Sypris Wins Awards From Two High-Pressure Energy Projects
February 08 2021 - 7:30AM
Business Wire
Anchor Field Deepwater Development; Pipeline
Emissions Reduction
Sypris Technologies, Inc., a subsidiary of Sypris Solutions,
Inc. (Nasdaq/GM: SYPR), announced today that it has recently
received orders for its Tube Turns® D-bolt and Tool-less® specialty
closures for use in high-pressure oil and gas applications,
including the Anchor Field development project in the Gulf of
Mexico and the planned upgrade of a natural gas pipeline system in
North America. Production for both awards will begin immediately
and are expected to be completed prior to year-end. Terms of the
purchases were not disclosed.
The Anchor Field development project is located in the Green
Canyon area, approximately 140 miles off the coast of Louisiana in
the Gulf of Mexico in water depths of up to 5,000 feet. The initial
development of the project will require an investment of
approximately $5.7 billion. Stage 1 of the Anchor Field development
consists of a seven-well subsea development and semi-submersible
floating production unit. First oil is anticipated in 2024.
According to news sources, this will be the first-ever,
high-pressure development in the deepwater gulf. The planned
facility has a design capacity of 75,000 barrels of crude oil and
28 million cubic feet of natural gas per day. Sypris will provide
specialty, high-pressure Tube Turns® D-bolt closures that are rated
up to 4,885 psi and use Inconel Alloy 625, a nickel-based
superalloy that possesses high strength properties and resistance
to elevated temperatures.
The Company also received an award to supply the closures for a
multiple compressor system upgrade on a natural gas transmission
pipeline system located in North America. The project is part of an
EPA program to reduce emissions from aging equipment to help reduce
the negative impact on the ozone layer. Sypris will supply
specialty Tube Turns® Tool-less® closures that are 72” in diameter,
weigh 11.25 tons each and are rated to a pressure of 1,200 psi.
Brett Keener, General Manager of Sypris Technologies, commented,
"Sypris continues to be a leader in supplying engineered products
to support major energy projects around the globe. We are able to
meet the demanding requirements of these type of projects by
leveraging our extensive experience in engineering and
manufacturing high-quality products. We are proud to be a part of
enhancing energy infrastructure and contributing to environmental
protection."
Sypris Technologies, Inc. is a global leader in the manufacture
of custom engineered closures for high-pressure, critical
applications serving the oil and gas pipeline infrastructure,
hydrocarbon and petrochemical processing, and utility industry
since 1927. Headquartered in Louisville, Kentucky, the Company's
products are used worldwide, and can be found in projects ranging
from the Trans-Alaska Pipeline and Strategic Petroleum Reserve in
the U.S. to the Tengiz Oil Field in Kazakhstan and the Bonny Island
Gas Field in Nigeria. For more information about the Company, visit
its Web site at www.sypris.com.
Forward Looking Statements
This press release contains “forward-looking” statements
within the meaning of the federal securities laws. Forward-looking
statements include our plans and expectations of future financial
and operational performance. Such statements may relate to
projections of the company’s revenue, earnings, and other financial
and operational measures, our liquidity, our ability to mitigate or
manage disruptions posed by COVID-19, and the impact of COVID-19
and economic conditions on our future operations, among other
matters.
Each forward-looking statement herein is subject to risks and
uncertainties, as detailed in our most recent Form 10-K and Form
10-Q and other SEC filings.
Briefly, we currently believe that such risks also include the
following: the impact of COVID-19 and economic conditions on our
future operations; possible public policy response to the pandemic,
including legislation or restrictions that may impact our
operations or supply chain; our failure to successfully complete
final contract negotiations with regard to our announced contract
“orders”, “wins” or “awards”; our failure to achieve additional
orders for existing projects; our failure to achieve and maintain
profitability on a timely basis by steadily increasing our revenues
from profitable contracts with a diversified group of customers,
which would cause us to continue to use existing cash resources or
other assets to fund operating losses; dependence on, retention or
recruitment of key employees and distribution of our human capital;
the cost, quality, timeliness, efficiency and yield of our
operations and capital investments, including the impact of
tariffs, product recalls or related liabilities, employee training,
working capital, production schedules, cycle times, scrap rates,
injuries, wages, overtime costs, freight or expediting costs;
disputes or litigation involving governmental, supplier, customer,
employee, creditor, product liability or environmental claims; our
inability to develop new or improved products or new markets for
our products; cost, quality and availability of raw materials such
as steel, component parts, natural gas or utilities; our reliance
on a few key customers, third party vendors and sub-suppliers;
unanticipated or uninsured disasters, public health crises, losses
or business risks; unanticipated or uninsured product liability
claims; volatility of our customers’ forecasts, scheduling demands
and production levels which negatively impact our operational
capacity and our effectiveness to integrate new customers or
suppliers, and in turn cause increases in our inventory and working
capital levels; our inability to patent or otherwise protect our
inventions or other intellectual property from potential
competitors; adverse impacts of new technologies or other
competitive pressures which increase our costs or erode our
margins; legal rights to operate, manage our work force or import
and export as needed; inaccurate data about markets, customers or
business conditions; or unknown risks and uncertainties. We
undertake no obligation to update our forward-looking statements,
except as may be required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20210208005056/en/
Brett H. Keener General Manager (502)
774-6271
Sypris Solutions (NASDAQ:SYPR)
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