BATAVIA, NY, June 6, 2008 Ė Graham Corporation (AMEX: GHM) announced today that it has been awarded orders valued at over $10 million for two ejector systems and three surface condensers to be installed in four international oil refineries located in South Korea, China, Malaysia and Russia.
South Korean Refinery Expansion
The first order is for an ejector system to be installed in a South Korean oil refinery that is expanding its capacity to process more plentiful and lower-priced heavy crude oil. It is the second ejector system that Graham will supply to this end user. The userís previous system was shipped by Graham in early 2007. A portion of the ejector system fabrication will be outsourced to a local manufacturer, with the balance produced in Grahamís Batavia, New York facility. The ejector system is scheduled for shipment in the first quarter of fiscal 2010, which ends June 30, 2009.
Malaysia Refinery Revamp
The second order is for an ejector system to be installed in a Malaysian oil refinery that is revamping and upgrading its existing equipment in order to expand performance and increase capacity. The equipment will replace a Graham ejector system that was originally supplied in the late 1990ís. Grahamís ability to deliver the ejector system according to the customerís timeline is crucial, as the refiner has a planned shut-down period to upgrade the facility. The system is scheduled for shipment in the fourth quarter of fiscal 2009, which ends March 31, 2009.
Chinese and Russian Oil Refinery Orders
A U.S. based turbomachinery original equipment manufacturer, or OEM, placed two orders for a total of three steam surface condensers. Two of the ordered surface condensers will be installed in a Chinese oil refinery expanding production of transportation fuels. The third surface condenser will support a hydrocracking process of crude oil at an existing oil refinery located in Russia. The condenser systems are scheduled to be manufactured in Grahamís Batavia, New York facility and are scheduled for shipment in the second quarter of fiscal 2010, which ends September 30, 2009.
James R. Lines, Grahamís President and Chief Executive Officer, commented, ďThe global need to increase transportation fuel processing capacity and upgrade existing facilities to process a wider variety of crude oil feedstock is continuing to provide us opportunities to grow. The Graham brand is well-regarded in the international refinery and petrochemical markets, and the increase in projects is leading to a much larger installed base of Graham equipment around the world.Ē