We are a global designer, engineer and fabricator of a comprehensive
portfolio of equipment for gas turbine power plants, with over 30 years of power
generation industry experience. We believe that we are a leader in our industry,
offer one of the broadest ranges of gas turbine power plant equipment in the
world and hold the number one or number two market position by sales in a
majority of our product lines. Our equipment is installed in power plants in
more than 30 countries on six continents and we believe that we have one of the
largest installed bases of gas turbine power plant equipment in the world. In
addition, we provide our customers with value-added services including
engineering, retrofit and upgrade, and maintenance and repair.
We sell our products to the gas turbine power generation market, the
fastest growing segment of the power generation industry. Our products are
critical to the efficient operation of gas turbine power plants and are highly
engineered to meet customer-specific requirements. Our products include:
- heat recovery steam generators;
- filter houses;
- inlet systems;
- gas and steam turbine enclosures;
- exhaust systems;
- diverter dampers; and
- specialty boilers and related products.
We market and sell our products globally under the Deltak, Braden and
Consolidated Fabricators brand names through our worldwide sales network.
We fabricate our equipment through a combination of in-house manufacturing
and extensive outsourcing relationships. Our network of exclusive
subcontractors, located throughout 30 countries, allows us to manufacture
equipment for power plant projects worldwide at competitive prices. Our
subcontractors also enable us to meet increasing demand without being restricted
by manufacturing capacity limitations, thus limiting capital expenditure
We believe our design and engineering capabilities differentiate us from
our competitors. By providing high-quality products on a timely basis and
offering a broad range of equipment, we have forged long-standing relationships
with the leading power industry participants, including General Electric,
Mitsubishi Heavy Industries, Siemens-Westinghouse, Bechtel and Duke Power. Our
revenues have grown from $142.7 million in fiscal year 1997 to $416.6 million in
fiscal year 2000, representing a compound annual growth rate of 42.9%.
To maximize shareholder value and enhance our market position in the
growing power generation industry, we will continue to pursue the following
- Expand our leading market position in the high-growth U.S. market. Our
design and engineering expertise positions us to bid on and execute
virtually any major gas turbine power plant project. According to the
Energy Information Administration, or EIA, over 1,300 new power
generation plants with approximately 390 gigawatts of electrical
generation capacity will be needed in the United States by 2020 to meet
demand. We believe that our reputation for quality products, low-cost
fabrication and on-time delivery of a broad line of equipment have made
us a critical supplier to our customers and end users, further
strengthening our position as a market leader.
- Leverage our presence in the emerging international power
markets. Through our international presence, we are positioned to
undertake power generation projects throughout the world. According to
the International Energy Agency, or IEA, approximately 90% of the $2.9
trillion in worldwide electrical generation capacity investment through
2020 will be expended outside of North America.
Our global presence and experience allows us to serve our multinational
customers' needs in a timely and efficient manner.
- Pursue strategic acquisitions. We intend to pursue selective
acquisitions which will increase our market share in existing product
lines, broaden our overall product offering and expand our geographic
reach. The power generation equipment industry is highly fragmented,
comprised largely of small companies or corporate divisions with
relatively limited product lines. The fragmented nature of the industry
provides us with numerous acquisition opportunities.
- Leverage our design and engineering capabilities to expand our product
lines. We intend to expand our product lines to capture a larger share
of our customers' equipment purchases. Through our design and engineering
capabilities and experience in gas turbine technology, we have developed
a number of complementary product lines, including inlet cooling systems,
pulse filters, air filter elements and diverter dampers. Throughout our
30-year history, we have also successfully introduced new end-use
applications for our underlying technologies, including products for the
process, marine, pulp and paper and pharmaceutical industries.