HANOI, Vietnam, March 21, 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 Construction Manpower & Services, has signed a contract to construct the tunnel roof and grout the arch consolidation of a 1.4-mile-long rock transport tunnel at the Nghi Son cement plant. The contract is valued at approximately $1.3 million and includes cost escalation clauses that may increase the revenues associated with the project. Cavico expects to complete the project within seven months of the start of construction.
The Nghi Son cement plant is located in the village of Hai Thuong in Thanh Hoa Province. The plant is a joint venture between Vietnam Cement Industry Corp. and two Japanese corporations, Taiheiyo Cement Corp. and Mitsubishi Materials Corp. The plant currently produces 2.15 million tons of cement per year. Upon the completion of Phase II of construction, the plant will have an annual production capacity of 4.3 million tons per year and will be one of the largest cement plants in Vietnam.
"I am personally very pleased that Cavico has signed this contract for Nghi Son, where some of our founders, including myself, worked as construction contractors in 1996. The experience and expertise we gained working at Nghi Son were instrumental in the formation of Cavico," commented Mr. Hung Manh Tran, executive vice president of Cavico. "This contract represents a strong vote of confidence in Cavico's ability to deliver first-rate, efficient work on large tunnel construction projects. We are pleased with our contract wins for the first three months of 2011 and will continue to aggressively bid on new projects with the goal of growing our backlog and increasing revenues."
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.
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