Flowserve Corp. (FLS), a leading US based pumps maker, received an order of plug valves for a desalination plant in Australia. As per the order, the Australia’s Southern Seawater Desalination Plant, located near Perth, will use Flowserve’s manual and automated Durco PlugSeal valves for its high-pressure processes.
Perth has been experiencing shortage in rainfall resulting in declining water level in its local reservoirs. This situation, if continues, is expected to result in an annual water shortage of approximately 150 billion liters by 2031. The plant is designed to give an output of 50 billion liters of potable water annually, with the ability to expand to 100 billion liters.
The plant is expected to open in late 2011 and with this more than 30% of Western Australia’s water supply would come from desalination. The desalination plant near Perth has been under construction since July 2009. The plant is being developed by Australia’s Sourthern Sea Water Alliance, which is a joint venture of the Water Corporation, Técnicas Reunidas Australia, Valoriza Water Australia, AJ Lucas Operations and Worley Parsons Services.
Currently, most of the desalination plant focuses on developing cost-effective ways of providing fresh water to human beings in regions, where the availability of fresh water is limited or will become limited in future.
Flowserve’s Durco PlugSeal valves are especially designed for such desalination plants. With substantial experience and expertise in desalination industry, such deals in which Flowserve acts as a benefactor to provide solutions to fresh, potable water to a region, would help the Company to expand globally.
Headquartered in Irving, Texas, Flowserve develops, manufactures, and sells precision-engineered flow control equipment as well as provides a range of aftermarket equipment services.
We currently maintain our Neutral recommendation on Flowserve.
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