Deep Down Receives Order for Custom Buoyancy Solution
Deep Down reports that Flotation Technologies, Inc., a world leader in the engineering, design, and manufacturing of deepwater buoyancy and polyurethane elastomer systems, received a contract award for a unique, custom-designed riser buoyancy solution from an international energy company. The $5.5 million contract is expected to be delivered in the third and fourth quarters of 2008. The client and product are confidential due to the nature of the project.
On April 17, Deep Down announced a definitive agreement to purchase all of the outstanding capital stock of Flotation Technologies, Inc. "We are very excited about the future of Flotation Technologies. We believe the 'cost of ownership' of many of its products is attractive due to lower maintenance, repair, and replacement requirements after installation. Buoyancy will become more important as the offshore energy industry continues its trend toward exploration and development activities in ultra-deep waters," commented Ronald E. Smith, Deep Down's president and CEO.
"This product is a solid example of the application of our engineering capabilities to create solutions for our customers' needs," commented David Capotosto, Flotation Technologies' executive vice-president. "Additionally, the contract highlights our ability to take engineering solutions and produce them in volume, with aggressive timelines."
"We are pleased to have been chosen as the contractor for this project," commented Fred Maguire, Flotation Technologies' sales and marketing manager. "It once again shows that Flotation Technologies has the design, engineering, and manufacturing capabilities to provide innovative, market-changing product solutions."