Velan is awarded two major contracts worth a total of US$63 million

MONTREAL, May 16, 2019 (GLOBE NEWSWIRE) -- In past weeks, two of Velan’s subsidiaries, Velan ABV Srl and Velan Sas, have secured contracts with a total value of US$63 million. The first, the extension of a previous order with MODEC and, the second, a contract with ITER for their tokamak cooling water system.

Velan ABV wins another significant contract with MODEC

In addition to last’s years contracts, Velan Inc.'s wholly owned subsidiary located in Lucca, Italy, has been awarded another contract for the supply of actuated and manual valves to MODEC Offshore Production Systems (Singapore) Pte. Ltd.

These new orders are scheduled for delivery by mid to late 2019 (Q2 to Q4 FY20).

Velan ABV signed contracts with MODEC for the supply of riser and topside actuated valves as well as compact manual ball valves for their new Floating Production Storage and Offloading (FPSO) MV31 Guanabara vessel. The FPSO will be deployed at the Mero (former Libra) field operated by Petróleo Brasileiro S.A. (Petrobras). The scope of supply consists of high and ultra-high pressure forged valves. Their compact design, much lighter compared to the standard, will significantly contribute to customers’ effort of reducing the total weight of the vessel.

Paolo Ranieri, Managing Director and CEO of Velan ABV stated: "These contracts reward our continuous effort to serve our customers with something more than a quality product at the right price. We work with them to identify smart solutions, so they can be successful on the market and reduce the total cost of ownership. Innovation, expertise and agility are the foundation of Velan’s values and this continues to play a key role in satisfying customers’ needs.”

Velan Sas secures contract with ITER for nuclear fusion reactor

ITER ("The Way" in Latin) is one of the most ambitious energy projects in the world today. In southern France, 35 nations are collaborating to build the world's largest tokamak, a magnetic fusion device that has been designed to prove the feasibility of fusion as a large-scale and carbon-free source of energy based on the same principle that powers our Sun and stars.

The ITER Tokamak and plant auxiliary systems will produce an average of 500 MW of heat during a typical plasma pulse cycle, with a peak of more than 1100 MW during the plasma burn phase; all of this heat needs to be dissipated to the environment. This is accomplished by the evaporation of HRS water as it passes through the induced-draft cooling towers. The high rate of evaporation concentrates minerals in the HRS water; as a result, part of the water is continuously discharged from the system and replaced by water from the Canal de Provence. The discharged water (blowdown) passes through a series of control basins where the water is tested for various parameters such as temperature (maximum 30°C), pH, and the presence of hydrocarbons, chlorides, sulphates and tritium.

During plasma operations, the combined flow rate of all water in circulation in the cooling water system loops is approximately 33 m³/s, flowing through pipes with nominal diameters of up to 1.6 meters.¹

Raphaël Couturier, Sales Director for Velan Sas, says “this project confirms our partnership with ITER Organization in the field of specific valve solutions that are important for safety. It also demonstrates our ability to develop and qualify new products for the next generation of nuclear reactors, and our intention to be a global player in this market not only for new facilities but also for operating and modernizing the world’s global fleet of nuclear reactors.”

Velan Sas, located in Lyon, France, will be providing over 2,000 valves for this project including ball, butterfly check and globe. These valves are scheduled for delivery between 2021 and 2023.

“These two recent contracts demonstrate the strength of Velan and our capacity to take on large scale projects on a global scale” states Yves Leduc, President and CEO of Velan Inc. “We have the product portfolio, expertise and hunger for innovation that allows us to undertake such unique and diverse projects.”

About Velan: Founded in Montreal in 1950, Velan Inc. () is one of the world’s leading manufacturers of industrial valves, with sales of US$338 million in its last reported fiscal year. The Company employs over 1,800 people and has manufacturing plants in 9 countries. Velan Inc. is a public company with its shares listed on the Toronto Stock Exchange under the symbol VLN.

This press release may contain information and statements of a forward-looking nature concerning the future performance of Velan Inc. and its subsidiaries. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. As a result, readers are advised that actual results may differ from expected results.

For further information please contact:

Yves Leduc, President & Chief Executive Officer

or

John D. Ball, Chief Financial Officer

Tel: (514) 748-7743

Fax: (514) 908-0180

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