Graham Corporation Awarded $2 million for Middle East Petrochemical Plant
Monday December 12, 9:17 am ET
BATAVIA, N.Y.--(BUSINESS WIRE)--Dec. 12, 2005--Graham Corporation announced today that it received a letter of intent, valued at approximately $2 million, for two steam surface condensers to be installed in a new Kuwaiti ethylene production plant. Revenue from this project will be recognized on a percentage-of-completion basis and shipment is presently scheduled for the second fiscal quarter of 2007, which ends September 30, 2006.
Graham was awarded the contract by an Italian engineering, procurement and construction contractor ("EPC") in connection with a joint venture between a major U.S. chemical producer and a Kuwaiti petrochemical company. Ethylene, produced from oil or natural gas, is a building-block chemical used in the production of carpets, apparel, plastics, fibers, tires and numerous other consumer products. As global demand for these types of consumer products continues to rise, demand for ethylene and its by-products also rises. As a result, orders have continued to increase for Graham's custom designed, quality equipment for both new ethylene production plants and existing petrochemical plant upgrades, particularly in the Middle East and Asia.
Bill Johnson, President and CEO of Graham, commented, "Global ethylene demand is forecast to increase 5 to 6% per annum over the next 5 years, and some of the world's largest petrochemical plants are currently being developed in the Middle East to fill the capacity need. The Graham brand is well-known and respected in the Middle East, and we have a strong history of successfully working with EPCs on projects in this region. In the past several years, we have won a number of contracts for petrochemical plants in this part of the world."
ABOUT GRAHAM CORPORATION
With world-renowned engineering expertise in vacuum and heat transfer technology, Graham Corporation is a global designer, manufacturer and supplier of ejectors, pumps, condensers, vacuum systems and heat exchangers. Over the past 70 years, Graham Corporation has built a reputation for top quality, reliable products and high-standards of customer service. Sold either as components or complete system solutions, the principle markets for Graham's equipment are the petrochemical, oil refining and electric power generation industries, including cogeneration and geothermal plants. Graham equipment can be found in diverse applications, such as metal refining, pulp and paper processing, ship-building, water heating, refrigeration, desalination, food processing, drugs, heating, ventilating and air conditioning.
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. More information regarding Graham can be found at its website: www.graham-mfg.com
Source: Graham Corporation
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