Edmonton, Alberta – May 24, 2007: Aecon Group Inc. (TSX: ARE) announced today that its Industrial Western Canada Division and its Civil and Utilities Division have secured two contracts totaling $60 million in the Alberta oilsands for key clients BA Energy and Kinder Morgan Canada Terminals.
For the first project, Aecon will provide pipe fabrication, module assembly and related construction services, as well as site installation for BA Energy's Heartland Upgrader project. Aecon Industrial will provide pipe fabrication services and assemble approximately 70 pipe rack modules for the project. Aecon's Civil and Utilities division will install the foundations for the pipe rack modules. Work began in the first quarter of 2007 and is scheduled to be completed by the end of 2007.
Under the second contract, Aecon will provide fabrication and construction services to Kinder Morgan Canada Terminals for work on their Edmonton North 40 Terminal Expansion project. Aecon Industrial will be responsible for all pipe fabrication and mechanical construction on the project, while Aecon Civil and Utilities will provide on-site civil construction services. The work will begin in the second quarter of 2007 and is scheduled to be completed in the third quarter of 2007.
“These projects demonstrate the merits and value to our clients in Aecon's ability to deliver a wide range of industrial and civil construction services in a seamless package to our customers,” said Scott Balfour, President and CFO, Aecon Group Inc. “This is particularly important in a market where performance is a prime requisite as we see in Alberta today.”
“These new contracts are part of our controlled growth approach in the northern Alberta market and will contribute greatly to our improving backlog,” said Stan Shewchuk, President of Aecon Industrial Western Canada. “We are progressing exceptionally well on our growth plan and will continue to be keenly focused on this market.”
“As one of Canada's largest civil and utilities contractors, we bring considerable strength and experience as well as the capacity required to meet the growing demand in Western Canada,” said Teri McKibbon, President, Aecon Civil and Utilities. “These awards illustrate our broadened service offerings in Western Canada and demonstrate the combined capabilities of Aecon's Industrial and Civil and Utilities divisions.”
Aecon Group Inc. is Canada's largest publicly traded construction and infrastructure development company. Aecon and its subsidiaries provide services to private and public sector clients throughout Canada and internationally.