TORONTO, June 27, 2016 /CNW/ - Aecon Group Inc. (TSX:ARE) announced today that an Aecon joint venture (JV) has been awarded two nuclear energy contracts by Ontario Power Generation (OPG) valued at $223 million for Aecon's share.
Under the first contract, a JV between Aecon (60%) and SNC-Lavalin Nuclear Inc. (40%) has been awarded a $265 million turbine generator refurbishment contract by OPG to carry out work on all four steam turbine generators at the Darlington Nuclear Generating Station in Ontario. The scope of work includes a complete overhaul of the 935 megawatt steam turbines, generators, moisture separator reheaters, condenser repairs, and the implementation of new control systems. Work has commenced and is expected to be complete in 2025.
Additionally, the same JV was awarded a $127 million engineering, procurement and construction contract for the Retube Waste Processing Building at the Darlington Nuclear Generating Station. Under this contract, work is split 50% to Aecon and 50% to SNC-Lavalin Nuclear Inc. Work is expected to be complete in 2017.
In January 2016, Aecon was awarded a $1.375 billion contract as part of the $2.75 billion 50/50 JV between Aecon and SNC-Lavalin Nuclear Inc. to carry out the execution phase of its Re-tube and Feeder Replacement project for OPG's Darlington Nuclear Generating Station Refurbishment Program.
"Our continued partnership with OPG further solidifies Aecon's reputation as a preferred contractor to Canada's energy sector and underscores our strong backlog and diversification in the energy segment," said Teri McKibbon, President and Chief Executive Officer, Aecon Group Inc. "Aecon remains steadfast in our commitment to delivering end-to-end turnkey solutions for our diverse range of clients across the country."
"We are pleased to continue our work with OPG as part of the larger Darlington Nuclear Refurbishment Program while extending the life of the turbine generators for the next thirty years," said Mark Scherer, Executive Vice President, Aecon Energy.
Aecon Group Inc. (TSX: ARE) is a Canadian leader and partner-of-choice in construction and infrastructure development. Aecon provides integrated turnkey services to private and public sector clients in the Infrastructure, Energy and Mining sectors and provides project management, financing and development services through its Concessions segment. Aecon is also pleased to be consistently recognized as one of the Best Employers in Canada. For more information, please visit www.aecon.com and follow us on Twitter at @AeconGroup.
The information in this press release includes certain forward-looking statements. These "forward-looking" statements are based on currently available competitive, financial and economic data and operating plans but are subject to risks and uncertainties. In addition to events beyond Aecon's control, there are factors which could cause actual or future results, performance or achievements to differ materially from those expressed or inferred herein including, but not limited to: the timing of projects, unanticipated costs and expenses, general market and industry conditions and operational and reputational risks, including Large Project Risk and Contractual Factors. Readers are referred to the specific risk factors relating to and affecting Aecon's business and operations as filed by Aecon pursuant to applicable securities laws. Forward-looking statements may include, without limitation, statements regarding the operations, business, performance, prospects, strategies and outlook for Aecon. Forward-looking statements, may in some cases be identified by words such as "will," "plans," "believes," "expects," "anticipates," "estimates," "projects," "intends," "should" or the negative of these terms, or similar expressions. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Aecon undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
SOURCE Aecon Group Inc.