DRUMMONDVILLE, QC, Jan. 9, 2012 /CNW Telbec/ - CVTech Group Inc. ("CVTech" or the "Corporation") (TSX: CVT) today announced that its Energy segment subsidiaries have won contracts with a total value in excess of $38.0 million.
First, the subsidiary Riggs Distler & Company, Inc. ("Riggs Distler") has won a US$9.5-million contract for the installation of two rapid-start coal-fired boilers at Veolia Energy North America's Grays Ferry power plant in Philadelphia, Pennsylvania. The project is scheduled to start shortly and conclude in July 2012. It will employ up to 80 workers on site.
Second, Riggs Distler was awarded a US$8.0-million engineering procurement and construction contract by a US-based electricity provider with regards to the installation of a five megawatt utility grade photovoltaic solar ground mounted system in southern New Jersey. Work is expected to begin shortly and will be spread out over a three-month period. Up to 80 employees will be assigned to the project.
Third, Public Service Electric and Gas Company ("PSE&G"), one of the 10 largest combined electric and gas companies in the United States, awarded Riggs Distler a contract valued at up to US$4.0 million to design and install as many as 800 electricity distribution poles in New Jersey. Work will be carried out in the first six months of 2012 and should require approximately 25 employees.
Meanwhile, the subsidiary Thirau ltée ("Thirau") has won a new contract from Hydro-Québec worth approximately $6.8 million for the construction of a 37-kilometre 120-kV transmission line connecting a wind farm at Saint-Robert-Bellarmin, in the Mégantic region, to the Bolduc substation at Saint-Martin, in the Beauce region. The work is scheduled to begin in January 2012 and should be completed four months later. Approximately 85 employees will be assigned to this contract.
Finally, the subsidiary J.J.L. Déboisement inc. ("J.J.L.") has been awarded two new Hydro-Québec contracts for the control of vegetation on rights-of-way of distribution lines. The contracts cover territories comprising Montreal-West, Montréal-East and the l'Assomption region and their total value is approximately $10.0 million. Work is expected to begin in January 2012 and to continue for two years. Each contract provides two options for two-year renewals at the customer's discretion. Approximately 30 people will be employed in the work.
"These contracts highlight the expertise of our subsidiaries and their strong relationships with the main players in their target markets," said André Laramée, CVTech President and Chief Executive Officer. "We are very proud of the contract with Veolia Energy North America, which demonstrates the success of Riggs Distler's efforts to reposition and diversify its mechanical operations. Meanwhile, Thirau's new contract for the construction of a transmission line attests to growing demand for the connection of renewable energy sources to the power grid. Finally, J.J.L. has once again confirmed its leadership in a specialized market segment."
OVERVIEW OF THE CORPORATION
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 maintenance of transmission and distribution lines, primarily in Quebec and the eastern United States. Another Thirau ltée 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 CVT systems. CVTech-AAB inc. specializes in rebuilding crankshafts and cylinders and in distributing engine parts.
This document may contain forward-looking statements that reflect management's current expectations 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.
Source: CVTech Group Inc.