Graham Corporation has announced that it has been awarded purchase orders totaling approximately $1.5 million for 14 ejector systems to be installed in two US ethanol plants being constructed by an agriculture processing company. The two large scale facilities are expected to increase total US ethanol production by approximately 10 percent, producing more than 500 million gallons of ethanol per year.
James R. Lines, Graham's President and Chief Operating Officer, comments: "We have been expanding our presence in, and supplying equipment to, alternative energy markets, including the ethanol and biodiesel markets, for several years. This is the largest order we have received in the ethanol market, and as planned capacity grows in the coming years, we expect to see greater future demand for our vacuum and heat transfer products for new facilities."
Mr. Lines concludes: "We believe that our long history of supplying quality equipment to the agricultural processing industry gives us a competitive advantage as this industry moves towards production of alternative energy sources. Orders of this magnitude for ejector systems require less Graham engineering and project management resources than those of comparable value for oil refinery projects, resulting in quicker production throughput and higher margins."
Delivery of the ejector systems is scheduled for the third quarter of fiscal year 2008, ending December 31, 2007 with revenue being recognised on a percentage of completion basis.
