MFRI Announces That Its Perma-Pipe Saudi Arabia Subsidiary Secured New Orders
Totaling Over $27 Million
NILES, IL -- (Marketwire) -- 02/05/13 -- MFRI, Inc. (NASDAQ: MFRI)
announced today that its Perma-Pipe Saudi Arabia subsidiary has
received new orders exceeding $27 million for the first phase of the
district cooling system expansion project at King Abdul-Aziz
International ("KAIA") airport in Jeddah, Saudi Arabia. These orders
are in addition to the $23 million announced in the Company's press
release of November 23, 2012 bringing the total of major project work
in Saudi Arabia to nearly $50 million.
The King Abdul-Aziz International Airport is one of the largest
projects in the recent history of the Saudi Arabia Kingdom. The
passenger terminal complex comprises an area over 6.7 million square
feet (622,000 square meters) with 46 gates, 96 boarding bridges
including double deck access for the A380 Airbus. The total
facilities span over 25,000 acres (100 square kilometers) including
the chilled water distribution system, utility plants, utility
tunnel, plant nursery, and transportation center with integrated rail
Fati Elgendy, President of Perma-Pipe, said: "This order represents a
further validation of our strategy to expand our footprint to the
rapidly developing Saudi market. Delivery is expected to start in the
first fiscal quarter of 2013 and be completed in the fourth quarter.
We plan to produce the insulated pipe, spools and fittings at our new
factory in Dammam, Saudi Arabia with important support from our
United Arab Emirates ("U.A.E.") factory. Our team has been working
for over one year pursuing this very prestigious order. The KAIA
project coupled with work on expansion of the Holy Haram Mosque in
Mecca positions us very well for a strong 2013 in the Middle East."
"We have spent two years investing in direct in-country capacity in
Saudi Arabia. The Jeddah Airport is the largest single project we
have received since we started our business activities in the Middle
East some 7 years ago. Perma-Pipe has already successfully completed
the supply of insulated piping systems to several other major
airports in the U.A.E., Qatar, and Oman. Our best in class products,
engineering skills and support services have proven to b
successful formula in establishing Perma-Pipe as the market leader in
the region," said Bradley Mautner, CEO of MFRI.
MFRI, Inc. is a multi-line company engaged in the following
businesses: pre-insulated specialty piping systems for oil and gas
gathering, district heating and cooling and other applications;
custom designed industrial filtration products to remove particulates
from dry gas streams; industrial process cooling equipment to remove
heat from molding, printing and other industrial processes; and
installation of heating, ventilation and air conditioning for large
Statements and other information contained in this announcement which
can be identified by the use of forward-looking terminology such as
"anticipate," "may," "will," "expect," "continue," "remain,"
"intend," "aim," "should," "prospects," "could," "position,"
"future," "potential," "believes," "plans," "likely," "seems," and
"probable," or the negative thereof or other variations thereon or
comparable terminology, constitute "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934 as
amended and are subject to the safe harbors created thereby. These
statements should be considered as subject to the many risks and
uncertainties that exist in the Company's operations and business
environment. Such risks and uncertainties include, but are not
limited to, economic conditions, market demand and pricing,
competitive and cost factors, raw material availability and prices,
global interest rates, currency exchange rates, labor relations and
other risk factors.
This announcement may also contain certain non-GAAP financial
information that management believes is helpful in understanding our
business. This financial information should not be considered as an
alternative to net (loss) income or any other GAAP measurement of
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