DRUMMONDVILLE, QC, Sept. 19, 2012 /CNW Telbec/ - CVTech Group Inc. ("CVTech" or "the Corporation") (TSX: CVT) today announced that its subsidiary Thirau LLC ("Thirau") has been awarded three long-term contracts by subsidiaries of one of the largest utility companies in the United States. The contracts call for the provision of construction, maintenance and emergency services for overhead electrical distribution networks in New York City and its suburbs over a three-year period beginning in September 2012 and reaching out to August 2015. The total value of the contracts is estimated at US$68.8 million.
The three contracts consist of the following:
- A new contract valued at US$35.4 million to provide services for networks located in the Bronx and Westchester County, New York.
- A US$17.6-million contract to provide services for networks located in the northwestern suburbs of New York City. This contract replaces an existing mandate with a new three-year agreement.
- A new contract valued at US$15.8 million to provide services for networks located in Brooklyn, Queens and Staten Island.
"These significant long-term contracts attest to the strength of our relationship with large-scale utility companies in the Eastern United States. It also provides evidence that Thirau is well positioned to capture strategic business opportunities in its markets by virtue of its solid reputation, proven expertise and excellent safety record. We are looking forward to further expand the scope of our involvement with the major utility companies," said André Laramée, President and Chief Executive Officer of CVTech.
OVERVIEW OF THE CORPORATION
CVTech is a management company operating in two major 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.
SOURCE: CVTECH GROUP INC.
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Source: CVTech Group inc.
André Laramée, MBA
President and Chief Executive Officer
Mario Trahan, CPA, CMA
Chief Financial Officer
Martin Goulet, CFA