Dresser-Rand to Invest in Unique Technology and Associated Infrastructure at
its Olean Operation
HOUSTON, June 11 /PRNewswire-FirstCall/ -- Dresser-Rand Group Inc.
("Dresser-Rand" or the "Company") (NYSE: DRC), a global supplier of rotating
equipment, announced today that the Company will make two investments at the
Olean, New York location, which is home to the Company's largest manufacturing
facility. One investment is to construct additional test capability
associated with its compressor-separator technologies. The second is for a
new technology center to house about 500 engineers and technologists. The
capital expenditure for the two projects is expected to be approximately $25
million. Both projects will commence immediately. The test facility is
expected to be operational later this year, while the occupancy date for the
Tech Center is scheduled for early 2009.
Dresser-Rand has developed new integrated separation and centrifugal
compression technology, which it believes will represent a unique and superior
value proposition for its clients into the future. Dresser-Rand's fully
Integrated Compression System(TM) (ICS(TM)) uses high-efficiency DATUM(R)
centrifugal compressor technology driven by a high speed, close-coupled motor
mated with an integrated gas-liquid separation unit with process gas coolers,
all packaged into a single module. It is designed to be used onshore and
aboard fixed and floating offshore platforms as well as, ultimately, in subsea
production modules. The Company believes this is game changing technology,
which goes beyond "best-in-class" and is actually the "only-in-class" for this
type of equipment.
With its integrated approach, the ICS compression module can reduce the
total footprint exhibited by traditional modules by up to 65%, while cutting
the weight approximately in half. Integration of advanced motor driven
centrifugal separation technology gives the ICS the ability to handle any dry
or wet gas application. Because the compressor, motor, separation system, and
gas coolers are contained in the same process module, the system can be
installed as a single unit, eliminating the need for large, stand-alone
separators. As opportunities for subsea compression emerge, the Company
expects the ICS system to offer the best solutions for providing real value to
clients with seabed production operations.
The new technology center will allow the Company to co-locate all parties
associated with product design and application along with the technical
support for assembly and test of the Olean products. It also will house the
worldwide research & development staff and the client facing group that
project manages all aspects of the client contracts at the Olean facility.
The move to one location is expected to substantially improve communications,
productivity, and client satisfaction. The existence of a new
state-of-the-art Technology Center will also enhance Dresser-Rand's ability to
attract and retain future technical employees to New York State in general and
the city of Olean specifically.
Vincent R. Volpe Jr., President, and CEO, said, "We are very pleased to
announce the company's final approval of these two strategic investments in
Dresser-Rand's Olean site. We have worked hard to create an environment in New
York State where we can be successful and continue to invest in technology and
associated infrastructure initiatives that will help us compete in a very
global market. We appreciate the support received from Governor Paterson
through Empire State Development and from our state legislator, Senator Cathy
Young, Assemblyman Joe Giglio and both county and city officials. In
addition, we believe the new, contemporary labor agreement covering
approximately 500 workers at the Olean facility engenders an environment
conducive to investment. This agreement is market competitive, with contract
language that allows for continuous operating improvements through more
flexible and modern work rules."
Bill Pienta, international representative for the Steelworkers, said, "We
are very pleased that the successful conclusion to the recent contract
negotiations between the Steelworkers and Dresser-Rand has helped to
facilitate and encourage the company's decision to invest in two new major
projects: the ICS test stand and the new Technology Center. The ICS test
stand could have been built in many of Dresser-Rand's worldwide locations,
however, we believe that Dresser-Rand has a very talented and dedicated
workforce who can and will be competitive in Olean, New York with the
continued investment in technology and jobs created by the ICS program."
"We are extremely proud of our employees at the Olean operation and their
willingness to accept changes necessary to enhance the long-term
competitiveness of the business," said Jean-Francois Chevrier, Dresser-Rand's
Vice President and General Manager, North American Operations. "The workforce
here in the southern tier of New York State is hard working, productive and
highly skilled. Today's announcements reflect the Company's confidence in its
workforce and its commitment to remaining a premier employer and good
corporate citizen in New York State."
Dresser-Rand is among the largest suppliers of rotating equipment
solutions to the worldwide oil, gas, petrochemical, and process industries.
The Company operates manufacturing facilities in the United States, France,
Germany, Norway, India, and China, and maintains a network of 28 service and
support centers covering more than 140 countries.
This news release may contain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995, including,
but not limited to, statements with respect to planned or proposed repurchase
of shares of common stock. Forward-looking statements include, without
limitation, the Company's plans, objectives, goals, strategies, future events,
future revenue, or performance, capital expenditures, financing needs, plans,
or intentions relating to acquisitions, business trends, executive
compensation, and other information that is not historical information. The
words "anticipates", "believes", "expects", "intends", and similar expressions
identify such forward-looking statements. Although the Company believes that
such statements are based on reasonable assumptions, these forward-looking
statements are subject to numerous factors, risks, and uncertainties that
could cause actual outcomes and results to be materially different from those
projected. These factors, risks and uncertainties include, among others, the
following: potential for material weaknesses in its internal controls;
economic or industry downturns; its inability to implement its business
strategy to increase aftermarket parts and services revenue; competition in
its markets; failure to complete or achieve the expected benefits from any
future acquisitions; economic, political, currency and other risks associated
with international sales and operations; fluctuations in currencies and
volatility in exchange rates; loss of senior management; environmental
compliance costs and liabilities; failure to maintain safety performance
acceptable to its clients; failure to negotiate new collective bargaining
agreements; unexpected product claims and regulations; infringement on its
intellectual property or infringement on others' intellectual property;
difficulty in implementing an information management system; and the Company's
brand name may be confused with others. These and other risks are discussed
in detail in the Company's filings with the Securities and Exchange Commission
at www.sec.gov. Actual results, performance, or achievements could differ
materially from those expressed in, or implied by, the forward-looking
statements. The Company can give no assurances that any of the events
anticipated by the forward-looking statements will occur or, if any of them
does, what impact they will have on results of operations and financial
condition. The Company undertakes no obligation to update or revise
forward-looking statements, which may be made to reflect events or
circumstances that arise after the date made or to reflect the occurrence of
unanticipated events. For information about Dresser-Rand, go to its website
at www.dresser-rand.com.
DRC-FIN
SOURCE Dresser-Rand Group Inc.
Blaise Derrico, Director Investor Relations, +1-713-973-5497
