Activated carbon producer Calgon Carbon Corporation (CCC) received a $3.0 million contract to treat water supplies in Georgia. The Cobb County-Marietta Water Authority, Marietta, Georgia, selected Calgon Carbon to supply activated carbon pressure vessels to remove and prevent the further formation of disinfection by-products at one of its water treatment plants.
Disinfection by-products are harmful compounds formed when organic and mineral materials in the water react with chemical treatment agents such as chlorine, which are used to disinfect water. The carbon pressure vehicle at the Wyckoff Treatment Plant processes a maximum of 72 million gallons of water per day, which is in compliance with the U.S. Environmental Protection Agency’s Stage 2 DBP Rule. The rule sets the maximum permissible levels for disinfection by-products in drinking water. The Stage 2 Rule will be effective from April 2012.
Earlier this month, Calgon was awarded a $1.9 million contract by the U.S. Army Contracting Command, Illinois, for the supply of air filtration machinery. There is a possibility of the contract value being extended to $5.1 million over a period of three years.
Pittsburgh, Pennsylvania based Calgon Carbon is a global leader in services and solutions for making water and air safer and cleaner. The company has long experience in supplying filter housings and activated carbon filters for indoor and industrial air purification, and military applications.
Calgon Carbon currently has a share of 25% to 33% in the total UV-treated drinking water market. We expect the company to realize substantial top- and bottom-line growth as this market matures and orders increase in the long term.
At its analyst day last month, the company discussed its strategic plans for the period 2010–2015. Calgon Carbon is focusing on emerging markets. The company believes its focus on Asia should drive earnings growth from 2010 to 2015. Calgon Carbon is also optimistic about its development in the ultraviolet (UV)-based disinfection market and water treatment market in China.
Currently, we remain Neutral on Calgon Carbon supported by the short-term (1 to 3 months) Zacks #3 Rank (‘hold’).
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