Graham Corporation (NYSE Amex: GHM) a manufacturer of critical equipment for the energy, petrochemical and other process industries, today announced that it has received approximately $6 million in orders for vacuum systems that will be installed at facilities in the U.S., Africa and South America.
Two of the vacuum system orders originate from the renewable energy market and will be installed at geothermal power generation plants in Africa and the U.S. with capacities of 2.5 megawatts and 50 megawatts, respectively. The African order is expected to ship in the third quarter of Graham’s fiscal year beginning April 1, 2010, referred to as fiscal year 2011, and the U.S. order is scheduled to ship in the fourth quarter of fiscal year 2011. A new refinery with a capacity of 160,000 barrels per day that is being built in South America will require the third vacuum system, which is expected to ship in the fourth quarter of fiscal year 2011.
James R. Lines, Graham’s President and Chief Executive Officer, commented, “We believe there is a strong and growing pipeline of alternative energy projects, including in areas such as geothermal, waste-to-energy, solar and cogeneration. Although it is a different competitive environment than the refining and petrochemical markets, Graham has successfully supplied products and services to the alternative energy market for many years. We understand customer requirements in this arena and believe the alternative energy market provides opportunities for our full product line, including vacuum systems, steam surface condensers and heat transfer products.”
“As we have previously indicated, we expect that the continued expansion of emerging markets will drive demand for refining and petrochemical processing capacity outside the U.S. We believe that Asia, specifically China, and the Middle East will continue to lead that expansion. Moreover, South America is also becoming active, driven by significant multi-year investment plans by state-owned refineries. Graham enjoys excellent long-term relations with refiners in South America, and we believe that the win we are announcing today is a testament to the service and value we continue to provide our South American customers,” Mr. Lines concluded.