- Three oil refinery orders upgrade existing Graham ejector system components
- New ethylene production capacity order for Graham surface condensers
BATAVIA, N.Y., May 30, 2014 (GLOBE NEWSWIRE) -- Graham Corporation (NYSE:GHM), a global business that designs, manufactures, and sells critical equipment for the oil refining, petrochemical and power industries, including the supply of components and raw materials to nuclear energy facilities, announced that it was recently awarded four orders for projects valued at approximately $10 million. The orders are for upgrades of Graham ejector system components at three oil refineries and an ethylene capacity expansion project in North America. Shipments are expected to occur during the next 9 to 15 months.
The three orders for equipment at existing North American oil refineries include replacement parts for two Canadian oil sands refineries and another oil refinery in the U.S. Due to the highly corrosive nature of feedstocks being processed, upgrading of Graham's critical components is required to enhance the throughput of these plants. These upgrades include improved metallurgy to help extend the amount of time between planned plant maintenance and inspection shut downs.
The fourth order is for a project adding ethylene production capacity on the U.S. Gulf Coast, as the abundance of readily available natural gas in North America resulting from recent technological advances has led to attractive feedstock prices. Due to its strong brand and reputation in the North American ethylene market, Graham has been selected to supply surface condensers for this project.
James R. Lines, Graham's President and Chief Executive Officer, commented, "Our large installed base in the North American oil refining market continues to drive orders as our customers attempt to reduce the frequency of plant shutdowns and change the feedstock refining capabilities of their facilities. We believe that our customers' choice of Graham for replacement equipment is a testament to our quality and reliability."
Mr. Lines added, "The technical advances in the extraction of shale gas and oil have lowered the prices and increased the supply of feedstocks for the chemical and petrochemical industry in North America. Our pipeline of bids is double the size of what we saw at the beginning of the last expansion cycle in 2004. We remain encouraged by the overall market fundamentals, our expectation for orders to be placed during the next 12-15 months and, importantly, our capabilities today to execute a higher level of orders than in our past."
ABOUT GRAHAM CORPORATION
With world-renowned engineering expertise in vacuum and heat transfer technology, Graham Corporation is a global designer, manufacturer and supplier of custom-engineered ejectors, pumps, condensers, vacuum systems and heat exchangers. For more than 77 years, Graham has built a reputation for top quality, reliable products and high-standards of customer service. Sold either as components or complete system solutions, the principal markets for Graham's equipment are energy, including oil and gas refining and nuclear and other power generation, chemical/petrochemical and other process industries. In addition, Graham's equipment can be found in diverse applications, such as metal refining, pulp and paper processing, shipbuilding, water heating, refrigeration, desalination, food processing, pharmaceutical, heating, ventilating and air conditioning, and in nuclear power installations, both inside the reactor vessel and outside the containment vessel.
Graham Corporation's subsidiary Energy Steel & Supply Co. is a leading code fabrication and specialty machining company dedicated exclusively to the nuclear power industry.
Graham Corporation's reach spans the globe. Its equipment is installed in facilities from North and South America to Europe, Asia, Africa and the Middle East. Graham routinely posts news and other important information on its website, www.graham-mfg.com, where additional comprehensive information on Graham Corporation and its subsidiaries can be found.
Safe Harbor Regarding Forward Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements are subject to risks, uncertainties and assumptions and are identified by words such as "expects," "estimates," "projects," "typically," "anticipates," "believes," "appears," "could," "plan," and other similar words. All statements addressing operating performance, events, or developments that Graham Corporation expects or anticipates will occur in the future, including but not limited to, the expected performance of Energy Steel & Supply Co, expected expansion and growth opportunities within the domestic and international nuclear power generation markets, anticipated revenue, the timing of conversion of backlog to sales, market presence, profit margins, tax rates, foreign sales operations, its ability to improve cost competitiveness, customer preferences, changes in market conditions in the industries in which it operates, changes in general economic conditions and customer behavior, forecasts regarding the timing and scope of the economic recovery in its markets, and its acquisition strategy are forward-looking statements. Because they are forward-looking, they should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties are more fully described in Graham Corporation's most recent Annual Report filed with the Securities and Exchange Commission, included under the heading entitled "Risk Factors."
Should one or more of these risks or uncertainties materialize, or should any of Graham Corporation's underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on Graham Corporation's forward-looking statements. Except as required by law, Graham Corporation disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this news release.