According to Thomson Reuters, Flowerserve Corporation (FLS), a leading manufacturer and aftermarket service provider of comprehensive flow control systems has received a multi-million dollar order from Korea Hydro & Nuclear Power Co. Ltd (KHNP).
KHNP has placed orders for Flowerserve’s main steam isolation valves (MSIVs) and main feedwater isolation valves (MFIVs), meant for use at its Shin-Ulchin 1 and 2 nuclear power plant’s pressurized water reactors. These reactors are currently under construction and scheduled for commercial operation by 2015 and 2016, respectively. Flowerserve is the fourth largest industrial valve supplier in the world.
Main steam isolation valves provide steam from the source (reactor, steam generator, or steam separator) to the turbine, while main feedwater isolation valves are used to feed water to the boilers for steam generation. Both the large gate valves of the company, which have fast-acting stored energy actuators, are specifically designed to close within 3-5 seconds.
Isolation valves belong to the second largest segment (in terms of revenue contribution) of Flowerserve: Fluid Control Division (FCD) which designs, manufactures and distributes a broad portfolio of engineered-to-order and configured-to-order isolation valves, control valves, valve automation products, boiler controls and related services.
The isolation valves supplied by the company permit real-time system analysis, system warnings and remote indication of asset health. These technologies have been developed in response to the growing demand for reduced maintenance, improved process control efficiency and digital communications at the plant level.
Some of the company’s biggest competitors in the FCD segment are Tyco International Ltd. (TYC), Emerson Electric Co. (EMR) and General Electric Company (GE).
Bookings for the first quarter ended March 31, 2011 increased $58.4 million, or 18.3%, as compared with the same period in 2010. This increase included currency benefits of approximately $3 million. The increase in bookings was primarily attributable to continued recovery in the oil and gas industry, primarily due to the distributor business in North America, increased bookings in the chemical industry in Europe and general industries in Russia.
Flowserve Company currently holds a Zacks #4 Rank, which implies a short term (1-3 months) ‘Sell’ recommendation.
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