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Deep Down Expands Maine, Texas Facilities in Expectation of Growing Sales

HOUSTON (March 3) — Deep Down Inc. announced plans to expand its buoyancy manufacturing facility in Biddeford, Maine, and flotation testing services center in Texas.



The expansion projects are in response to recent orders and anticipated demand for the company's drilling riser buoyancy system used in ultra-deepwater production.

The Biddeford facility’s expansion effectively doubles its buoyancy manufacturing capacity, the company said.

Deep Down acquired the Biddeford facility from Flotation Technologies Inc. last year in conjunction with its continuing strategy to expand services in the deepwater and ultra-deepwater drilling and production markets, according to the company.

Subsequently, the company announced an $11 million order for its deepwater drilling riser buoyancy modules to be installed on the Delba III semisubmersible drilling rig, which has a long-term contract to drill in Brazilian waters.

“Deep Down’s primary opportunities are in the growing deepwater drilling and production services sector,” said Ronald E. Smith, president and CEO of the Houston-based company. “To ensure our company is prepared to meet demand, we have committed more than $2 million to expand production and testing service capabilities. We have undertaken this expansion to advance Deep Down's strategy to become a leader within the deepwater buoyancy marketplace.”

Ground has been broken on the first phase of the expansion project, with construction to improve the Biddeford facility’s shipping access and operational functionality. The second phase of the project, which includes the Biddeford facility’s expansion and a Texas-based testing service facility, is slated to begin later this year.