Graham Corporation has announced that it has been awarded a contract valued at $2.2 million to supply an ejector system for installation in a US Gulf Coast oil refinery. The project is a revamp of an existing Graham ejector system and will allow deep-cut vacuum distillation of crude oil. The use of deep-cut technology in the refining process results in a greater amount of crude oil being converted into higher quality and price transportation fuel.
James R. Lines, President and Chief Operating Officer of Graham, commented: "We have had a long relationship with this particular refiner and a long history of installations involving deep-cut technology. Our engineering staff worked with this customer for several years during the design phase, providing in-depth engineering and cost analysis. Our customers rely on our expertise to meet their customized objectives."
Mr. Lines continued, "Our contract wins and bookings for fiscal year 2008 have been strong, and we continue to believe that there are numerous opportunities for Graham to expand its business in the North American market. Numerous projects are in the planning stages for existing U.S. facilities, including upgrades to meet clean fuel regulations, revamps to process lower grade crude oil feedstock, and expansion of capacity in order to produce greater amounts of transportation fuel."
Revenue for this contract will be recognized on a percentage-of-completion basis, with the ejector system scheduled for shipment during the first quarter of fiscal 2008, which ends June 30, 2007.
