A subsidiary of Baton Rouge, LA-based Shaw Group Inc., a designer and builder of power plants, says it was notified last week of the work stoppage by its client, Mint Generation LLC, a subsidiary of Mirant Corp.
Under the notice, Mirant will instruct Shaw's Stone & Webster Inc. over the next few days as to which part of the work may proceed to completion or to a stable point of construction. Shaw says Mirant has indicated that it expects engineering will continue through completion.
Construction on the 270-megawatt, combined-cycle gas fired power plant began in October 2001. Completion was scheduled for June 2003. The 11-acre project is approximately 34% complete.
The Mint Farm project represented $93.1 million of Shaw's backlog as of July 31, 2002, and news of the stoppage--combined with another stoppage announcement earlier in the week--sent Shaw's stock into a tailspin late last week. The company's share price dropped from $17 to $14 on Thursday before bouncing back to close at $16.33. In early Monday trading, Shaw's share price stood at $16.35, down from a high of $36 in May.
The Mint Farm is named after the hundreds of acres of mint crops that graced the area from 1926 through the 1950's. Last year, the industrial park tripled in size when the Army Corps of Engineers issued a permit to grow the 125-acre park by another 240 acres. The 125-acre first phase of the park is about two-thirds full, with companies having acquired 80 acres of land.
Mirant's project was in the first phase. Other first-phase users include Toyocom of Tokyo, which is up and running in a $25-million synthetic crystal plant in the park. Also in the first phase, CB Richard Ellis is marketing for sale a 250,000-sf building owned by Maverick, which gained the asset when it purchased Prudential Steel and subsequently decided to move operations out of state.
Weyerhaeuser owns the land for the second phase and the City of Longview has the right to purchase the land and flip it to any interested party should one come along. Last week, Weyerhaeuser hired a team of Insignia brokers from Portland Seattle to market the second phase of the industrial park.
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