Graham Corporation announced today that it has been awarded two orders valued at approximately $5 million for two ejector systems to be installed in oil refineries located in the Middle East and in the U.S. Gulf Coast Region.
Each ejector system will be used in the refining of base oils, which are primarily lubricating oils used in automobile, truck and other internal combustion engines to imrpove fuel economy. The first order is expected to be shipped to a refinery in the Middle East in December 2009, while the second order is planned for shipment in Graham's fiscal fourth quarter ending March 31, 2010. Substantially all of the equipment will be produced in the Company's Batavia, New York facility.
James R. Lines, Graham's President and Chief Executive Officer, commented, "The increasing global demad for vehicles with higher fuel economy is driving the requirement for lubricants that reduce engine friction and heat, providing opportunities for Graham even in a weak economic environment. Despite current market conditions, we believe that the long-term demand for energy has not changed and that our pipeline for potential new orders remains robust. However, predicting when orders will be placed remains difficult, and we expect that order placement will remain sluggish until the global economic outlook improves. In the meantime, we remain focused on winning new business in order to capture greater marketshare while at the same time controlling our expenses and improving our productivity."