Velan Inc.
TSX : VLN

Velan Inc.

May 19, 2015 13:11 ET

Velan Awarded Major Nuclear Valve Contracts in China Worth US$34 Million (EUR30 Million)

MONTREAL, QUEBEC--(Marketwired - May 19, 2015) - (TSX:VLN) - Velan S.A.S., Velan Inc.'s wholly-owned subsidiary located in Lyon, France, has been awarded important contracts for the supply of nuclear class valves to China Nuclear Power Engineering Corporation ("CNPEC"), China Nuclear Power Engineering Co. Ltd. ("CNPE"), China Nuclear Energy Industry Corporation ("CNEIC"), CHINERGY and HUANENG. These nuclear valve orders represent a sales value of about US$34 million (EUR30 million) of which US$15.6 million was recorded in backlog prior to our 2015 fiscal year-end. The valves are scheduled for delivery from 2016 until 2018.

For CNPEC, the orders are for valves for the two new ACPR1000 design nuclear plants of HongYangHe Units 5 and 6. The scope of supply consists of nuclear classified forged valves, electric operated gate valves, globe valves with pneumatic actuators and swing check valves.

For CNPE and CNEIC, who are both part of the China National Nuclear Corporation ("CNNC"), Velan S.A.S. received orders for the supply of nuclear classified gate and globe valves for the two new nuclear pilot project power plants based on the new Hualong One (ACP 1000) technology to be built at FuQing Units 5 and 6. The scope of supply is mainly high-pressure forged valves complete with electric or pneumatic actuators for service inside nuclear containment.

Velan S.A.S. also signed contracts with CHINERGY and HUANENG for the supply of nuclear classified bellows seal globe valves for the new High Temperature Reactor ("C-HTR") built in Shidaowan, China.

Michel Monier, Director of Nuclear-China at Velan, stated: "Chinese authorities have just announced plans to resume the construction of new nuclear power plants, which had been suspended following the Fukushima accident. Velan is honored to contribute to these new projects, which have all been designed by Chinese nuclear institutes. With these new orders, Velan valves have now been selected for 49 Chinese nuclear power plants."

Tom Velan, CEO of Velan Inc., stated: "All these new designs, Hualong One, C-HTR and ACPR1000 are "First of Kind" 3rd and 4th Generation nuclear plants designed in China. These new advanced reactor designs will represent an important part of future projects, not only on the Chinese domestic market, but also for export projects. The Velan group is dedicated to supporting these advanced nuclear reactors by providing advanced valve designs that are helping to increase the safety level of new generation nuclear power plants."

About Velan: Velan Inc. (www.velan.com) is a world-leading manufacturer of industrial valves with sales of US$455.7 million in its last reported fiscal year. The Company employs over 2,000 people and has manufacturing plants in 10 countries. Velan Inc. is a public company with its shares listed on the Toronto Stock Exchange under the symbol VLN.

Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of the Company. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in foreign currency conversion rates and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.

Contact Information

  • Tom Velan
    Chief Executive Officer
    (514) 748-7743
    (514) 748-8635 (FAX)

    John D. Ball
    Chief Financial Officer
    (514) 748-7743
    (514) 748-8635 (FAX)
    www.velan.com