DALLAS, Nov. 27, 2012 (GLOBE NEWSWIRE) -- PMFG, Inc. (Nasdaq:PMFG) today announced it was awarded two orders for separation equipment totaling $1.9 million.
The first sales order is for steam separators to be installed at a nuclear power project in China. This represents the first such order since the Chinese government placed their nuclear expansion program on hold following the tsunami in Fukushima, Japan. These units will be manufactured at our facility in Zhenjiang, China, with delivery scheduled for fall 2013. These units are expected to be the first of several similar orders which will be released over the fiscal year to serve new nuclear power plant projects in China and at existing nuclear power plants in the U.S. and France as part of plant relicensing and modernization projects. Steam dryers or secondary separators are utilized as the final stage of water separation within a reactor vessel (BWR plants) or steam generator vessel (PWR plants). PMFG has been a leader in providing equipment and technology to the nuclear industry for over 30 years.
The second sales order relates to the previously announced contract award by the U.S. Navy's Naval Surface Warfare Center, Carderock Division (NSWCCD) to provide the air inlet moisture separation/filtration systems to replace the existing systems on the Arleigh Burke (DDG 51) class. The five-year, multiple-award, indefinite delivery, indefinite quantity firm-fixed-price contract could have a potential value of approximately $13.7 million, if all options are exercised. While aggregate potential contract value has been announced, we will only enter amounts into backlog upon receipt of sales orders, which we expect to occur over the next 3-4 years. In general, delivery will be within 9 to 11 months from the receipt of the sales order.
PMFG's Chief Executive Officer, Peter Burlage, stated, "This order for steam separators represents an important step forward in restarting nuclear power plant construction projects halted in China following the events in Fukushima, Japan. We are in the process of expanding our manufacturing capacity in China to meet the anticipated demand for nuclear steam separators locally. We also are preparing for the expected demand for replacement dryers due to the re-commissioning of nuclear power plants in the U.S. and France. We expect that new nuclear power plant construction, life extension and upgrading will continue to be an important contributor to our business in future periods."
We are a leading provider of custom-engineered systems and products designed to help ensure that the delivery of energy is safe, efficient and clean. We primarily serve the markets for power generation, natural gas infrastructure and petrochemical processing. Headquartered in Dallas, Texas, we market our systems and products worldwide.
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Certain statements contained in this press release that are not historical facts are forward-looking statements that involve a number of known and unknown risks, uncertainties and other factors that could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievement expressed or implied by such forward-looking statements. The words "anticipate," "expect," "believe," "intend" and similar expressions identify forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for such forward-looking statements. In order to comply with the terms of the safe harbor, the Company notes that a variety of factors could cause actual results and experience to differ materially from the anticipated results or other expectations expressed in such forward-looking statements. These risks and uncertainties include the Company's ability to raise additional capital and to execute its plans and strategies. Other important information regarding factors that may affect the Company's future performance is included in the public reports that the Company files with the SEC, including the information under Item 1A. "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2012. The Company undertakes no obligation to revise any forward-looking statements or to update them to reflect events or circumstances occurring after the date of this release, or to reflect the occurrence of unanticipated events. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The inclusion of any statement in this release does not constitute an admission by the Company or any other person that the events or circumstances described in such statement are material.
CONTACT: For Further Information Contact: Mr. Peter J. Burlage, Chief Executive Officer Mr. Ronald L. McCrummen, Chief Financial Officer PMFG, Inc. 14651 North Dallas Parkway, Suite 500 Dallas, Texas 75254 Phone: (214) 357-6181 http://www.peerlessmfg.com Or Kevin McGrath Cameron Associates (212) 245-4577 Kevin@cameronassoc.com