PPIH Perma Pipe International Holdings Inc

CUSIP No 552721102 Page 2 of 5 Pages
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1. Name of reporting person
 S.S. or I.R.S. identification no. of above person

 Babson Capital Management LLC
 51-0504477
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2. Check the appropriate box if a member of a group
 (a)( )
 (b)( X )
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3. SEC use only
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4. Citizenship or place of organization
 Delaware
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 5. Sole Voting Power

 655,000
 Number of -----------------------------
 shares 6. Shared Voting Power
 beneficially
 owned by 0
 each -----------------------------
 Reporting 7. Sole Dispositive Power
 person
 with 655,000
 -----------------------------
8. Shared Dispositive Power
 0
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9. Aggregate amount beneficially owned by each reporting person

 655,000
 ---------------------------------------------------------------
10. Check if the aggregate amount in row (9) excludes certain shares*

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11. Percent of class represented by amount in row 9
 9.63%
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12. Type of Reporting person
 IA













CUSIP No 552721102 Page 3 of 5 Pages
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SCHEDULE 13G

ITEM 1(A): NAME OF ISSUER:

 MFRI, INC.

1(B): ADDRESS OF ISSUER'S PRINCIPAL EXECUTIVE OFFICES:

 7720 Lehigh Avenue
 Niles, IL 60714

TEM 2(A): NAME OF PERSON FILING:

 Babson Capital Management LLC (Babson Capital)


ITEM 2(B): ADDRESS OF PRINCIPAL BUSINESS OFFICE:

 470 Atlantic Avenue
 Boston, MA 02210-2208


ITEM 2(C): CITIZENSHIP:

 See Item 4 of Cover Page

ITEM 2(D): TITLE OF CLASS OF SECURITIES:

 See Cover Page

ITEM 2(E): CUSIP NUMBER:

 See Cover Page

ITEM 3: TYPE OF REPORTING PERSON:

If this statement is filed pursuant to Sections 240.13d-1 (b)
or 240.13d-2 (b) or (c), check whether the filing person is a:

(e) [x] An investment adviser in accordance with
 Section 240.13d-1 (b) (1) (ii) (E)

ITEM 4: OWNERSHIP:

(a)AMOUNT BENEFICIALLY OWNED: Babson Capital, in its capacity as
investment adviser, may be deemed the beneficial owner of 655,000
shares of common stock of the Issuer which are owned by investment
advisory client(s).




CUSIP No 552721102 Page 4 of 5 Pages
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(b) PERCENT OF CLASS: 9.63%

(c) For information on voting and dispositive power with respect to the
above listed shares, see Items 5 - 8 of Cover Page.


ITEM 5: OWNERSHIP OF FIVE PERCENT OR LESS OF A CLASS:

Not Applicable

ITEM 6: OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF ANOTHER PERSON:

Cobbs Wharf 9.63%


ITEM 7: IDENTIFICATION AND CLASSIFICATION OF THE SUBSIDIARY WHICH
 ACQUIRED THE SECURITY BEING REPORTED ON BY THE PARENT HOLDING
 COMPANY:

 Not Applicable

ITEM 8: IDENTIFICATION AND CLASSIFICATION OF MEMBERS OF THE GROUP:
 Not Applicable

ITEM 9: NOTICE OF DISSOLUTION OF GROUP:

 Not Applicable

ITEM 10: CERTIFICATION:


By signing below I certify that, to the best of my knowledge and
belief, the securities referred to above were acquired in the
ordinary course of business and were not acquired for the purpose of
and do not have the effect of changing or influencing the control of
the issuer of such securities and were not acquired in connection
with or as a participant in any transaction having such purpose or
effect.

SIGNATURE:

After reasonable inquiry and to the best of my knowledge and
belief, I certify that the information set forth in this statement
is true, complete and correct.

DATE: February 13, 2009



Signature: /s/ James Masur
 James Masur
 Chief Compliance Officer


CUSIP No 552721102 Page 5 of 5 Pages
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February 13, 2009


Securities and Exchange Commission
Operations Center
Attn: Stop 0-7
6432 General Green Way
Alexandria, VA 22312-2413

Re: Schedule 13G On Behalf Of MFRI, INC.
 For The Year Ending December 31, 2008

Dear Sir or Madam:

Babson Capital Management LLC is filing today an amendment to
Schedule 13G through the EDGAR system as required by Section
240.13d-1(b) to reflect a change in beneficial ownership of
the outstanding stock of the above-mentioned issuer.

Please note that the shares as to which this Schedule is filed were
owned by various investment advisory clients of Babson Capital
which may have been deemed a beneficial owner of the shares only by virtue
of the direct or indirect investment discretion it possessed pursuant
to the provisions of investment advisory agreements with such clients.

A copy of the Schedule 13G is being sent to the issuer as required
by Rule 13d-7.

Comments or questions concerning the above may be directed to the
undersigned at (617) 761-3834.

Sincerely,





//James Masur//
 James Masur
Chief Compliance Officer