Raven Industries to Substantially Expand Extrusion Capacity in Engineered Films
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SIOUX FALLS, S.D., Jan. 17-- Raven Industries, Inc. (NASDAQ:RAVN) announced today that it has finalized purchase orders totaling $7.5 million to expand its extrusion capacity in the Engineered Films Division (EFD) in Sioux Falls. This represents acceleration of an ongoing program to invest at least $8 million in EFD annually over the next three years. Total EFD investment plans for the fiscal year ending January 31, 2007 exceed $11 million.
Raven President and CEO Ronald M. Moquist said, "We are following through with our commitment to invest in businesses that deliver outstanding returns, and Engineered Films certainly qualifies. This expansion will not only increase throughput capacity, but also widen our product offerings by allowing us to extrude seven-layer films. We currently provide protection from wind and moisture for construction applications. Seven-layer capabilities should allow us to develop films for industrial applications that provide a barrier against certain gases as well." The new equipment is expected to be operational by the end of October 2006.
Raven is an industrial manufacturer that provides electronics manufacturing services, reinforced plastic sheeting and flow control devices to various markets.
FORWARD-LOOKING STATEMENTS
The Private Securities Litigation Reform Act provides a "safe harbor" for forward-looking statements. Certain information included in this press release and other materials filed or to be filed by the company with the Securities and Exchange Commission (as well as information included in statements made or to be made by the company) contains statements that are forward-looking. Although the company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, there is no assurance that such expectations will be achieved. Such assumptions involve important risks and uncertainties that could significantly affect results in the future. These risks and uncertainties include, but are not limited to, those relating to weather conditions, which could affect certain of the company's primary markets, such as agriculture and construction, or changes in competition, raw material availability, technology or relationships with the company's largest customers, any of which could adversely impact any of the company's product lines. Results may be impacted by equipment availability and technological challenges, which could affect the timing or the success of installation of new equipment and the development of new films. The foregoing list is not exhaustive and the company disclaims any obligation to subsequently revise any forward-looking statements to reflect events or circumstances after the date of such statements.
On the Internet, information is available at Raven's website,
http://www.ravenind.com/
SIC Codes: 3672, 3081, 3829
Source: Raven Industries, Inc.
CONTACT: Tom Iacarella, VP & CFO of Raven Industries, Inc.,
+1-605-336-2750, or General Inquiries, Dennis Waite, +1-708-246-6265,
+Analyst
Inquiries, Leslie Loyet, +1-312-640-6672, or Media Inquiries, Tim Grace,
+1-312-640-6667, all of Financial Relations Board
Web site: http://www.ravenind.com/
