Flowserve Awarded Three Major Chinese Nuclear Valve Orders

Published on Wednesday, 04 August 2010 17:19 Written by TradersHuddle Staff

DALLAS-( Business Wire )-

Flowserve Corporation (NYSE: FLS), a leading provider of flow control products and services for the global infrastructure markets, today announced three orders totaling more than $10 million from China Nuclear Power Engineering Company Ltd. (CNPEC) for nuclear main steam isolation valves (MSIVs). The three orders were booked in the second quarter of 2010.

The valves are intended to be used at three facilities in China: Yangjiang Units 3 and 4, Fangchenggang Units 1 and 2, and Ningde Units 3 and 4. The type CPR1000 units are scheduled to begin commercial operation between 2014 and 2016, each with a capacity of 1,000 megawatts.

“China remains an important aspect of our global growth strategy and these orders demonstrate our continued leadership position in this market,” said Tom Pajonas, president, Flowserve Flow Control Division.

Flowserve MSIVs are specially designed, large gate valves with fast-acting, stored energy actuators. MSIVs are designed to be installed in a plant’s nuclear steam supply system where their primary function is to close within 3 to 5 seconds in the unlikely event of a rupture in the steam piping. The valves will be manufactured at the Flowserve facility in Raleigh, North Carolina, and are scheduled to be delivered in 2011 and 2012.

“Flowserve has been a trusted supplier to the Chinese nuclear industry for more than 20 years when we provided the valves used in some of the country’s first nuclear power plants,” said Pajonas. “We have the experience and broad product portfolio to meet the needs of our nuclear customers in China.”

In April, Flowserve announced a separate multimillion-dollar order from CNPEC for main steam isolation valves, main feedwater isolation valves and feedwater motor-operated valves to be used at Taishan Units 1 and 2.

About China Nuclear Power Engineering Company Ltd.

China Nuclear Power Engineering Company Ltd. is the first company focusing on professional nuclear engineering management in China. Its business includes contracting, construction, management, consultation and supervision on industrial and civil projects (i.e., nuclear power, conventional power, heating supply, gas, harbor, highway, hydraulic, feedwater and water discharge projects); engineering technology services and economic information consultation; project bidding agency; import and export of products and technology; procurement and sales of electric equipment and material. For more information, please visit www.cgnpc.com.cn.

About Flowserve Corp.

Flowserve Corp. is one of the world’s leading providers of fluid motion and control products and services. Operating in more than 55 countries, the company produces engineered and industrial pumps, seals and valves, as well as a range of related flow management services. More information about Flowserve can be obtained by visiting the company’s Web site at www.flowserve.com.

SAFE HARBOR STATEMENT: This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Words or phrases such as, “may,” “should,” “expects,” “could,” “intends,” “plans,” “anticipates,” “estimates,” “believes,” “predicts” or other similar expressions are intended to identify forward-looking statements, which include, without limitation, earnings forecasts, statements relating to our business strategy and statements of expectations, beliefs, future plans and strategies and anticipated developments concerning our industry, business, operations and financial performance and condition.

The forward-looking statements included in this news release are based on our current expectations, projections, estimates and assumptions. These statements are only predictions, not guarantees. Such forward-looking statements are subject to numerous risks and uncertainties that are difficult to predict. These risks and uncertainties may cause actual results to differ materially from what is forecast in such forward-looking statements, and include, without limitation, the following: a portion of our bookings may not lead to completed sales, and our ability to convert bookings into revenues at acceptable profit margins; changes in the global financial markets and the availability of capital and the potential for unexpected cancellations or delays of customer orders in our reported backlog; our dependence on our customers’ ability to make required capital investment and maintenance expenditures; risks associated with cost overruns on fixed-fee projects and in taking customer orders for large complex custom engineered products; the substantial dependence of our sales on the success of the oil and gas, chemical, power generation and water management industries; the adverse impact of volatile raw materials prices on our products and operating margins; our ability to execute and realize the expected financial benefits from our strategic realignment initiatives; economic, political and other risks associated with our international operations, including military actions or trade embargoes that could affect customer markets, particularly Middle Eastern markets and global oil and gas producers, and non-compliance with U.S. export/re-export control, foreign corrupt practice laws, economic sanctions and import laws and regulations; our exposure to fluctuations in foreign currency exchange rates, particularly in hyperinflationary countries such as Venezuela; our furnishing of products and services to nuclear power plant facilities; potential adverse consequences resulting from litigation to which we are a party, such as litigation involving asbestos-containing material claims; a foreign government investigation regarding our participation in the United Nations Oil-for-Food Program; expectations regarding acquisitions and the integration of acquired businesses (including the Valbart Srl acquisition); our foreign subsidiaries autonomously conducting limited business operations and sales in certain countries identified by the U.S. State Department as state sponsors of terrorism; our relative geographical profitability and its impact on our utilization of deferred tax assets, including foreign tax credits; the potential adverse impact of an impairment in the carrying value of goodwill or other intangible assets; our dependence upon third-party suppliers whose failure to perform timely could adversely affect our business operations; the highly competitive nature of the markets in which we operate; environmental compliance costs and liabilities; potential work stoppages and other labor matters; our inability to protect our intellectual property in the U.S., as well as in foreign countries; obligations under our defined benefit pension plans; and other factors described from time to time in our filings with the Securities and Exchange Commission.

All forward-looking statements included in this news release are based on information available to us on the date hereof, and we assume no obligation to update any forward-looking statement.

Flowserve CorporationInvestor Contact:Paul Fehlman, 972-443-6517vice president, financial planning & analysis and investor relationsorMedia Contact:Steve Boone, 972-443-6644director, global communications & public affairs