Graham Corp receives LoI valued at US$2 mln from Kuwait

13-Dec-05

Graham Corporation has 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 Q2-2007, 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. Graham's custom designed, quality equipment are for both new ethylene production plants and existing petrochemical plant upgrades, particularly in the Middle East and Asia.Global ethylene demand is forecast to increase 5 to 6% pa 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.