Graham Corporation Announces Groundbreaking Ceremony for $17.6 Million Manufacturing Facility on Batavia, New York Campus

Rhea-AI Summary

Graham (NYSE: GHM) announced a groundbreaking ceremony for a new 29,000-square-foot manufacturing facility in Batavia, NY. The $17.6 million project includes a $13.5 million investment from a key customer. The facility, expected to begin operations in summer 2025, will create 24 new full-time positions.

The expansion aims to enhance operational capabilities and meet growing customer demands, particularly for the U.S. Navy. The state-of-the-art facility aligns with Graham's sustainability goals and reinforces its commitment to community development. U.S. Senator Charles Schumer and Representative Claudia Tenney praised the expansion for its contribution to national defense and local job creation.

Positive

• Investment of $17.6 million in new manufacturing facility
• Strategic investment of $13.5 million from a key customer
• Creation of 24 new full-time skilled positions
• Expansion of operational capabilities to meet growing customer demands
• Support for U.S. Navy and national defense projects

Negative

• None.

Insights

Financial Analyst

Graham 's $17.6 million investment in a new manufacturing facility signals significant growth potential. The $13.5 million customer investment demonstrates strong market demand and client confidence. This expansion could boost Graham's production capacity, potentially leading to increased revenues and market share, especially in the defense sector. The creation of 24 new full-time positions indicates expected growth in operations and output. However, investors should consider the long-term payoff period for this capital expenditure and its impact on short-term financials. The strategic alignment with a key customer and focus on the U.S. Navy market could provide stable, long-term revenue streams, potentially reducing business volatility.

Manufacturing Industry Expert

The new 29,000 square-foot facility represents a significant upgrade in Graham's manufacturing capabilities. The emphasis on state-of-the-art technology and sustainability aligns with industry trends towards efficiency and environmental responsibility. This investment could potentially improve Graham's competitiveness in the fluid, power, heat transfer and vacuum technologies markets. The focus on serving the U.S. Navy suggests a strong position in the defense sector, which often provides stable, long-term contracts. The 12-month construction timeline and planned summer 2025 operational start indicate a well-planned expansion strategy. This facility could enable Graham to take on larger, more complex projects, potentially opening new market opportunities.

Economic Development Specialist

Graham 's expansion in Batavia, NY, represents a positive economic development for the region. The creation of 24 new full-time skilled positions will have a multiplier effect on the local economy, potentially stimulating additional job creation and economic activity. The company's investment, coupled with political support from Senator Schumer and Representative Tenney, suggests a favorable business environment and potential for future growth. The focus on advanced manufacturing aligns with broader economic trends towards high-skill, high-value production. This project could serve as an anchor for attracting related businesses and fostering a local industrial cluster, further benefiting the regional economy.

New 29,000 square foot building will create 24 new full-time positions; expect to begin commercial operation summer of 2025

BATAVIA, N.Y.--(BUSINESS WIRE)-- Graham Corporation (NYSE: GHM) (“GHM” or “the Company”), a global leader in the design and manufacture of mission critical fluid, power, heat transfer, and vacuum technologies for the defense, space, energy, and process industries, announced that its operating company, Graham Manufacturing, will hold a groundbreaking ceremony today for its new 29,000-square-foot facility in Batavia, NY. This event marks a significant milestone in the Company’s ongoing growth and commitment to serving its customers and the community. The project represents a total investment of approximately $17.6 million, which includes a strategic investment of $13.5 million from one of the Company’s valued customers, with the remaining investment provided by Graham.

State and local officials will join Graham’s executive leadership and construction managers in turning the first ceremonial shovels of dirt, officially launching the building project.

The construction of the new facility is expected to be completed over the next twelve months with operations beginning shortly thereafter. The building will be equipped with state-of-the-art technology and designed with sustainability in mind, aligning with Graham’s broader environmental goals.

Dan Thoren, Graham Corporation President and Chief Executive Officer, commented, “Our new facility will play a key role in enhancing our operational capabilities, providing the expanded capacity to accelerate production to meet our customers’ growing requirements, particularly the U.S. Navy. Moreover, it will enable us to make a positive impact on the Batavia community. Once operational, the expanded operations are expected to create 24 new full-time skilled positions, reinforcing our commitment to job creation and community development.”

U.S. Senator Charles Schumer said, “Graham’s Batavia, NY workforce and the products they make are integral to supporting our nation’s national defense, and today’s $18 million expansion doubles down on their world-class work as a strategic supplier for the U.S. Navy. I’ve been proud to secure vital federal funding for the U.S. Navy’s Submarine and Aircraft Carriers Industrial Base supply chain that the Navy relies on to purchase technology and equipment made right here in Batavia by Graham’s existing 367-employee local workforce. This not only supports these local jobs, but enables the new 24-job $18 million expansion that we break ground on today. With today’s expansion, I commend Graham for setting sail to reach new horizons not only in this company’s growth but in support of our national defense.”

Claudia Tenney, U.S. Representative for New York's 24th Congressional District, said, “Congratulations to Graham Corporation on breaking ground on this new manufacturing facility here in Batavia. Graham Corporation's commitment to creating quality and innovative technologies for our military and providing 24 new job opportunities in our community is commendable. I am eager to witness the continued growth and positive impact Graham Corporation will have in our community and around the world."

Graham is working with Ciurzynski Consulting, Montante Construction and Wolfe Architecture to design and build the advanced manufacturing facility.

About Graham Corporation

Graham is a global leader in the design and manufacture of mission critical fluid, power, heat transfer and vacuum technologies for the defense, space, energy, and process industries. Graham Corporation and its family of global brands are built upon world-renowned engineering expertise in vacuum and heat transfer, cryogenic pumps, and turbomachinery technologies, as well as its responsive and flexible service and the unsurpassed quality customers have come to expect from the Company’s products and systems. Graham Corporation routinely posts news and other important information on its website, grahamcorp.com, where additional information on Graham Corporation and its businesses can be found.

Safe Harbor Regarding Forward Looking Statements

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are subject to risks, uncertainties and assumptions and are identified by words such as “expects,” “will,” and other similar words. All statements addressing operating performance, events, or developments that Graham Corporation expects or anticipates will occur in the future, including but not limited to, timing on the completion of construction, potential expansion of operations, potential job creation, the timing on beginning new operations, and delivering timely or otherwise on schedule are forward-looking statements. Because they are forward-looking, they should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties are more fully described in Graham Corporation’s most recent Annual Report filed with the Securities and Exchange Commission, including under the heading entitled “Risk Factors,” its quarterly reports on Form 10-Q, and other filings it makes with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize or should any of Graham Corporation’s underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on Graham Corporation’s forward-looking statements. Except as required by law, Graham Corporation disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this news release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240819979937/en/

Christopher J. Thome

Vice President - Finance and CFO

Phone: (585) 343-2216

Deborah K. Pawlowski

Kei Advisors LLC

Phone: (716) 843-3908

dpawlowski@keiadvisors.com

Source: Graham Corporation

FAQ

What is the size and cost of Graham 's new manufacturing facility in Batavia, NY?

Graham (GHM) is building a new 29,000-square-foot manufacturing facility in Batavia, NY, with a total investment of approximately $17.6 million.

How many new jobs will Graham 's (GHM) expansion create?

The expansion of Graham 's (GHM) operations in Batavia, NY is expected to create 24 new full-time skilled positions.

When is Graham 's (GHM) new facility expected to begin operations?

Graham 's (GHM) new manufacturing facility in Batavia, NY is expected to begin commercial operations in the summer of 2025.

Who is providing the investment for Graham 's (GHM) new facility?

The $17.6 million investment for Graham 's (GHM) new facility includes $13.5 million from a key customer, with the remaining investment provided by Graham.