DRUMMONDVILLE, QC, April 4, 2012 /CNW Telbec/ - CVTech Group Inc. ("CVTech" or "the Corporation") (TSX: CVT) today announced that its subsidiary Thirau ltée ("Thirau") has been awarded several contracts with a total value of nearly $39.0 million. These contracts are mainly related to pole installation and the construction of electricity transmission lines in the province of Quebec.
First, Thirau has obtained from Hydro-Québec an important contract to install poles and anchors for electrical distribution lines in Hydro-Québec's Richelieu territory. The two-year contract is valued at nearly $21.0 million, or slightly more than $10.0 million per year. Work will begin in April 2012 and will be spread out until March 31, 2014. Approximately 50 employees will be assigned to the project.
Bell Canada also awarded Thirau a two-year contract with a total value of $5.6 million to install poles and anchors in the Montreal South Shore and Sherbrooke regions. The agreement also includes a one-year renewal option exercisable at the client's discretion. The project will require the services of about 15 workers. This contract allows CVTech to renew its business relationship with Bell Canada.
In addition, Thirau has been awarded by Hydro-Québec three contracts with a total value of $12.3 million for the construction of electricity transmission lines. These contracts include:
- An $8.4-million contract for the construction of a 23-kilometre, 120 kilovolt ("kV") line to connect the new Neubois substation, located in Saint-Narcisse-de-Beaurivage (Chaudière-Appalaches), to Hydro-Québec's electricity transmission network. Work is expected to begin in mid-April 2012 and be carried out over a period or about five months. Approximately 100 employees will be assigned to the project.
- A contract worth approximately $2.8 million for the construction of six pylons for the Montagnais-Normand 315 kV line. This work is part of connecting the Bloom Lake mining project, on Quebec's North Shore, to the Hydro-Québec grid. Work is already under way and should extend for a period of approximately three months. It is anticipated that about 20 employees will carry out the work.
- A contract valued at $1.1 million for the partial construction of a 12-kilometre, 120 kV line to connect the De l'Érable wind farm, in the Bois-Francs region, to the Bois-Francs-Plessisville line. Work is expected to begin in April 2012 and spread over a period of about three months. Approximately 20 employees will be assigned to the project.
"These contracts demonstrate Thirau's leading position in its main business markets," declared André Laramée, President and Chief Executive Officer of CVTech. "We are proud to obtain a contract from Bell Canada and we are confident to establish a long-term relationship with this large-scale company. Furthermore, as evidenced by the contract on the North Shore, Thirau is favourably positioned to capture significant benefits from the electrical infrastructure investments required to support development in Northern Quebec."
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.
For further information:
Source: CVTech Group inc.
André Laramée, MBA
President and Chief Executive Officer
Mario Trahan, CMA
Chief Financial Officer
Martin Goulet, CFA