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\ue000\ue000
UNITED\ue000 STATES
SECURITIES\ue000 AND\ue000 EXCHANGE\ue000 COMMISSION
Washington,\ue000 D.C.\ue000 20549
\ue000
\ue000
Form\ue000 10-K
\ue000
\ue000
\ue000
x
ANNUAL\ue000 REPORT\ue000 PURSUANT\ue000 TO\ue000 SECTION\ue000 13\ue000 OR\ue000 15(d)\ue000 OF\ue000 THE\ue000 SECURITIES\ue000 EXCHANGE\ue000 ACT\ue000 OF\ue000 1934
For\ue000 the\ue000 fiscal\ue000 year\ue000 ended\ue000 December\ue000 31,\ue000 2008
OR
\ue000
\u00ae
TRANSITION\ue000 REPORT\ue000 PURSUANT\ue000 TO\ue000 SECTION\ue000 13\ue000 OR\ue000 15(d)\ue000 OF\ue000 THE\ue000 SECURITIES\ue000 EXCHANGE\ue000 ACT\ue000 OF\ue000 1934
For\ue000 the\ue000 transition\ue000 period\ue000 from\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000 to\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000
Commission\ue000 File\ue000 No.\ue000 1-11442
\ue000
\ue000
CHART\ue000 INDUSTRIES,\ue000 INC.
(Exact\ue000 Name\ue000 of\ue000 Registrant\ue000 as\ue000 Specified\ue000 in\ue000 its\ue000 Charter)
\ue000
\ue000
\ue000
Delaware
\ue000
34-1712937
(State\ue000 or\ue000 Other\ue000 Jurisdiction\ue000 of
Incorporation\ue000 or\ue000 Organization)
\ue000
(IRS\ue000 Employer
Identification\ue000 No.)
\ue000
One\ue000 Infinity\ue000 Corporate\ue000 Centre\ue000 Drive,
\ue000
Suite\ue000 300,\ue000 Garfield\ue000 Heights,\ue000 Ohio
\ue000
44125-5370
(Address\ue000 of\ue000 Principal\ue000 Executive\ue000 Offices)
\ue000
(Zip\ue000 Code)
Registrant\u2019s\ue000 telephone\ue000 number,\ue000 including\ue000 area\ue000 code:
(440)\ue000 753-1490
Securities\ue000 registered\ue000 pursuant\ue000 to\ue000 Section\ue000 12(b)\ue000 of\ue000 the\ue000 Act:
\ue000
Title\ue000 of\ue000 Each\ue000 Class
\ue000
Name\ue000 of\ue000 Each\ue000 Exchange\ue000 on\ue000 Which\ue000 Registered
Common\ue000 Stock,\ue000 par\ue000 value\ue000 $0.01
\ue000
The\ue000 NASDAQ\ue000 Stock\ue000 Market\ue000 LLC
Securities\ue000 registered\ue000 pursuant\ue000 to\ue000 Section\ue000 12(g)\ue000 of\ue000 the\ue000 Act:
None
\ue000
\ue000

Indicate\ue000 by\ue000 check\ue000 mark\ue000 if\ue000 the\ue000 registrant\ue000 is\ue000 a\ue000 well-known\ue000 seasoned\ue000 issuer,\ue000 as\ue000 defined\ue000 in\ue000 Rule\ue000 405\ue000 of\ue000 the\ue000 Securities\ue000 Act.\ue000\ue000\ue000\ue000 Yes\ue000 \ue000\u00ae\ue000\ue000\ue000\ue000 No\ue000 \ue000x
Indicate\ue000 by\ue000 check\ue000 mark\ue000 if\ue000 the\ue000 registrant\ue000 is\ue000 not\ue000 required\ue000 to\ue000 file\ue000 reports\ue000 pursuant\ue000 to\ue000 Section\ue000 13\ue000 or\ue000 Section\ue000 15(d)\ue000 of\ue000 the\ue000 Act.\ue000\ue000\ue000\ue000 Yes\ue000 \ue000\u00ae\ue000\ue000\ue000\ue000 No\ue000 \ue000x
Indicate\ue000 by\ue000 check\ue000 mark\ue000 whether\ue000 the\ue000 registrant:\ue000 (1)\ue000 has\ue000 filed\ue000 all\ue000 reports\ue000 required\ue000 to\ue000 be\ue000 filed\ue000 by\ue000 Section\ue000 13\ue000 or\ue000 15(d)\ue000 of\ue000 the\ue000 Securities\ue000 Exchange\ue000 Act\ue000 of\ue000 1934\ue000 during

the\ue000 preceding\ue000 12\ue000 months\ue000 (or\ue000 for\ue000 such\ue000 shorter\ue000 period\ue000 that\ue000 the\ue000 registrant\ue000 was\ue000 required\ue000 to\ue000 file\ue000 such\ue000 reports),\ue000 and\ue000 (2)\ue000 has\ue000 been\ue000 subject\ue000 to\ue000 such\ue000 filing\ue000 requirements\ue000 for\ue000 the
past\ue000 90\ue000 days.\ue000\ue000\ue000\ue000 Yes\ue000 \ue000x\ue000\ue000\ue000\ue000 No\ue000 \ue000\u00ae

Indicate\ue000 by\ue000 check\ue000 mark\ue000 if\ue000 disclosure\ue000 of\ue000 delinquent\ue000 filers\ue000 pursuant\ue000 to\ue000 Item\ue000 405\ue000 of\ue000 Regulation\ue000 S-K\ue000 is\ue000 not\ue000 contained\ue000 herein,\ue000 and\ue000 will\ue000 not\ue000 be\ue000 contained,\ue000 to\ue000 the\ue000 best
of\ue000 registrant\u2019s\ue000 knowledge,\ue000 in\ue000 definitive\ue000 proxy\ue000 or\ue000 information\ue000 statements\ue000 incorporated\ue000 by\ue000 reference\ue000 in\ue000 Part\ue000 III\ue000 of\ue000 this\ue000 Form\ue000 10-K\ue000 or\ue000 any\ue000 amendment\ue000 to\ue000 this
Form\ue000 10-K.\ue000 \ue000x

Indicate\ue000 by\ue000 check\ue000 mark\ue000 whether\ue000 the\ue000 registrant\ue000 is\ue000 a\ue000 large\ue000 accelerated\ue000 filer,\ue000 an\ue000 accelerated\ue000 filer,\ue000 a\ue000 non-accelerated\ue000 filer\ue000 or\ue000 a\ue000 smaller\ue000 reporting\ue000 company.\ue000 See
definition\ue000 of\ue000 \u201clarge\ue000 accelerated\ue000 filer,\u201d\ue000 \u201caccelerated\ue000 filer\u201d\ue000 and\ue000 \u201csmaller\ue000 reporting\ue000 company\u201d\ue000 in\ue000 Rule\ue000 12b-2\ue000 of\ue000 the\ue000 Exchange\ue000 Act.\ue000 (Check\ue000 one):
\ue000
Large\ue000 accelerated\ue000 filer \ue000x
\ue000 \ue000 Accelerated\ue000 filer
\ue000\u00ae
Non-accelerated\ue000 filer
\ue000\u00ae \ue000 \ue000 (Do\ue000 not\ue000 check\ue000 if\ue000 a\ue000 smaller\ue000 reporting\ue000 company)
\ue000 \ue000 Smaller\ue000 reporting\ue000 company
\ue000\u00ae
Indicate\ue000 by\ue000 check\ue000 mark\ue000 whether\ue000 the\ue000 registrant\ue000 is\ue000 a\ue000 shell\ue000 company\ue000 (as\ue000 defined\ue000 in\ue000 Rule\ue000 12b-2\ue000 of\ue000 the\ue000 Exchange\ue000 Act).\ue000\ue000\ue000\ue000 Yes\ue000 \ue000\u00ae\ue000\ue000\ue000\ue000 No\ue000 \ue000x
The\ue000 aggregate\ue000 market\ue000 value\ue000 of\ue000 the\ue000 voting\ue000 common\ue000 equity\ue000 held\ue000 by\ue000 non-affiliates\ue000 computed\ue000 by\ue000 reference\ue000 to\ue000 the\ue000 price\ue000 of\ue000 $48.64\ue000 per\ue000 share\ue000 at\ue000 which\ue000 the\ue000 common
equity\ue000 was\ue000 last\ue000 sold,\ue000 as\ue000 of\ue000 the\ue000 last\ue000 business\ue000 day\ue000 of\ue000 the\ue000 registrant\u2019s\ue000 most\ue000 recently\ue000 completed\ue000 second\ue000 fiscal\ue000 quarter\ue000 was\ue000 $1,365,225,769.
As\ue000 of\ue000 February\ue000 15,\ue000 2009,\ue000 there\ue000 were\ue000 28,403,391\ue000 outstanding\ue000 shares\ue000 of\ue000 the\ue000 Company\u2019s\ue000 common\ue000 stock,\ue000 par\ue000 value\ue000 $0.01\ue000 per\ue000 share.
Documents\ue000 Incorporated\ue000 by\ue000 Reference
Portions\ue000 of\ue000 the\ue000 following\ue000 document\ue000 are\ue000 incorporated\ue000 by\ue000 reference\ue000 into\ue000 Part\ue000 III\ue000 of\ue000 this\ue000 Annual\ue000 Report\ue000 on\ue000 Form\ue000 10-K:\ue000 the\ue000 definitive\ue000 Proxy\ue000 Statement\ue000 to\ue000 be\ue000 used
in\ue000 connection\ue000 with\ue000 the\ue000 Registrant\u2019s\ue000 Annual\ue000 Meeting\ue000 of\ue000 Stockholders\ue000 to\ue000 be\ue000 held\ue000 on\ue000 May\ue000 19,\ue000 2009\ue000 (the\ue000 \u201c2009\ue000 Proxy\ue000 Statement\u201d).
Except\ue000 as\ue000 otherwise\ue000 stated,\ue000 the\ue000 information\ue000 contained\ue000 in\ue000 this\ue000 Annual\ue000 Report\ue000 on\ue000 Form\ue000 10-K\ue000 is\ue000 as\ue000 of\ue000 December\ue000 31,\ue000 2008.
\ue000
\ue000\ue000
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PART\ue000 I
\ue000
Item\ue000 1.
Business.
THE\ue000 COMPANY
Overview

Chart\ue000 Industries,\ue000 Inc.\ue000 (the\ue000 \u201cCompany,\u201d\ue000 \u201cChart\u201d\ue000 or\ue000 \u201cwe\u201d)\ue000 is\ue000 a\ue000 leading\ue000 independent\ue000 global\ue000 manufacturer\ue000 of\ue000 highly\ue000 engineered\ue000 equipment
used\ue000 in\ue000 the\ue000 production,\ue000 storage\ue000 and\ue000 end-use\ue000 of\ue000 hydrocarbon\ue000 and\ue000 industrial\ue000 gases,\ue000 based\ue000 on\ue000 our\ue000 sales\ue000 and\ue000 the\ue000 estimated\ue000 sales\ue000 of\ue000 our
competitors.\ue000 We\ue000 supply\ue000 engineered\ue000 equipment\ue000 used\ue000 throughout\ue000 the\ue000 global\ue000 liquid\ue000 gas\ue000 supply\ue000 chain.\ue000 The\ue000 largest\ue000 portion\ue000 of\ue000 end-use
applications\ue000 for\ue000 our\ue000 products\ue000 is\ue000 energy-related,\ue000 accounting\ue000 for\ue000 approximately\ue000 62%\ue000 of\ue000 sales\ue000 and\ue000 56%\ue000 of\ue000 orders\ue000 in\ue000 2008,\ue000 and\ue000 82%\ue000 of\ue000 backlog\ue000 at
December\ue000 31,\ue000 2008.\ue000 We\ue000 are\ue000 a\ue000 leading\ue000 manufacturer\ue000 of\ue000 standard\ue000 and\ue000 engineered\ue000 equipment\ue000 primarily\ue000 used\ue000 for\ue000 low-temperature\ue000 and\ue000 cryogenic
applications.\ue000 We\ue000 have\ue000 developed\ue000 an\ue000 expertise\ue000 in\ue000 cryogenic\ue000 systems\ue000 and\ue000 equipment,\ue000 which\ue000 operate\ue000 at\ue000 low\ue000 temperatures\ue000 sometimes
approaching\ue000 absolute\ue000 zero\ue000 (0\ue000 kelvin;\ue000 -273\u00b0\ue000 Centigrade;\ue000 -459\u00b0\ue000 Fahrenheit).\ue000 The\ue000 majority\ue000 of\ue000 our\ue000 products,\ue000 including\ue000 vacuum\ue000 insulated
containment\ue000 vessels,\ue000 heat\ue000 exchangers,\ue000 cold\ue000 boxes\ue000 and\ue000 other\ue000 cryogenic\ue000 components,\ue000 are\ue000 used\ue000 throughout\ue000 the\ue000 liquid\ue000 gas\ue000 supply\ue000 chain\ue000 for\ue000 the
purification,\ue000 liquefaction,\ue000 distribution,\ue000 storage\ue000 and\ue000 end-use\ue000 of\ue000 hydrocarbon\ue000 and\ue000 industrial\ue000 gases.

Our\ue000 primary\ue000 customers\ue000 are\ue000 large,\ue000 multinational\ue000 producers\ue000 and\ue000 distributors\ue000 of\ue000 hydrocarbon\ue000 and\ue000 industrial\ue000 gases\ue000 and\ue000 their\ue000 suppliers.\ue000 We
sell\ue000 our\ue000 products\ue000 and\ue000 services\ue000 to\ue000 more\ue000 than\ue000 2,000\ue000 customers\ue000 worldwide.\ue000 We\ue000 have\ue000 developed\ue000 long-standing\ue000 relationships\ue000 with\ue000 leading
companies\ue000 in\ue000 the\ue000 gas\ue000 production,\ue000 gas\ue000 distribution,\ue000 gas\ue000 processing,\ue000 liquefied\ue000 natural\ue000 gas\ue000 or\ue000 LNG,\ue000 chemical\ue000 and\ue000 industrial\ue000 gas\ue000 industries,
including\ue000 Air\ue000 Products,\ue000 Praxair,\ue000 Airgas,\ue000 Air\ue000 Liquide,\ue000 The\ue000 Linde\ue000 Group\ue000 or\ue000 Linde,\ue000 JGC\ue000 Corporation\ue000 or\ue000 JGC,\ue000 Bechtel\ue000 Corporation,\ue000 Jacobs
Engineering\ue000 Group,\ue000 Inc.\ue000 or\ue000 Jacobs,\ue000 ExxonMobil,\ue000 British\ue000 Petroleum\ue000 or\ue000 BP,\ue000 ConocoPhillips,\ue000 Saudi\ue000 Aramco,\ue000 Shaw\ue000 Stone\ue000 &\ue000 Webster,\ue000 ABB
Lummus,\ue000 Uhde,\ue000 CTCI\ue000 Corporation\ue000 or\ue000 CTCI,\ue000 Toyo,\ue000 Samsung,\ue000 Technip,\ue000 Daelim,\ue000 and\ue000 Energy\ue000 World\ue000 Corporation\ue000 or\ue000 EWC,\ue000 many\ue000 of\ue000 whom\ue000 have
been\ue000 purchasing\ue000 our\ue000 products\ue000 for\ue000 over\ue000 20\ue000 years.

We\ue000 have\ue000 attained\ue000 this\ue000 position\ue000 by\ue000 capitalizing\ue000 on\ue000 our\ue000 low-cost\ue000 global\ue000 manufacturing\ue000 footprint,\ue000 technical\ue000 expertise\ue000 and\ue000 know-how,\ue000 broad product\ue000 offering,\ue000 reputation\ue000 for\ue000 quality,\ue000 and\ue000 by\ue000 focusing\ue000 on\ue000 attractive,\ue000 growing\ue000 markets.\ue000 We\ue000 have\ue000 an\ue000 established\ue000 sales\ue000 and\ue000 customer\ue000 support presence\ue000 across\ue000 the\ue000 globe\ue000 and\ue000 low\ue000 cost\ue000 manufacturing\ue000 operations\ue000 in\ue000 the\ue000 United\ue000 States,\ue000 Central\ue000 Europe\ue000 and\ue000 China.\ue000 For\ue000 the\ue000 years\ue000 ended

December\ue000 31,\ue000 2008,\ue000 2007,\ue000 and\ue000 2006,\ue000 we\ue000 generated\ue000 sales\ue000 of\ue000 $744.3\ue000 million,\ue000 $666.4\ue000 million,\ue000 and\ue000 $537.5\ue000 million,\ue000 respectively.
The\ue000 following\ue000 charts\ue000 show\ue000 the\ue000 proportion\ue000 of\ue000 our\ue000 revenues\ue000 generated\ue000 by\ue000 each\ue000 operating\ue000 segment\ue000 as\ue000 well\ue000 as\ue000 our\ue000 estimate\ue000 of\ue000 the\ue000 proportion
of\ue000 revenue\ue000 generated\ue000 by\ue000 end-user\ue000 for\ue000 the\ue000 year\ue000 ended\ue000 December\ue000 31,\ue000 2008.
\ue000
LOGO
\ue000\ue000
LOGO
Segments\ue000 and\ue000 Products
We\ue000 operate\ue000 in\ue000 three\ue000 segments:\ue000 (i)\ue000 Energy\ue000 &\ue000 Chemicals\ue000 or\ue000 E&C,\ue000 (ii)\ue000 Distribution\ue000 and\ue000 Storage\ue000 or\ue000 D&S\ue000 and\ue000 (iii)\ue000 BioMedical.\ue000 While\ue000 each

segment\ue000 manufactures\ue000 and\ue000 markets\ue000 different\ue000 cryogenic\ue000 equipment\ue000 and\ue000 systems\ue000 to\ue000 distinct\ue000 end-users,\ue000 they\ue000 all\ue000 share\ue000 a\ue000 reliance\ue000 on\ue000 our\ue000 heat
transfer\ue000 and\ue000 low\ue000 temperature\ue000 storage\ue000 know-how\ue000 and\ue000 expertise.\ue000 The\ue000 E&C\ue000 and\ue000 D&S\ue000 segments\ue000 manufacture\ue000 products\ue000 used\ue000 primarily\ue000 in\ue000 energy-
related\ue000 and\ue000 general

\ue000
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industrial\ue000 applications,\ue000 such\ue000 as\ue000 the\ue000 separation,\ue000 liquefaction,\ue000 distribution\ue000 and\ue000 storage\ue000 of\ue000 hydrocarbon\ue000 and\ue000 industrial\ue000 gases.\ue000 Through\ue000 our
BioMedical\ue000 segment,\ue000 we\ue000 supply\ue000 cryogenic\ue000 equipment\ue000 used\ue000 in\ue000 the\ue000 storage\ue000 and\ue000 distribution\ue000 of\ue000 biological\ue000 materials\ue000 and\ue000 oxygen,\ue000 used\ue000 primarily\ue000 in
the\ue000 medical,\ue000 biological\ue000 research\ue000 and\ue000 animal\ue000 breeding\ue000 industries.\ue000 Further\ue000 information\ue000 about\ue000 these\ue000 segments\ue000 is\ue000 located\ue000 in\ue000 Note\ue000 K\ue000 to\ue000 the
Company\u2019s\ue000 consolidated\ue000 financial\ue000 statements\ue000 included\ue000 in\ue000 Item\ue000 8\ue000 of\ue000 this\ue000 Annual\ue000 Report\ue000 on\ue000 Form\ue000 10-K.

Energy\ue000 and\ue000 Chemicals\ue000 Segment

Our\ue000 principal\ue000 products\ue000 within\ue000 the\ue000 E&C\ue000 segment,\ue000 which\ue000 accounted\ue000 for\ue000 42%\ue000 of\ue000 sales\ue000 for\ue000 the\ue000 year\ue000 ended\ue000 December\ue000 31,\ue000 2008,\ue000 are\ue000 focused\ue000 on
engineered\ue000 equipment\ue000 and\ue000 systems\ue000 for\ue000 the\ue000 energy\ue000 and\ue000 chemicals\ue000 markets,\ue000 primarily\ue000 heat\ue000 exchangers,\ue000 Core-in-Kettles\u00ae,\ue000 cold\ue000 boxes,\ue000 process
systems\ue000 and\ue000 LNG\ue000 vacuum\ue000 insulated\ue000 pipe.\ue000 These\ue000 products\ue000 are\ue000 used\ue000 by\ue000 major\ue000 natural\ue000 gas,\ue000 petrochemical\ue000 processing\ue000 and\ue000 industrial\ue000 gas
companies\ue000 in\ue000 the\ue000 production\ue000 of\ue000 their\ue000 products.\ue000 Our\ue000 products\ue000 in\ue000 the\ue000 E&C\ue000 segment\ue000 include\ue000 the\ue000 following:

Heat\ue000 Exchangers\ue000 and\ue000 Core-in-Kettles\u00ae

We\ue000 are\ue000 a\ue000 leading\ue000 designer\ue000 and\ue000 manufacturer\ue000 of\ue000 cryogenic\ue000 brazed\ue000 aluminum\ue000 and\ue000 air\ue000 cooled\ue000 heat\ue000 exchangers.\ue000 Using\ue000 technology\ue000 pioneered
by\ue000 us,\ue000 our\ue000 brazed\ue000 aluminum\ue000 heat\ue000 exchangers\ue000 are\ue000 incorporated\ue000 into\ue000 cold\ue000 boxes\ue000 to\ue000 facilitate\ue000 the\ue000 progressive\ue000 cooling\ue000 and\ue000 liquefaction\ue000 of\ue000 air\ue000 or
hydrocarbon\ue000 mixtures\ue000 for\ue000 the\ue000 subsequent\ue000 recovery\ue000 or\ue000 purification\ue000 of\ue000 component\ue000 gases.\ue000 In\ue000 hydrocarbon\ue000 processing\ue000 industries,\ue000 our\ue000 brazed
aluminum\ue000 heat\ue000 exchangers\ue000 allow\ue000 producers\ue000 to\ue000 obtain\ue000 purified\ue000 hydrocarbon\ue000 by-products,\ue000 such\ue000 as\ue000 methane,\ue000 ethane,\ue000 propane\ue000 and\ue000 ethylene,
which\ue000 are\ue000 commercially\ue000 marketable\ue000 for\ue000 various\ue000 industrial\ue000 or\ue000 residential\ue000 uses.\ue000 In\ue000 the\ue000 industrial\ue000 gas\ue000 market,\ue000 our\ue000 brazed\ue000 aluminum\ue000 heat\ue000 exchangers
are\ue000 used\ue000 to\ue000 obtain\ue000 high\ue000 purity\ue000 atmospheric\ue000 gases,\ue000 such\ue000 as\ue000 oxygen,\ue000 nitrogen\ue000 and\ue000 argon,\ue000 which\ue000 have\ue000 numerous\ue000 diverse\ue000 industrial\ue000 applications.

Our\ue000 air\ue000 cooled\ue000 heat\ue000 exchangers\ue000 are\ue000 used\ue000 in\ue000 multiple\ue000 markets\ue000 to\ue000 cool\ue000 fluids\ue000 to\ue000 allow\ue000 for\ue000 further\ue000 processing\ue000 or\ue000 to\ue000 provide\ue000 condensing\ue000 of
fluids,\ue000 including\ue000 the\ue000 hydrocarbon,\ue000 petrochemical,\ue000 natural\ue000 gas\ue000 processing,\ue000 and\ue000 power\ue000 generation.\ue000 Our\ue000 compact\ue000 Core-in-Kettle\u00ae\ue000 heat\ue000 exchangers
are\ue000 designed\ue000 to\ue000 replace\ue000 shell-and-tube\ue000 exchangers,\ue000 offering\ue000 significantly\ue000 more\ue000 heat\ue000 transfer\ue000 surface\ue000 per\ue000 unit\ue000 volume\ue000 and\ue000 greatly\ue000 improving\ue000 the
efficiency\ue000 of\ue000 chillers,\ue000 vaporizers,\ue000 reboilers\ue000 and\ue000 condensers\ue000 in\ue000 hydrocarbon\ue000 applications\ue000 including\ue000 ethylene,\ue000 propylene\ue000 and\ue000 LNG.\ue000 Brazed
aluminum\ue000 and\ue000 air\ue000 cooled\ue000 heat\ue000 exchangers\ue000 are\ue000 engineered\ue000 to\ue000 the\ue000 customer\u2019s\ue000 requirements\ue000 and\ue000 range\ue000 in\ue000 price\ue000 from\ue000 $20,000\ue000 to\ue000 $2.5\ue000 million\ue000 or\ue000 more
depending\ue000 on\ue000 the\ue000 scope\ue000 and\ue000 complexity\ue000 of\ue000 the\ue000 project.

The\ue000 heat\ue000 exchanger\ue000 markets\ue000 have\ue000 seen\ue000 significant\ue000 demand\ue000 over\ue000 the\ue000 last\ue000 few\ue000 years,\ue000 resulting\ue000 primarily\ue000 from\ue000 increased\ue000 activity\ue000 in\ue000 the\ue000 LNG and\ue000 natural\ue000 gas\ue000 segments\ue000 of\ue000 the\ue000 hydrocarbon\ue000 processing\ue000 market\ue000 as\ue000 well\ue000 as\ue000 the\ue000 Asian\ue000 industrial\ue000 gas\ue000 market.\ue000 Other\ue000 key\ue000 global\ue000 drivers\ue000 involve developing\ue000 Gas\ue000 to\ue000 Liquids\ue000 or\ue000 GTL\ue000 and\ue000 clean\ue000 coal\ue000 processes\ue000 including\ue000 Coal\ue000 to\ue000 Liquids\ue000 or\ue000 CTL\ue000 and\ue000 Integrated\ue000 Gasification\ue000 and\ue000 Combined\ue000 Cycle or\ue000 IGCC\ue000 power\ue000 projects.\ue000 In\ue000 the\ue000 future,\ue000 management\ue000 believes\ue000 that\ue000 continuing\ue000 efforts\ue000 by\ue000 petroleum\ue000 producing\ue000 countries\ue000 to\ue000 better\ue000 utilize\ue000 stranded natural\ue000 gas\ue000 and\ue000 previously\ue000 flared\ue000 gases,\ue000 as\ue000 well\ue000 as\ue000 efforts\ue000 to\ue000 broaden\ue000 their\ue000 industrial\ue000 base,\ue000 and\ue000 the\ue000 developing\ue000 clean\ue000 coal\ue000 initiatives\ue000 globally present\ue000 a\ue000 promising\ue000 source\ue000 of\ue000 demand\ue000 for\ue000 our\ue000 heat\ue000 exchangers\ue000 and\ue000 cold\ue000 box\ue000 systems.\ue000 In\ue000 addition,\ue000 demand\ue000 for\ue000 heat\ue000 exchangers\ue000 and\ue000 cold\ue000 boxes in\ue000 developed\ue000 countries\ue000 is\ue000 expected\ue000 to\ue000 continue\ue000 as\ue000 firms\ue000 upgrade\ue000 their\ue000 facilities\ue000 for\ue000 greater\ue000 efficiency\ue000 and\ue000 regulatory\ue000 compliance.

Our\ue000 principal\ue000 competitors\ue000 for\ue000 brazed\ue000 aluminum\ue000 heat\ue000 exchangers\ue000 are\ue000 Linde,\ue000 Sumitomo,\ue000 Kobe\ue000 and\ue000 Nordon,\ue000 and\ue000 we\ue000 face\ue000 competition\ue000 from\ue000 a
variety\ue000 of\ue000 competitors\ue000 for\ue000 air\ue000 cooled\ue000 heat\ue000 exchangers.\ue000 Management\ue000 believes\ue000 that\ue000 we\ue000 are\ue000 the\ue000 only\ue000 producer\ue000 of\ue000 large\ue000 brazed\ue000 aluminum\ue000 heat
exchangers\ue000 in\ue000 the\ue000 United\ue000 States\ue000 and\ue000 that\ue000 we\ue000 are\ue000 a\ue000 leader\ue000 in\ue000 the\ue000 global\ue000 cryogenic\ue000 heat\ue000 exchanger\ue000 market.\ue000 Major\ue000 customers\ue000 for\ue000 our\ue000 heat
exchangers\ue000 in\ue000 the\ue000 industrial\ue000 gas\ue000 market\ue000 include\ue000 Air\ue000 Liquide,\ue000 Air\ue000 Products\ue000 and\ue000 Praxair.\ue000 In\ue000 the\ue000 hydrocarbon\ue000 processing\ue000 market,\ue000 major\ue000 customers
and\ue000 end-users\ue000 include\ue000 BP,\ue000 ExxonMobil,\ue000 Saudi\ue000 Aramco,\ue000 ConocoPhillips\ue000 and\ue000 contractors\ue000 such\ue000 as\ue000 JGC,\ue000 Bechtel,\ue000 Jacobs,\ue000 Kellogg\ue000 Brown\ue000 Root\ue000 or
KBR,\ue000 Technip,\ue000 ABB\ue000 Lummus,\ue000 Toyo,\ue000 Shaw\ue000 Stone\ue000 and\ue000 Webster\ue000 and\ue000 Samsung.

\ue000
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