DynaEnergetics Plans Three-fold Increase in DynaStage™ Production by Fourth Quarter
HOUSTON, Texas – August 14, 2017 – DynaEnergetics, a business of DMC Global Inc. (Nasdaq: BOOM), today announced plans to triple the quarterly production of its factory-assembled, performance-assured DynaStage perforating systems by this year’s fourth quarter versus the volume produced in this year’s second quarter. DynaEnergetics recently reported that DynaStage unit sales during the second quarter were up eight-fold versus the first quarter.
DynaEnergetics management said it also plans to open a 40,000-square-foot manufacturing and assembly center in next year’s second quarter. The facility, which will be part of DynaEnergetics’ manufacturing campus in Blum, Texas, will enable further expansion of DynaStage assembly operations. During the second half of 2018, the business also plans to add a second automated U.S. shaped-charge manufacturing line at the Blum facility and a second automated DynaSelect detonator line at its manufacturing plant in Troisdorf, Germany.
A second phase of the Blum expansion is scheduled for 2019-2020, and will include a 30,000-square-foot hardware manufacturing facility. Total investment in the expansion is expected to be $18 million to $20 million and will be funded from DynaEnergetics’ operating cash flow over a three-year period beginning in 2018.
“Our customers are reporting DynaStage has significantly improved the efficiency of their perforating operations, and is delivering measureable cost and performance benefits,” said Ian Grieves, president of DynaEnergetics. “These benefits have been especially important given the recent volatility in oil prices, as the factory-assembled system is reducing our customers’ need for capital investments in costly assembly and storage infrastructure, licenses and personnel.”
Grieves added, “Well-completion activity in North America continues to accelerate, and we are confident this will lead to increased interest in the DynaStage system. We are committed to meeting the demand.”
DynaEnergetics’ innovative perforating systems make a measureable impact on well productivity, completion cost and safety. As the only global perforating manufacturer that designs, manufactures and qualifies all components of the perforating system and accessories in-house, DynaEnergetics ensures unmatched performance and the lowest total cost of operations. DynaEnergetics is a business of publicly traded DMC Global Inc. (Nasdaq: BOOM). For more information, visit www.dynaenergetics.com.
Safe Harbor Language
Except for the historical information contained herein, this news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including expected DynaStage production volumes in the 2017 fourth quarter, the expected growth in demand for DynaStage, and the expected timing and cost of completing phases one and two of a new manufacturing and assembly facilities in Blum Texas. Forward-looking information and statements are subject to known and unknown risks, uncertainties and other important factors that may cause actual results and performance to be materially different from those expressed or implied by such forward-looking information and statements, including but not limited to: availability of raw materials and labor, fluctuations in customer demand; the cyclicality of the oil and gas industry; competitive factors; current or future limits on manufacturing capacity; the availability and cost of funds; the outcome of ongoing litigation and regulatory matters; as well as the other risks detailed from time to time in our SEC reports, including the annual report on Form 10-K for the year ended December 31, 2016. We do not undertake any obligation to release publicly revisions to any forward-looking statement, including, without limitation, to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.
Vice President and General Manager, Americas
DMC Global Investor Contact:
Vice President of Investor Relations
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