HANOI, Vietnam, April 28, 2011 (GLOBE NEWSWIRE) -- Cavico Corp. (Nasdaq:CAVO) ("Cavico" or the "Company"), a major infrastructure, civil engineering, design and construction conglomerate based in Vietnam, today announced that its subsidiary, Cavico Bridge and Tunnel, has completely broken through the final section of tunnel at the A Luoi Hydropower project. At 8.7 miles long and 21.3 feet wide, the tunnel excavated by Cavico is considered the longest and most sophisticated tunnel to be constructed in Vietnam.
In July 2007, Cavico was awarded a contract to excavate the headrace tunnel as well as four sub-tunnels, a surge tank, a vertical shaft, and a service access road. The Company broke through the first and second sub-tunnels in August and December 2010, respectively. Cavico employed the New Austrian Tunneling Method ("NATM") and blasting method to excavate the main and sub-tunnels. The Company will continue its tunnel concrete lining work at the project. Cavico expects the A Luoi project to generate $53 million in total revenues for the Company.
The A Luoi Hydropower plant is built on the A Sap River, located in Thua Thien Hue Province in central Vietnam. The plant is owned by the Central Hydropower Joint Stock Co., a Vietnam-based company engaged in hydropower generation. The 170-megawatt-capacity hydropower plant is expected to generate approximately 686 million kilowatt-hours of energy annually for the region.
"We are very pleased to complete the tunnel construction at the A Luoi Hydropower project," commented Mr. Hung Manh Tran, executive vice president of Cavico. "This achievement is the result of many months of dedication and hard work by Cavico's employees. Additionally, this breakthrough represents a major step toward completing our role in the A Luoi project and collecting the remaining balance of the contract revenue. We expect the plant will begin operations in the near future, contributing power to Vietnam's national grid."
About Cavico Corp.
Cavico Corp. is focused on large infrastructure projects, which include the construction of hydropower facilities, dams, bridges, tunnels, roads, mines and urban buildings. Cavico is also making investments in hydropower facilities, cement production plants, mineral exploration and urban developments in Vietnam. The company employs more than 3,000 employees on projects worldwide, with offices throughout Vietnam and a satellite office in Australia. The Company now has three subsidiaries, Cavico Mining (HSX:MCV), Cavico Industry & Mineral (HNX:CMI), and Cavico Construction Manpower & Services ( HNX: CMS ), which are listed in Vietnam on the Ho Chi Minh and Hanoi Stock Exchanges.
Founded in 2000, Cavico is a major infrastructure construction, infrastructure investment and natural resources conglomerate headquartered in Hanoi, Vietnam. Cavico is highly respected for its core competency in the construction of mission-critical infrastructure including hydroelectric plants, highways, bridges, tunnels, ports and urban community developments. One of the Company's primary competitive advantages is its ability to nurture a project "from concept through completion" with a vertical portfolio of interrelated investment, permitting, design, construction management and facility maintenance services. Cavico's project partners include top multi-national corporations and government organizations. The Company employs more than 3,000 full-time, part-time, and seasonal workers. For more information, visit http://www.cavicocorp.com. Information on the Company's Web site or any other Web site does not constitute a portion of this release.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the Company's ability to obtain the necessary financing to continue and expand operations, to market its construction services in new markets and to offer construction services at competitive pricing, the Company's ability to complete projects in the time frame specified; anticipated revenue from the projects to attract and retain management, and to integrate and maintain technical information and management information systems; the effects of currency policies and fluctuations, general economic conditions and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission and other regulatory authorities. These statements include, without limitation, statements regarding our ability to prepare the Company for growth; the Company's planned expansions, and predictions and guidance relating to the Company's future financial performance. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
CONTACT: Cavico Corp. Timothy Pham Vice President and Director +1-714-843-5456 cavicohq@cavico.us Investor Relations Contact: Dave Gentry RedChip Companies, Inc. 800-733-2447, Ext. 104 407-644-4256, Ext. 104 info@redchip.com