09-07-2018

Graham Corporation awarded gulf coast petrochemical orders

Graham Corporation, a global business that designs, manufactures and sells critical equipment for the oil refining, petrochemical, power and defense industries, today announced that it received two orders totaling approximately $6.6 million, both for the petrochemical industry in the U.S. Gulf Coast. Equipment delivery for both orders is planned for the first half of fiscal 2020 and both will add to fiscal 2019  revenue.

The first order is for a Texas-based ethylene cracking plant within the Company’s installed base, replacing and upgrading steam surface condensers that Graham installed 25 years ago. The new condensers will provide more corrosion resistant material. Graham was well positioned to win this order as the supplier of the original equipment.

The second order is for new petrochemical capacity at a Texas-based plant producing fuel additives that reduce automobile emissions. Graham  will provide a process vacuum condenser.

James R. Lines, Graham’s President and Chief Executive Officer, commented, “Low-cost natural gas, serving as the primary feedstock to  the petrochemical industry, is supporting massive investments in North America that began in full force with the first wave about five years ago. We are identifying projects for both new capacity and revamping of existing facilities to improve output and operational performance. We believe both of these projects are part of a second wave of  petrochemical investment in the region.”

He concluded, “While we don’t anticipate that the second wave will be as strong as the first, we believe we are well positioned to benefit from  these petrochemical investments which we believe are part of a multi-year campaign. As previously disclosed, we project that Graham will realize strong revenue growth in fiscal 2019 and we are now further encouraged that we are also filling backlog for fiscal 2020.”