ITT Corporation (NYSE: ITT) announced today that it will invest $22 million in its Seneca Falls, N.Y., manufacturing operations and Research and Development Laboratory to better serve the global oil and gas market.
The expansion was driven primarily by the growth of ITT and its Goulds Pumps brand in the global oil and gas industry, which requires highly engineered pump products for use in refinery, pipeline, production and other critical environments.
“We have been steadily growing our presence in the oil and gas market over the past several years, and this investment will further expand our manufacturing and testing capabilities to better serve our global customers,” said Robert J. Pagano Jr., president of ITT’s Industrial Process business. “This expansion will equip us for further growth in the oil and gas sector, as well as other important markets such as mining and chemicals, and will complement the expansion of our Research and Development Laboratory, which is currently underway.”
ITT also recently announced an agreement to acquire Bornemann Pumps, a leading global provider of highly engineered pumps and systems for the oil and gas industry known for its leading edge technologies. The acquisition would align strategically with the Industrial Process business, complement the Goulds Pumps brand and expand ITT’s presence in upstream oil and gas production. The transaction is expected to close by year-end subject to customary closing conditions, including appropriate regulatory approvals.
“One year ago, ITT announced the successful execution of the spin-offs of its defense and water businesses and became a global diversified multi-industrial company focused on the key end markets of energy, transportation and industrial,” Pagano said. “We are clearly seeing the benefits of that focus in the investments that are being made to help us grow our business for the long term.”
The expansion of the Seneca Falls operations will include construction of a 75,000-square-foot facility, focusing on high-energy pump packages. A new 8,000-hp state of the art performance test facility will be included to meet the expanding testing needs of global customers. The project is expected to be completed by the fourth quarter of 2013.
ITT is a diversified leading manufacturer of highly engineered critical components and customized technology solutions for growing industrial end-markets in energy infrastructure, electronics, aerospace and transportation. Building on its heritage of innovation, ITT partners with its customers to deliver enduring solutions to the key industries that underpin our modern way of life. Founded in 1920, ITT is headquartered in White Plains, N.Y., with employees in more than 30 countries and sales in a total of approximately 125 countries. The company generated 2011 revenues of $2.1 billion. For more information, visit www.itt.com.
Safe Harbor Statement
Certain material presented herein includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, future strategic plans and other statements that describe the company’s business strategy, outlook, objectives, plans, intentions or goals, and any discussion of future operating or financial performance. Whenever used, words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “target” and other terms of similar meaning are intended to identify such forward-looking statements. Forward-looking statements are uncertain and to some extent unpredictable, and involve known and unknown risks, uncertainties and other important factors that could cause actual results to differ materially from those expressed or implied in, or reasonably inferred from, such forward-looking statements. Factors that could cause results to differ materially from those anticipated include, but are not limited to: uncertainties with respect to our estimate of asbestos exposures, third-party recoveries and net cash flows; economic, political and social conditions in the countries in which we conduct our businesses; changes in U.S. or international sales and operations; contingencies related to actual or alleged environmental contamination, claims and concerns, and related third-party recoveries; decline in consumer spending; sales and revenues mix and pricing levels; availability of adequate union and non-union labor, commodities, supplies and raw materials; foreign currency exchange rate fluctuations; changes in local government regulations and compliance therewith; competition, industry capacity and production rates; declines in orders or sales as a result of industry or geographic downturn; ability of third parties, including our commercial partners, counterparties, financial institutions and insurers, to comply with their commitments to us; our ability to borrow and availability of liquidity sufficient to meet our needs; changes in the recoverability of goodwill or intangible assets; our ability to achieve stated synergies or cost savings from acquisitions or divestitures; the number of personal injury claims filed against the company or the degree of liability; our ability to effect restructuring and cost reduction programs and realize savings from such actions; changes in our effective tax rate as a result in changes in the geographic earnings mix, valuation allowances, tax examinations or disputes, tax authority rulings or changes in applicable tax laws; changes in technology; intellectual property matters; potential future postretirement benefit plan contributions and other employment and pension matters; susceptibility to market fluctuations and costs as a result of becoming a smaller, more focused company after the spin-off; changes in generally accepted accounting principles with the U.S.; and other factors set forth in our Annual Report on Form 10−K for the fiscal year ended December 31, 2011 and our other filings with the Securities and Exchange Commission.
The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.