Graham Corporation Awarded $6.6 Million in U.S. Gulf Coast Petrochemical Industry Orders
09 July 2018 - 11:00PM
Business Wire
- Replacing and upgrading equipment in
Graham’s installed base
- Adding new petrochemical capacity
driven by plentiful natural gas feedstock
Graham Corporation (NYSE:GHM), a global business that designs,
manufactures and sells critical equipment for the oil refining,
petrochemical, power and defense industries, today announced that
it received two orders totaling approximately $6.6 million, both
for the petrochemical industry in the U.S. Gulf Coast. Equipment
delivery for both orders is planned for the first half of fiscal
2020 and both will add to fiscal 2019 revenue.
The first order is for a Texas-based ethylene cracking plant
within the Company’s installed base, replacing and upgrading steam
surface condensers that Graham installed 25 years ago. The new
condensers will provide more corrosion resistant material. Graham
was well positioned to win this order as the supplier of the
original equipment.
The second order is for new petrochemical capacity at a
Texas-based plant producing fuel additives that reduce automobile
emissions. Graham will provide a process vacuum condenser.
James R. Lines, Graham’s President and Chief Executive Officer,
commented, “Low-cost natural gas, serving as the primary feedstock
to the petrochemical industry, is supporting massive investments in
North America that began in full force with the first wave about
five years ago. We are identifying projects for both new capacity
and revamping of existing facilities to improve output and
operational performance. We believe both of these projects are part
of a second wave of petrochemical investment in the region.”
He concluded, “While we don’t anticipate that the second wave
will be as strong as the first, we believe we are well positioned
to benefit from these petrochemical investments which we believe
are part of a multi-year campaign. As previously disclosed, we
project that Graham will realize strong revenue growth in fiscal
2019 and we are now further encouraged that we are also filling
backlog for fiscal 2020.”
ABOUT GRAHAM CORPORATION
Graham is a global business that designs, manufactures and sells
critical equipment for the energy, defense and
chemical/petrochemical industries. Energy markets include oil
refining, cogeneration, nuclear and alternative power. For the
defense industry, the Company’s equipment is used in nuclear
propulsion power systems for the U.S. Navy. Graham’s global brand
is built upon world-renowned engineering expertise in vacuum and
heat transfer technology, responsive and flexible service and
unsurpassed quality. Graham designs and manufactures
custom-engineered ejectors, vacuum pumping systems, surface
condensers and vacuum systems. Graham is also a leading nuclear
code accredited fabrication and specialty machining company. Graham
supplies components used inside reactor vessels and outside
containment vessels of nuclear power facilities. Graham’s equipment
can also be found in other diverse applications such as metal
refining, pulp and paper processing, water heating, refrigeration,
desalination, food processing, pharmaceutical, heating, ventilating
and air conditioning. Graham’s reach spans the globe and 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,” “confidence,” “projects,” “typically,” “outlook,”
“anticipates,” “believes,” “appears,” “could,” “opportunities,”
“seeking,” “plans,” “aim,” “pursuit,” 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, expected
expansion and growth opportunities within its domestic and
international 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 commodities
prices, the effect on its business of volatility in commodities
prices, changes in general economic conditions and customer
behavior, forecasts regarding the timing and scope of the economic
recovery in its markets, its acquisition and growth strategy and
the expected performance of Energy Steel & Supply Co. and its
operations in China and other international locations, 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20180709005102/en/
Graham CorporationJeffrey F. Glajch, 585-343-2216Vice
President – Finance and CFOjglajch@graham-mfg.comorKei Advisors
LLCDeborah K. Pawlowski,
716-843-3908dpawlowski@keiadvisors.comorKaren L. Howard,
716-843-3942khoward@keiadvisors.com
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