08-12-2017

Graham Corporation awarded North American refining industry orders

Graham Corporation, a global business that designs, manufactures and sells critical equipment for the oil refining, petrochemical, power and defence industries, announced today that it received two orders totalling approximately $17 million, both for ejector systems in the North American refining industry. Equipment delivery for both orders is scheduled for the second quarter of fiscal 2019.

Equipment that the Company engineers and manufactures for the refining market often includes large ejector systems that operate in highly corrosive environments. Both of these orders involve the replacement of currently installed Graham equipment, which is required due to corrosion caused by harsh operating environments. In one instance, the components will be replaced with the same metallurgy. In the other instance, the end user chose replacement equipment with a special metallurgy that offers increased corrosion resistance to extend operating life.

James R. Lines, Graham’s President and Chief Executive Officer, commented, “We are benefiting from our large installed base, where we have been working closely with our customers in the field. These two orders, along with the previously announced orders this quarter, are for existing rather than new installations. Refiners are focused on improving operational performance and reliability of their current process units. We expect that our large installed base will continue to benefit us as the refining industry seeks to maximize capabilities of its existing asset base.”

He continued, “While we are pleased with these orders and have seen an uptick in activity from the refining market during this quarter, we do not believe that these recent successes reflect a sustained shift in capital spending within the refining industry.”