DALLAS, Nov. 5, 2008 (GLOBE NEWSWIRE) -- PMFG, Inc. (the "Company") (Nasdaq:PMFG) today announced that it has received its business license to operate a manufacturing plant in the People's Republic of China.
The plant, located in Zhenjiang City, will be the Company's first production facility on the China mainland. The planned 40,000 square foot leased facility is expected to go on-stream in mid-2009 and initially employ approximately 20 people. The plant will manufacture and supply separation, filtration and silencing equipment for China and other Asian markets. This plant will also fabricate nuclear steam dryer equipment for customers throughout China and represents PMFG's largest manufacturing investment to date outside of the U.S. Zhenjiang City is a large commercial and industrial center located near Shanghai.
Steam dryers or secondary separators are utilized as the final stage of water separation within a steam generator vessel for PWR nuclear power plants which will be the selected technology for Chinese nuclear power development. Peerless is the global leader, supplying steam dryers to the industry for over 40 years.
Peter J. Burlage, Chief Executive Officer, stated, "Developing a manufacturing presence in China will better enable the Company to support China's civil nuclear energy business, meet government goals, and at the same time enhance PMFG's business opportunities. We have staffed the facility with a group of professionals with previous experience working in China and we expect to continue to add to our organization, including highly skilled technicians and engineers, as we continue to ramp operations over the coming months. In addition, PMFG has maintained a regional sales office in Singapore for 17 years and we expect our sales team will play an integral role in supporting our China operation going forward."
According to the newly established China National Energy Bureau, China is planning to make nuclear power account for more than 5 percent of the country's power installed capacity by 2020, up from the previous goal of 4 percent. To develop clean energy, the country intends to expand the installed capacity of nuclear power, making it account for 4 percent of the national total power installed capacity by 2020. Currently, China has 11 nuclear generators with a combined installed capacity of 9.08 million kilowatts, only 1.3 percent of the country's total.
About PMFG
We are a leading provider of custom engineered systems and products designed to help ensure that the delivery of energy is safe, efficient and clean. We primarily serve the markets for power generation, natural gas infrastructure and petrochemical processing. Headquartered in Dallas, Texas, we market our systems and products worldwide.
Safe Harbor Under The Private Securities Litigation Reform Act of 1995
Certain statements contained in this press release that are not historical facts are forward-looking statements that involve a number of known and unknown risks, uncertainties and other factors that could cause the actual results to be materially different from those expressed or implied by such forward-looking statements. The words "anticipate," "preliminary," "expect," "believe," "intend" and similar expressions identify forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for these forward-looking statements. In order to comply with the terms of the safe harbor, the Company notes that a variety of factors could cause actual results to differ materially from the anticipated results expressed in these forward-looking statements. The risks and uncertainties that may affect the Company's results include the growth rate of the Company's revenue and market share; the receipt of new, and the non-termination of existing, contracts; the Company's ability to effectively manage its business functions while growing its business in a rapidly changing environment; risks associated with the Company's recent acquisition of Nitram Energy, including the integration of Nitram's operations with those of the Company and the significant indebtedness that the Company incurred in connection with the acquisition; the Company's ability to adapt and expand its services in such an environment; the quality of the Company's plans and strategies; and the Company's ability to execute such plans and strategies. Other important information regarding factors that may affect the Company's future performance is included in the public reports that the Company files with the Securities and Exchange Commission, including the information under Item 1A. "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended June 30, 2008. The Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances occurring after the date of this release, or to reflect the occurrence of other events. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The inclusion of any statement in this release does not constitute an admission by the Company or any other person that the events or circumstances described in such statement are material.