Global construction contractor Fluor has announced plans to divest its construction equipment rental business AMECO, as a result of a strategic review process.
The company will also sell off its government business, as well as surplus real estate and non-core investments, in an effort to generate a total of US$1 billion and improve the financial stability of the company.
Fluor will retain an interest in rental through its industrial maintenance business Stork, which includes a rental division, EQIN, based in the Netherlands. EQIN rents temporary air, light, power, tool and welding equipment in the Netherlands, Belgium and Germany. It has 11 rental locations.
Carlos Hernandez, CEO of Fluor Corporation, said, “The strategic direction we are pursuing as a result of this process builds upon Fluor’s premier competitive position in our core markets in which we expect to deliver sustainable growth, strong cash flow and attractive returns to investors.
“With this review behind us, we are focusing more than ever before on long-term value creation and operational excellence, and we remain dedicated to moving Fluor forward for the benefit of all of our stakeholders.”
AMECO ranked equal 32nd with All Family of Companies in the 2019 IRN100 listing of the world’s largest rental companies by revenue. In 2018, AMECO reported revenues of $349 million.
This move by Fluor follows two consecutive quarterly losses for the company, which employs around 53,000 staff and reported revenues of $19.2 billion in 2018.