HANOI, Vietnam, March 9, 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 it plans to benefit from several key infrastructure developments in Vietnam.
Recent developments that could positively impact Cavico include the following:
- The proposed construction of a four-lane tunnel underneath the Red River, the largest river in northern Vietnam, during a meeting held in late February by the People's Committee of Hanoi. The tunnel would link Hoan Kiem District, the commercial center of Hanoi, with Long Bien District, a developing urban area of Hanoi. The committee will consider the details of the project and submit its recommendation to the Prime Minister for approval.
- The increase in loans pledged to Vietnam to $2 billion by the Asian Development Bank ("ADB") to support the development of Vietnam's infrastructure, financial planning and education sectors.
- Nokia, a multinational communications corporation, announced on March 2 that it plans to construct a $276 million manufacturing facility near Hanoi. Cavico anticipates that the infrastructure in the area surrounding the complex will need to be expanded and upgraded to support the facility's operations.
"These developments represent excellent opportunities for Cavico," commented Mr. Ha Quang Bui, CEO of Cavico. "We are particularly excited about the proposed Red River tunnel, as Cavico is the only domestic construction contractor with expertise in the use of tunnel boring machine technology and has an industry-leading technological capability to build underwater tunnels. We have years of experience working on a wide range of large-scale infrastructure construction projects and will work with project organizers to bid on and secure construction contracts as Vietnam continues to expand and develop its infrastructure."
Mr. Bui continued, "We are also encouraged by the recent $2 billion pledge from the ADB, which reflects Vietnam's growing attractiveness to foreign investors. Vietnam is Asia's second fastest-growing economy behind China, and in recent years, the Vietnamese government has implemented policies to create a more favorable investment environment. As the nation's largest non-government-owned construction company, Cavico is strongly positioned to take action to benefit from increased foreign investment in Vietnam's infrastructure sector. We see numerous growth opportunities ahead and are very optimistic about the long-term growth of our business."
Business Monitor International projects that Vietnam's construction industry will grow by 8.5% year-over-year to reach $8.5 billion in 2011, driven by the Vietnamese government's efforts to increase domestic electricity production and upgrade the nation's infrastructure.
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 . 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.
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