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31 July 2008

John Crane, part of the global technology business Smiths Group, today announces a major new supplier frame agreement with Siemens AG that is expected to secure business worth some €10 million over the next two years.

With the potential for future extensions, the deal provides for John Crane gas seal equipment to be supplied via Siemens to a range of turbo-machinery applications in the Middle East, Caspian, Asia Pacific and South American regions. It also includes the supply of aftermarket services.

John Crane has underlined its commitment to the agreement by developing a new standard gas seal product designed to meet Siemens’ specific operating parameters with the added benefit of service support from John Crane’s unparalleled international network of customer support centres.

Paul Cox, President designate, John Crane said: “Many end-users of Siemens’ equipment will already have benefitted from the excellent performance of John Crane seals and the support which the company provides, and this will help Siemens enhance its own reputation with these customers.”

The agreement will also allow John Crane and Siemens to collaborate more closely than previously, leading to the development of innovative new solutions to market requirements. Environmental considerations are expected to play a key role, especially in such areas as the current energy market demand for greater efficiency with lower emissions.

John Crane has also extended the scope of the offering it makes to Siemens to cover other areas of turbo-machinery equipment such as speciality engineered bearings and filters.

From 1 August 2008, the Smiths Specialty Engineering division will be disbanded. John Crane, currently managed and operated as two separate units by teams in the UK and the US, will be unified under Paul Cox as president and will have its headquarters at the Morton Grove facility close to Chicago, Illinois. The other Specialty Engineering businesses, Smiths Interconnect and Flex-Tek, will continue to be run from their existing US locations. The presidents of all three businesses will report directly to the Group Chief Executive.

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