Three contracts involve services related to renewable energy sources
DRUMMONDVILLE, QC, June 10 /CNW Telbec/ - CVTech Group Inc. ("CVTech" or the "Corporation") (TSX: CVT) today announced that its Energy segment subsidiaries were awarded several important contracts totaling more than $40 million.
First, Thirau ltée ("Thirau") was awarded two contracts by Hydro-Québec for the construction of two electric power transmission line sections in the Gaspésie region. The work is part of a major project by Hydro-Québec involving the connection of wind farms to its electricity transmission system. The combined value of the contracts is estimated at more than $35 million. The work is scheduled to begin before the end of June and should be completed in July 2011.
Under the terms of the agreement, Thirau will construct a 106-kilometre long, 230 kilovolt line ("kV") between the substations of Goémon, Mont-Louis and Gros-Morne, and a 10-kilometre, 161 kV line between the substation of Rivière-au-Renard and the Anse-à-Valleau junction. According to Alain Gagné, Chief Operating Officer, Energy segment of CVTech, approximately 200 employees will be assigned to carry out these works.
CVTech's U.S. subsidiaries were also awarded contracts totaling close to US$5 million. These include:
1. Several contracts amounting to US$3.3 million awarded by Public
Service Electric and Gas Company ("PSE&G"), one of the 10 largest
combined electric and gas companies in the United States, to provide
maintenance on PSE&G's overhead electricity distribution network,
mainly in northeastern New Jersey. These contracts should be completed
by December 2010 and work will be carried out by approximately
2. A strategic US$1.4-million contract awarded by a large North American
solar energy services provider to install ground-mounted solar panels
at the site of a solar farm in New Jersey. Installations are expected
to be completed by the end of 2010.
"Winning three renewable energy contracts has a strategic impact on CVTech because of the growing importance of these energy sources", declared André Laramée, President and Chief Executive Officer of CVTech. "These new contracts bring up to four the number of mandates linked to renewable energy that have been assigned to our Energy segment subsidiaries in the last few months and CVTech is well-positioned to become a prominent service provider for these high-growth markets. In addition, all contracts reflect the solid business relationships our subsidiaries have established with leading North American utility companies."
CVTech is a management company operating in two major sectors. Through Thirau ltée and its subsidiary Thirau LLC, the Corporation provides services to the electric power industry for the construction and maintenance of transmission and distribution lines primarily in Quebec and the eastern United States. Thirau ltée's subsidiary J.J.L. Déboisement inc. specializes in control of vegetation surrounding power lines and in clearing rights of way. Thirau LLC's wholly owned subsidiary Riggs Distler & Company, Inc. is a leading provider of maintenance and construction services to the utility and heavy industrial markets. In the CVT systems and related products segment, the Corporation, through CVTech-IBC Inc., designs, manufactures and sells continuously variable power transmission systems, or CVTs. CVTech-AAB specializes in rebuilding crankshafts and cylinders and in distributing engine parts. CVTech currently has approximately 1,445 employees, consisting of 1,300 in the Energy segment and 145 in the CVT systems and related products segment.
The present document may contain forward-looking statements that reflect the current expectations of management with regard to future events. These forward-looking statements depend on a certain number of factors and are subject to risks and uncertainties. The actual results could differ from those anticipated. Management undertakes no obligation to update or revise the said forward-looking statements on receipt of new information or subsequent to future events other than the ones required by law.
For further information with regard to CVTech, the reader is invited to consult the SEDAR database and the Corporation's Website at: www.cvtech.ca.
SOURCE NAPEC Inc.
For further information: For further information: André Laramée, MBA, President and Chief Executive Officer, (819) 479-7771, firstname.lastname@example.org; Mario Trahan, CMA, Chief Financial Officer, (819) 479-7771, email@example.com; MaisonBrison: Martin Goulet, CFA, (514) 731-0000, firstname.lastname@example.org; Source: CVTech Group inc.