Dec 3 2010
MFRI, Inc. (NASDAQ: MFRI), announced today that its Perma-Pipe subsidiary has received over $21 million in new orders for its Auto-Therm®, Glass Syntactic Polyurethane, (GSPU) thermal insulation.
These new orders from major multinational and independent oil companies will be installed in the Gulf of Mexico and offshore Brazil.
Insulating sub-sea oil flow lines is a common practice to assure continuous flow and prevent paraffin or hydrate buildup on the internal pipe surfaces. Perma-Pipe's patented Auto-Therm® GSPU process has been used for over 100 miles of subsea pipelines at water depths of up to 9,600 feet. These new orders will be produced at Perma-Pipe's New Iberia, Louisiana facility. The work is expected to begin in the first quarter of 2011 and be completed before year end.
"We believe these orders demonstrate the confidence major multi-national and independent oil companies have in the quality of our process and our products," Fati Elgendy, President of Perma-Pipe, Inc. said.
"We are very pleased to receive these new orders and anticipate the requirement for insulated sub-sea flow lines will continue as oil companies tie-in sub-sea producing wells to new and existing platforms," said David Unger, Chairman and CEO of MFRI, Inc. Mr. Unger continued, "We also note that some of this business will be exported to Brazil, demonstrating the competitiveness of Perma-Pipe's U.S.A. based production."
Source: http://www.mfri.com/