SPX Receives $124 Million Contract for Key Products for new Kusile Power Station in South Africa
CHARLOTTE, NC - October 28, 2008 - SPX Corporation (NYSE: SPW) today announced that its thermal equipment and services affiliate has been awarded a $124 million contract with Hitachi Power Africa (Pty) Ltd , a subsidiary of Hitachi Power Europe GmbH (HPE) to provide key products for the new Kusile Power Station in South Africa.
"Our highly efficient filters and airpreheaters will help reduce emissions and enhance the productivity of Kusile," said Drew Ladau, SPX segment president. "We're pleased to work with Hitachi Power Africa in helping South Africa meet its increasing demand for electric power."
Kusile, formerly referred to as Project Bravo, is the second of two coal-fired power stations being built by Eskom, South Africa's state-owned utility company. Eskom has awarded a contract to a consortium of Hitachi Power Europe and its subsidiary Hitachi Power Africa to manufacture, build and supply steam generators for the approximately 4,800 megawatt station, which will be constructed in Mpumalanga province, east of Johannesburg, South Africa.
Under the present contract, SPX has agreed to provide Balcke Duerr branded pulse jet fabric filters and airpreheaters, as well as manufacture pressure parts for the boilers at the plant. Eskom expects the first generating unit at the Kusile station to be completed in late 2012, followed by the completion of additional units every six months. SPX has previously reported that it also will provide feedwater heaters and air-cooled condensers for this facility.
The first coal-fired plant to be built in South Africa in 20 years is the 4,788 megawatt Medupi Power Station, also owned by Eskom, which is being built near Lephalale, in the Limpopo province. SPX has previously announced that it will supply Balcke Duerr branded pulse jet fabric filters and airpreheaters, and manufacture pressure parts for six 800-megawatt boilers at the Medupi station. The first generating unit is expected to be completed in 2011.
SPX established its manufacturing presence in Nigel, South Africa, in 1970. The company expanded its manufacturing capacity at Nigel earlier this year.
SPX's South African subsidiary, the recipient of this contract award, has a Black Economic Empowerment minority shareholder, which holds an interest of 25.1%.
SPX Corporation is a Fortune 500 multi-industry manufacturing leader. The company offers highly-specialized engineered solutions to solve critical problems for customers.
SPX is focused on providing solutions that support the expansion of global infrastructure, with particular emphasis on the growing worldwide demand for energy and power. Its innovative product portfolio, containing many energy efficient products, includes cooling systems for power plants throughout the world; custom engineered process equipment that assists a variety of flow processes including food and beverage manufacturing, oil and gas exploration, distribution and refinement and power generation; handheld diagnostic tools that aid in vehicle maintenance and repair; and power transformers that regulate voltage for electrical transmission and distribution by utility companies.
SPX is headquartered in Charlotte, North Carolina and employs more than 17,000 people worldwide in over 35 countries. Visit www.spx.com. (NYSE: SPW)
Certain statements in this press release may be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. Please refer to our public filings for a discussion of certain important factors that relate to forward-looking statements contained in this press release. The word "scheduled" and similar expressions identify forward-looking statements. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Statements in the press release speak only as of the date of this press release, and SPX disclaims any responsibility to update or revise such statements.
Contact:
Jeremy W. Smeltser (Investors)
704-752-4478
E-mail: investor@spx.com
Jennifer H. Epstein (Media)
704-752-7403
E-mail: jennifer.epstein@spx.com