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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
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FORM 8-K
Current Report
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
June 24, 2002
IONICS, INCORPORATED
(Exact name of registrant as specified in its charter)
Commission File Number: 1-7211
Massachusetts
(State of incorporation)
04-2068530
(I.R.S. Employer Identification Number)
65 Grove Street, Watertown, Massachusetts 02472
(Address of principal executive offices and Zip Code)
Registrant's telephone number, including area code: (617) 926-2500
Page 1 of 6 pages
Exhibit Index - Page 4
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Item 5. Other Events
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On June 24, 2002, Ionics, Incorporated, a Massachusetts corporation (the
"Company"), announced that it had signed equipment supply and multi-year service
contracts in Kuwait totaling U.S. $320 million for a project company which will
design, build, own, operate and maintain a 100 million gallon-per-day wastewater
treatment facility at Sulaibiya, near Kuwait City, Kuwait. The Company, either
directly or through wholly owned subsidiaries, will participate in the project
as a 25% equity partner in the project company; as the designer and supplier of
the facility's membrane-based water purification systems; and as an operator of
the membrane portion of the facility over the 27.5 year contract period. The
Company will include $130 million relating to this project in its reported
bookings for the quarter ending June 30, 2002. This amount includes revenue that
will be generated from the design and supply of the membrane portion of the
facility, as well as revenue that will be generated from the first five years of
the Company's contract to operate the membrane facility.
Item 7. Financial Statements and Exhibits
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(c) Exhibits
Exhibit No. Exhibit
99 Press Release of Ionics, Incorporated dated June
24, 2002
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: June 24, 2002 IONICS, INCORPORATED
By: /s/Stephen Korn
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Stephen Korn
Vice President and General Counsel
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EXHIBIT INDEX
Description Page Number
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Press Release of Ionics, Incorporated dated 5
June 24, 2002
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EXHIBIT 99
IONICS RECEIVES ORDERS TOTALING $320 MILLION FOR WORLD'S LARGEST
MEMBRANE-BASED WATER REUSE PROJECT IN KUWAIT
Watertown, MA, June 24, 2002 . . . Ionics, Incorporated (NYSE-ION) announced
today that it had signed equipment supply and multi-year service contracts in
Kuwait totaling $320 million with a project company led by Mohammed Abdulmohsin
Al-Kharafi & Sons (the Kharafi Group), which will design, build, own, operate
and maintain a 100 million gallon per day wastewater treatment facility at
Sulaibiya near Kuwait City. The Kharafi Group is a leading Middle East
corporation with diversified activities and $3.3 billion turnover. The Sulaibiya
facility will be the largest membrane-based water reclamation and reuse facility
in the world. The signing of the contracts took place in conjunction with the
finalization of bank financing which will enable the project company to commence
construction.
Ionics will participate in the project, directly, and through several of its
European subsidiaries, from three different perspectives: as a 25% equity
partner in the project company; as the designer and supplier of the reverse
osmosis (RO) and ultrafiltration (UF) membrane-based water purification systems;
and as an operator of the membrane portion of the facility over the 27.5 year
contract period. Ionics will include $130 million relating to this project in
its reported bookings for the second quarter. This amount includes revenue for
the design and supply of the RO and UF portion of the facility as well as
revenue for the first five years of Ionics' contract to operate the RO-UF
facility.
In early 2001, the consortium led by the Kharafi Group won a 30-year concession
from the Kuwait government to recover and upgrade tertiary-treated wastewater
from Kuwait City and the surrounding area. The purified water will be used to
satisfy agricultural requirements which are currently impacting the drinking
water supply. The projected revenues to the project company over the life of the
contract are expected to total over $2 billion. The Kharafi Group has formed a
separate joint venture company to construct the civil works and facility
infrastructure as well as other portions of the project. The plant is expected
to begin operation in 2005.
Commenting on the signing, Mr. Nasser Al-Kharafi, President of the Kharafi
Group, stated, "I am confident that our partnership with Ionics, with its
exceptional spirit of co-operation and teamwork, shall provide the benchmark and
catalyst for the successful implementation of similar BOT projects in the Middle
East region, which are particularly relevant due to the scarcity of this
essential commodity in the area."
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Similarly, Mr. Arthur L. Goldstein, Chairman and Chief Executive Officer of
Ionics, stated, "The people of Ionics are very proud to be associated with this
landmark project which has profound implications for water resources in many
other regions around the world. We are especially pleased with our partnership
with the Kharafi Group. We look forward to our role in helping to successfully
secure sustainable water supplies for the region."
Ionics is a global separations technology company involved in the manufacture
and sale of membranes, equipment and "own and operate" services for the
purification, disinfection, concentration, treatment and analysis of water,
wastewater and ultrapure water. Over a period of more than 50 years, Ionics has
built more desalination plants than any company in the world.
Safe-harbor statement under the Private Securities Litigation Reform Act of
1995: Forward-looking statements in this news release involve risk and
uncertainty. The statements contained in this release which are not historical
facts are forward-looking statements. Important factors, including overall
economic conditions, demand for Company products, raw material availability,
availability of manufacturing capacity, technological and product development
risks, competitors' actions, and other factors described in the Company's
filings with the Securities and Exchange Commission could cause actual results
to differ materially.
For more information, contact:
Francine S. Bernitz, Vice President Theodore G. Papastavros, Vice President
Marketing and Corporate Communications Strategic Planning
Ionics, Incorporated Ionics, Incorporated
Tel: (617) 926-2510 ext. 312 Tel: (617) 926-2510 ext. 221
fbernitz@ionics.com tpapastavros@ionics.com