Graham Corp. has secured orders totaling $19 million for three international projects in its crude oil refining market. Two projects are in Asia and one is in Latin America.
The Genesee County manufacture said one of the Asian projects is an expansion and modernization at a Southeast Asia refiner for the production of cleaner transportation fuels, while the other is for new capacity in the China crude oil refining market. The Latin American project is for a refiner and involves replacing equipment that Graham originally supplied in the mid-1970s.
The majority of the revenue associated with the three projects will be recognized in fiscal 2021, with minimal impact in fiscal 2020, officials said in a statement.
“These orders contribute to backlog for fiscal 2021 shipments,” Graham President and CEO James Lines said. “At this point in time, we are fortunate to have insight into our next fiscal year’s revenue and profitability potential. We continue to believe that fiscal 2021 will represent a third consecutive year of revenue and profit expansion for Graham.”
Graham is a global business based in Batavia that designs, manufactures and sells critical equipment for the energy, defense and chemical/petrochemical industries. Energy markets include oil refining, cogeneration and alternative power. The company’s equipment also is used in nuclear propulsion power systems for the U.S. Navy.
“We believe that our ability to garner demand originating from our installed base as well as from new global capacity investment is a distinct advantage for Graham. Each year, we derive approximately 30 percent to 40 percent of our revenue from our large installed base,” Lines said. “We continue to have strong participation in global crude oil refining markets with a high success rate for securing new orders.”
Last week, the Genesee County Economic Development Center approved roughly $210,000 in tax exemptions for Graham as the company invests more than $2 million across multiple projects at its Batavia campus. The construction will include an expansion of the company’s welding school, repurposing an existing 4,000-square-foot structure and construction of a 8,875-square-foot warehouse.
The project will start in the fall and be operational by the first quarter of 2020.
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