W Vølund unit, will be consolidated into another segment, led by Paul Scavuzzo, Senior Vice President of the new Renewable segment. The new structure will allow for a Power segment focus on efficiency and support for the traditional customer base, while the Renewable segment focuses on renewable project execution and growth.
“B&W remains focused on executing our strategy,” said E. James Ferland, Chairman and Chief Executive Officer. “We are taking early action to ensure the coal-related business remains profitable in a challenging market while we grow our renewable energy business and diversify our portfolio through acquisition.”
The company said that the incremental revenue from the acquisition of cooling systems and services firm SPIG S.p.A. is expected to close in early third quarter and will approximately offset the other revenue impacts. B&W expects to pay €155 million ($171.2 million) for the company, which will operate under the name of Babcock & Wilcox SPIG.