Perma-Pipe, Inc., Subsidiary of MFRI, Inc., Announces Grand Opening of New Manufacturing Plant in Dammam, Saudi Arabia
NILES, IL -- (Marketwire) -- 04/17/12 -- MFRI, Inc. (MFRI) (NASDAQ: MFRI) announced today that on April 3, 2012 its Perma-Pipe subsidiary held the grand opening of its newest manufacturing facility for pre-insulated pipe systems. The ribbon cutting was performed by His Royal Highness Prince Muhammad bin Fahd bin Abdulaziz Al Saud, Governor of the Eastern Province and His Excellency Dr. Tawfig Al Rabiah, Minister of Commerce and Industry.
The event, attended by over 500 celebrants, marked the beginning of production at this world-class manufacturing facility built to serve the growing Saudi Arabian market. The Saudi Government has embarked on an ambitious, decade-long initiative to invest $1 trillion in infrastructure development and industrialization of their country.
The new 80,000 sq. ft. (7,400 sq. meter) state-of-the-art manufacturing facility is located on 11 acres (45,000 sq. meter) in a key industrial area of Saudi Arabia's Eastern Province. It will serve the special requirements of the oil and gas industry as well as the rapidly growing market for district cooling networks in the Kingdom of Saudi Arabia, (KSA). Perma-Pipe Saudi Arabia, (PPSA), will feature Perma-Pipe's Xtru-Therm automated spray polyurethane insulation and several jacketing systems including polyethylene, metal and fiberglass reinforced plastics offering a comprehensive product range. PPSA will also be equipped to custom manufacture pipe spools, steam systems and a complete range of pre-insulated fittings. The integrated, automated, high throughput operation is designed to handle pipe sizes from 2 inches (50 mm) up to 72 inches (1800 mm) in diameter.
"I am very pleased to see this major strategic initiative become a reality. I especially want to acknowledge the extraordinary efforts of Tomas Stein, Managing Director of Perma-Pipe Saudi Arabia and Avin Gidwani, President of Perma-Pipe Middle East, who along with their teams brought this facility to life. Our in-country investment will permit us to address the largest market in the six country Gulf Cooperation Council very effectively. Also, in conjunction with our facility in the United Arab Emirates, we are well positioned to serve customers throughout the region," said Fati Elgendy, President of Perma-Pipe, Inc.
"Even with the severe downturn in the UAE market which negatively impacted our results in 2011, I am very proud of our accomplishments in the Middle East since our start there seven years ago. Expanding our focus to the Saudi Arabian market in a rapid fashion fits well with the overall implementation of our business strategy at Perma-Pipe. We will continue to reach new markets by providing outstanding customer service and best in class products at competitive prices. This investment further supports our plan for continued growth in rapidly emerging markets," said David Unger, Chairman and CEO of MFRI, Inc.
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 performance.