SOURCE: MFRI

MFRI

December 01, 2010 16:15 ET

MFRI Announces Over $21 Million in New Orders for Insulating Deepwater Oil Flow Lines

NILES, IL--(Marketwire - December 1, 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." 

MFRI, Inc. is a leading manufacturer of specialty piping systems, industrial filtration products and industrial process cooling equipment. For more information visit the Company's website www.mfri.com or contact the company directly.

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.