Graham Corporation Awarded $2.5M U.S. Refinery Expansion Order

Batavia, NY - Graham Corporation announced recently that it has received a purchase order valued at more than $2.5M for a liquid ring compressor package. The equipment will be installed as part of a U.S. Gulf Coast refinery expansion project and is the second contract Graham has won for this particular project. The previous order, for a $9.5M ejector/liquid ring pump combination vacuum system, was announced in July 2007. The refinery expansion will increase production by more than 300,000 barrels per day of gasoline, diesel and aviation fuel, making it one of the largest refineries in the U.S. and among the largest in the world.

James R. Lines, President of Graham Corporation, commented, "Several pieces of Graham equipment are already installed in this refinery's existing operations. Repeat customers, such as this end-user, value our knowledge and experience as well as our strong custom engineering capabilities and quality products.

He continued, "This is the fourth large contract announcement we have made thus far in this calendar year for equipment destined to be installed in U.S. oil refineries. We see robust future opportunities in the North American markets as capital spending continues for U.S. refining capacity expansions and modifications to existing equipment in order to process alternate crude oil feedstock. We also see a potential surge in opportunities over the next one to three years from planned production expansions to convert Canadian oil sands into synthetic crude oil."

Delivery for this purchase order is planned for the second quarter of fiscal year 2009 ending September 2008, and revenue will be recognized on percentage of completion basis. It is not anticipated that this order will contribute to Graham's current fiscal year sales.

SOURCE: Graham Corporation