Newly-acquired subsidiary Riggs Distler awarded three long-term contracts
DRUMMONDVILLE, QC, Oct. 28 /CNW Telbec/ - CVTech Group Inc. ("CVTech" or the "Corporation") (TSX: CVT) today announced that its newly-acquired subsidiary Riggs Distler & Company, Inc. ("Riggs Distler") has been awarded long-term contracts by three important utility service providers in the eastern United States.
First, New Jersey-based Public Service Electric and Gas Company ("PSE&G"), among the 10 largest combined electric and gas companies in the United States, conferred a major contract to Riggs Distler to install pole-attached solar panels on PSE&G's utility and street light poles located throughout PSE&G's electric service territory in New Jersey. This contract has a potential value of US$42.6 million subject to a number of contingencies, including but not limited to, availability of qualifying utility poles, manufacturer ability to produce solar units meeting technical requirements of the program, regulatory approvals and Riggs Distler's provision of installation services for the total project. The deployment of the solar units is expected to occur over a three-and-a-half-year period and work for this program provided to Riggs Distler will be at PSE&G's discretion. According to Leo Sniger, President and CEO of Riggs Distler, approximately 60 employees will be assigned to this contract which is set to begin over the next few weeks.
The first project of its kind in the United States, the installation of small solar units, generating approximately 200 watts each, is a key element of PSE&G's wide-reaching Solar 4 All program aimed at doubling New Jersey's installed solar capacity, already the second largest in the country. The project, when completed, will also be the largest pole-attached solar installation in the world.
Second, Riggs Distler was awarded a three-year renewal "Aerial Contractor of Choice" contract by one of the largest electric and natural gas utility company in Pennsylvania to provide aerial services on its electricity distribution network. Annual revenues are estimated to be in the range of US$8-$10 million. Approximately 30 employees will carry out this mandate which will begin on January 1, 2010.
The third contract is a new mandate for Riggs Distler and involves the provision of maintenance services for coal-fired boilers at a utility service provider's power generating stations. This contract is for an initial term of five years, but can be further extended through two one-year options exercisable at the client's discretion. For this contract, Mr. Sniger estimates that annual revenues are expected to be at least US$7 million. A minimum of 40 employees will be assigned to the execution of this mandate.
"These contracts clearly demonstrate Riggs Distler's leading position in its main areas of expertise," said André Laramée, President and Chief Executive Officer of CVTech. "The broader service offering to Thirau's and Riggs Distler's respective customers (cross-selling) and enhanced geographical coverage resulting from the addition of Riggs Distler to our existing U.S. operations provides CVTech with significant opportunities. We are particularly excited about the installation of solar panels, as solar energy is a vital component of U.S. President Obama's New Energy for America plan whose goal is to achieve 25% of U.S. energy generated from renewable sources by 2025."
OVERVIEW OF THE CORPORATION
CVTech is a management corporation that operates in two major sectors. Through Thirau ltée, and its subsidiary, Thirau LLC, the Corporation services the electrical utility industry with the construction and maintenance of transmission and distribution lines primarily in Quebec and the eastern United States. Thirau ltee's subsidiary, J.J.L. Déboisement inc., specializes in vegetation control surrounding the lines and clearing the lines' rights of way. Thirau LLC also possesses a wholly-owned subsidiary, Riggs Distler and Company, Inc., an important provider of maintenance and construction services to the utility and heavy industrial markets. Through CVTech-IBC Inc., the Corporation services the vehicle industry through the design, manufacture and sale of continuously variable power transmission systems, or CVTs. CVTech-AAB specializes in rebuilding crankshafts and cylinders, as well as distributing engine parts. CVTech currently has approximately 1,400 employees, distributed as follows: 1,240 in the electricity segment and 160 in the CVT systems and related products segment.
This document may contain forward-looking statements that reflect management's current beliefs regarding future events. Forward-looking statements are based on a number of factors and include risks and uncertainties. Actual results may differ from forecast results. Management has no obligation beyond what is required under the law to update or revise forward-looking statements pursuant to new information or future events.
For further information regarding CVTech, the reader may consult the SEDAR database as well as the Corporation's web site at: www.cvtech.ca.
SOURCE NAPEC Inc.
For further information: For further information: André Laramée, MBA, President and Chief Executive Officer, (819) 479-7771, email@example.com; Mario Trahan, CMA, Chief Financial Officer, (819) 479-7771, firstname.lastname@example.org; MaisonBrison: Martin Goulet, CFA, (514) 731-0000, email@example.com; Source: CVTech Group Inc.