TORONTO, June 24 /CNW/ - Aecon Group Inc. (TSX: ARE) today announced that
its wholly-owned subsidiary, Innovative Steam Technologies (IST), has been
awarded two contracts totalling $10 million to supply its Once-Through Steam
Generator (OTSG) units internationally.
The first contract is being executed in partnership with Macchi Steam and
Power Generation of Italy, IST's European partner. The project calls for the
design and supply of two OTSG modules for Statoil Hydro, to be located 200
miles off the coast of Norway. The single lift modular plant will be installed
on the Oseberg D offshore natural gas production platform in the North Sea.
The OTSG is replacing a standard drum-type HRSG which has been in operation
less than ten years. Once installed, the OTSGs will recover waste heat from
two 28 megawatt gas turbines and produce steam for an eight megawatt steam
turbine. The project is scheduled for a May 2009 delivery.
The relationship between IST and Macchi allows both companies to apply
their market knowledge and sales resources to provide assistance to each other
in obtaining contracts, with IST supporting Macchi's sales activities in the
North American Market and Macchi supporting IST's sales activities in Europe
and the Middle East. As opportunities are identified, IST and Macchi will work
together to deliver the projects as appropriate in each case.
Under the terms of the second contract IST will supply an OTSG unit to
Entek Electrik Uretimi A.S. in Izmit, Turkey. The OTSG unit will recover waste
heat from a 48 megawatt gas turbine, with the steam produced being sent to a
steam turbine and then exported to the Pirelli Tire plant. Work is already
underway, with a scheduled delivery date for the unit of January 2009. This
contract will bring IST's OTSG installations in Turkey to a total of eight,
with five awarded in the last four months alone.
The new contracts bring IST's backlog to its highest level since 2001,
IST's strongest year on record.
"The Statoil project is an important strategic step forward for IST. It
cements our strategic partnership with Macchi, as it is the first project
being executed under the partnership," said Bob Dautovich, President of IST.
"And the Entek project demonstrates the strong relationships we have
established in Turkey, as well as the value that IST provides to our business
Innovative Steam Technologies is the world leader in the design and
fabrication of once-through-steam-generators and is a wholly owned division of
Aecon Group Inc.
Aecon Group Inc. is Canada's largest publicly traded construction and
infrastructure development company. Aecon and its subsidiaries provide
services to private and public sector clients throughout Canada and
internationally. Aecon is pleased to be recognized as one of the 50 Best
Employers in Canada as published by Report on Business Magazine.
The information in this news release includes certain forward-looking
statements. These statements are based upon assumptions that are subject to
significant risks and uncertainties which are discussed in greater detail in
the section entitled "Risk Factors and Uncertainties" in Management's
Discussion and Analysis of operating results and Financial Condition for the
year ended December 31, 2007 filed on SEDAR at www.sedar.com. Although Aecon
believes that the expectations reflected in forward-looking statements are
reasonable, it can give no assurance that the expectations of any
forward-looking statements will prove to be correct.
For further information:
For further information: Mitch Patten, Vice President, Corporate
Affairs, Aecon Group Inc., (416) 297-2615, email@example.com, www.aecon.com