DRUMMONDVILLE, QC, April 17, 2014 /CNW Telbec/ - CVTech Group Inc. ("CVTech" or "the Corporation") (TSX: CVT) today announced that its subsidiaries have been awarded new contracts worth a total value of approximately $50.7 million.
First, the U.S. subsidiary Riggs Distler & Company, Inc. ("RDC") obtained contracts totalling US$30.7 million (Cdn $33.7 million). These awards include:
- A US$15.5 million contract for the construction of three ground mounted solar systems totalling 25 MW in New Jersey. A total of 195 employees will be assigned to these projects which are expected to be completed by the end of the third quarter of 2014.
- A US$7.7 million contract for mechanical work at a power generation facility in New Jersey. This project will be carried out during the second quarter of 2014 and will require the services of approximately 60 workers.
- A master service agreement estimated at US$7.5 million over three years to carry out work on the natural gas distribution network of a major utility service provider in Maryland. This multi-year contract will begin on June 1, 2014 and is expected to employ about 30 workers.
Second, the subsidiary Thirau ltée ("Thirau") was awarded an important contract by Hydro-Québec valued at close to $17.0 million for the construction of two sections of 315 kV electricity transmission lines, each approximately 6 kilometers long, to feed the Lanaudière substation, located in Joliette, and to connect the Blainville substation, located in Blainville, to the grid. Work is expected to begin in May 2014 and should continue until November 2014. Approximately 100 workers will be employed on the project.
"These new contracts confirm our subsidiaries' solid reputation with regards to their expertise in their respective markets," said André Laramée, President and Chief Executive Officer of CVTech. "Thirau has a longstanding relationship with Hydro-Québec and this contract further highlights its notoriety in the construction of transmission lines. Meanwhile, RDC continues to make further inroads in the growing market for renewable sources of energy, while also continuing to be an important player in providing mechanical work to the power generation market."
OVERVIEW OF THE CORPORATION
CVTech is a company operating in the energy sector. The Corporation is a leading provider of construction and maintenance services to the public utility and heavy industrial markets mainly in Quebec, Ontario and the eastern United States. Through its subsidiaries, the Corporation provides maintenance and construction services for electricity transmission and distribution networks, substations and electrical power houses, as well as the control of vegetation on rights-of-way for electrical lines.
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 assumes 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.
For further information:
André Laramée, MBA
President and Chief Executive Officer
Mario Trahan, CPA, CMA
Chief Financial Officer
Martin Goulet, CFA