DRUMMONDVILLE, QC, July 4, 2012 /CNW Telbec/ - CVTech Group Inc. ("CVTech" or the "Corporation") (TSX: CVT) today announced that its subsidiary Thirau LLC has been granted a one-year extension, to May 31, 2013, on a contract to provide electrical services to National Grid USA ("National Grid"). This extension represents the first of two (2) one-year renewal options of a long-term agreement awarded in 2009. Revenues over this one-year extension period are estimated at US$20 million.
Under the terms of the agreement, Thirau LLC will provide construction, maintenance and repair of electrical distribution lines in National Grid's northeastern US territory. The agreement also calls for the provision, if required, of storm response work in the same region. Such emergency work would represent incremental revenues for the Corporation.
"This contract extension highlights the high quality of services provided by Thirau LLC to National Grid. We are very pleased to further expand our solid business relationship with this leading utility service provider," said André Laramée, President and Chief Executive Officer of CVTech.
OVERVIEW OF THE CORPORATION
CVTech is a management company operating in two sectors. Through Thirau ltée and its subsidiaries Riggs Distler Inc. and Thirau LLC, the Corporation provides services to the electric power industry for the maintenance of transmission and distribution lines, primarily in Quebec, Ontario 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.
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Source: CVTech Group Inc.
André Laramée, MBA
President and Chief Executive Officer
Mario Trahan, CMA
Chief Financial Officer
Martin Goulet, CFA