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25 March 2009

SOME of the world’s largest energy and process industry projects are set to benefit from improved performance this year following a raft of contract wins by global technology and service business John Crane.

John Crane, a division of Smiths Group, was awarded the orders to provide its industry-leading mechanical seals, engineered bearings, power transmission couplings, filtration system technologies and services on a number of major developments including oil and gas refineries and pipelines around the world.

The contracts include secure and potential orders comprising:

  • £24.3 million in aftermarket service contracts on oil and gas, petrochemical and process projects in the USA, Europe, Saudi Arabia, Kuwait, Africa and South Africa

  • £12.8 million in original equipment orders for mechanical seals and support systems – with a potential total value of £41 million over the next 25 years – for a variety of international projects. These include a downstream lube oil plant in Bahrain, which is part of a major expansion of an existing Bahrain Petroleum Company (BAPCO) refinery, and the first of three planned oil sands mining project expansions in Canada

  • £7.2 million on a number of major projects in South Africa including a deal to supply seals on two new power plants and a deal with Shell-owned consortium Sapref

  • £3.4 million for gas seal support systems for turbomachinery applications including an order in Japan and over £1.6 million to supply gas seal control systems on a major pipeline in India

  • £2 million for a three-year service and maintenance deal with Sakhalin Energy for oil and gas sealing equipment in Russia which builds on successful “first fit” equipment orders on the Sakhalin II Project – the world’s largest integrated oil and gas development

  • £1.75 million in orders for Indufil filtration systems – which includes a projected aftermarket value of £1 million – with a large Brazilian oil producer

Paul Cox, President, John Crane, said: “These wins illustrate the opportunities that we have been able to leverage through our robust growth strategy. We have had a highly successful year in competitive market conditions and our expanding range of products and services which utilise our extensive sales and service network have been very well received by our global customer base.

“We have seen the first major order for our new facility in Saudi Arabia and recently acquired Indufil is performing well using the John Crane global network. We see great scope to grow the business through this network, with the continued expansion of the product and service portfolio”, he added.

Two thirds of John Crane’s revenue is generated by aftermarket – maintenance and support - services, which are driven by the installation of products in the original equipment.

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