The agreement also contemplates Foster Wheeler utilising Wuxi as a major supplier for projects located outside of China. The value of the initial license fee will be included in the company's third-quarter 2006 bookings and future royalty payments will be recorded over the life of the agreement.

"This license agreement opens up additional markets for Foster Wheeler in China and further reinforces Foster Wheeler's overall capability and cost-competitiveness for projects in China, Asia and worldwide," said David J. Parham, executive vice president, Global Sales and Marketing, Foster Wheeler Global Power Group.

"This is a strategically important agreement for both companies. We have been working successfully with Wuxi Huaguang for ten years, during which time it has been a primary subcontractor to Foster Wheeler for projects in China and worldwide. Wuxi Huaguang Boiler is a recognized presence in the power industry in China, having placed over 32,000MWe of capacity in service over the last ten years."

"We are delighted that Wuxi Huaguang Boiler will become one of the leading CFB boiler manufacturers in China through this technology cooperation with Foster Wheeler," said He Xu Liang, president of Wuxi Huaguang Boiler.