ADF Group Inc. announces close to 50 million dollars in new contracts and the addition of a new paint shop at its own Terrebonne complex
TERREBONNE, QC, Nov. 2, 2015 /CNW Telbec/ – ADF GROUP INC. ("ADF" or the "Corporation") (TSX: DRX) North American leader in the fabrication of steel superstructures, announces having concluded a series of commercial agreements with existing and new clients, totalling $49 million.
All these new orders were for the most part awarded in the U.S. East Coast and Quebec, and are part of different new construction projects for commercial and industrial buildings, and transport infrastructure projects. The new contracts mostly involve fabrication work, encompassing the shop drawings and the supply of material (steel), and the installation of various steel structures, including heavy steel built-up components. In addition, a number of these contracts also include special surface treatment.
The work on these new contracts will require the contribution of both of ADF’s fabrication plants in Terrebonne, Quebec and in Great Falls, in Montana, USA, and is scheduled to extend until November 2016.
As a reminder, the Corporation’s order backlog stood at $52.7 million as at July 31, 2015.
New Paint Shop
Moreover, the Corporation announces having received the approval of its Board of Directors and the permit from Quebec’s Ministère of Sustainable Development, Environment and the Fight against Climate Change (the "Ministère"), to start construction on the new 3,900 square-meter (42,000 square-foot) paint shop at its own Terrebonne complex. This development project is a strategic investment of $6.0 million. ADF’s management expects its new commercial activities, which will be complementary to its core structural steel fabrication activities, to be operational in the month of April 2016.
Mr. Jean Paschini, Co-Chairman of the Board and Chief Executive Officer, points out that, "the award of these new fabrication orders are the results of sustained and targeted marketing efforts. Concerning our decision to set up a new paint shop in our own Terrebonne complex, it stems from a global and sustainable vision. These new activities will provide ADF with new tools to capture new business opportunities and grow its markets. They will become part of our range of products and services in order to offer our clients attractive solutions that can address their expectations and priorities".
The Corporation also pointed out that numerous steps were completed toward obtaining the authorization certificate from the Ministère, and ADF worked in close collaboration with the Ministère to make sure that all requirements relating to the new and more stringent environment standards in force since 2012 have all been addressed. "We can be proud of this achievement for ADF Group future development" concluded Mr. Paschini.
Management added that the extension of ADF’s current authorization certificate for its structural steel fabrication activities in order to upgrade them to comply with the new environment standards was also part of this achievement.
About ADF Group Inc.
ADF Group Inc. is a North American leader in the design and engineering of connections, fabrication and installation of complex steel structures, heavy steel built-ups, as well as in miscellaneous and architectural metals for the non residential construction industry. ADF Group Inc. is one of the few players in the industry capable of handling highly technically complex mega projects on fast-track schedules in the commercial, institutional, industrial and public sectors. The Corporation operates two fabrication plants, one in Canada and one in the United States, as well as a paint shop in the United States.
This press release contains forward-looking statements reflecting ADF objectives and expectations. These statements are identified by the use of verbs such as "expect" as well as by the use of future or conditional tenses. By their very nature these types of statements involve risks and uncertainty. Consequently, reality may differ from ADF’s expectations.
All amounts are in Canadian dollars, unless otherwise indicated.
SOURCE ADF Group Inc
Jean Paschini, Co-Chairman of the Board of Directors and Chief Executive Officer; Jean-François Boursier, CPA, CA, Chief Financial Officer; Telephone: (450) 965-1911 / 1 (800) 263-7560; Web Site: www.adfgroup.com