The board of directors of major engineering contractor TechnipFMC has approved plans to split into two independent, publicly traded companies.

Chairman and CEO Doug Pferdehirt said management and the board of directors have continuously evaluated strategic options and, after a comprehensive review, determined that it is in the best interest of TechnipFMC and all stakeholders to create two diversified pure-play leaders. “We are confident that the separation would allow both businesses to thrive independently within their sectors, enabling each to unlock significant additional value,” he added

The separation will be structured as a spin-off of the contractor’s Onshore/Offshore business, which is headquartered in Paris, France. This company, with the placeholder name SpinCo, will be a leading pure-play engineering & construction player with about 15,000 employees and estimated revenue of $6 billion, said TechnipFMC.

The Onshore/Offshore segment offers a range of project services including technology licensing, management and engineering, procurement and construction in the gas, refining, petrochemicals, polymers, fertilizers, life sciences and renewables sectors, among others.

TechnipFMC said SpinCo will be uniquely positioned to capture liquefied natural gas (LNG) opportunities as well as benefiting from a leadership position in the downstream market and future growth opportunities in biofuels, green chemistry and other energy alternatives.

Catherine MacGregor, currently president, new ventures, will be CEO of SpinCo, which will be incorporated in the Netherlands with headquarters in Paris and a listing on the Euronext Paris exchange. TechnipFMC added that key shareholder Bpifrance “strongly” supports the transaction.

Once the split is completed, which is anticipated in the first half of 2020, all outstanding shares of SpinCo will be distributed to TechnipFMC shareholders.

The remaining standalone company – called RemainCo for now – will be a fully integrated technology and services provider with around 22,000 employees and estimated revenue of $7 billion. Pferdehirt will continue in his role as chairman and CEO. RemainCo will also stay incorporated in the UK with headquarters in Houston, USA, and dual listing on both the New York and Paris stock exchanges.

TechnipFMC was formed in January 2017 from the merger of French group Technip with US-based FMC Technologies. The contractor said that the group’s “exceptional” performance since then has made the proposed spin-off possible.