Packaging
Dresser-Rand to Invest in Unique Technology and Associated Infrastructure at its Olean Operation
Thursday 12. June 2008 - 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.”