Finning Announces C$360 Million Mining Equipment and Support Services Deal With Suncor
VANCOUVER, BRITISH COLUMBIA–(Marketwire – May 6, 2008) – Finning International Inc. ("Finning") (TSX:FTT) announced today that its Canadian division, Finning (Canada), has secured a major mining equipment and support services deal with Suncor Energy Inc. ("Suncor") for a total value of approximately C$360 million.
Suncor's equipment purchase includes 22 Caterpillar 797B mining trucks, 19 D11T and 5 D8T track-type tractors (bulldozers). In addition, Suncor has engaged Finning to support this equipment through various customer support service agreements, including parts and labour, ranging in term to approximately 10 years.
The equipment is scheduled to be delivered over the course of 2008 and 2009. The new 797 trucks will be used to meet increased production levels from existing operations as well as mine expansions. With the delivery of these large mining trucks, Suncor's fleet of Caterpillar mining trucks will grow to 67 units, of which 51 will be 797s and 16 are 793 model trucks.
"Growth in mining activity in the oil sands continues to be very strong, and Finning's position as the major supplier of large mobile mining equipment and as the key service partner to the oil sands producers continues to expand," said Mike Waites, incoming president and CEO of Finning International Inc. "The Caterpillar equipment fleets in this region have grown substantially in the past few years. There are currently 120 of the 797 haul-trucks operating in the Alberta oil sands, and in 2008 we are scheduled to deliver over 65 additional 797s. The significant expansion of the 797 fleet in 2008 and 2009 will have a very positive impact on our customer support services revenues in two to three years when these trucks, the largest mining trucks in the world, begin their major component replacement programs."
"Suncor is our valued customer and one of the original producers in the Alberta oil sands. We are proud to be able to build on our long-standing partnership as they continue to expand their oil production," said Ian Reid, president of Finning (Canada). "Finning's growing service capabilities in the region, including over 700 Fort McMurray based employees, allow us to continue meeting Suncor's and our other customers' increasing demands for equipment, parts, maintenance and rebuild."
Finning International Inc. is the world's largest Caterpillar equipment dealer. The Company sells, rents and provides customer support services for Caterpillar equipment and engines in Western Canada, the U.K., and parts of South America. Headquartered in Vancouver, British Columbia, Canada, Finning International Inc. is a widely held, publicly traded corporation, listed on the Toronto Stock Exchange (symbol FTT). For additional information please visit www.finning.com.
This release may contain forward-looking statements and information, which reflect the current view of Finning International Inc. with respect to future events and financial performance. Any such forward-looking statements are subject to risks and uncertainties and Finning's actual results of operations could differ materially from historical results or current expectations. Finning assumes no obligation to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein do not materialize.
Refer to Finning's annual report, management information circular, annual information form and other filings with the Ontario Securities Commission and Toronto Stock Exchange for further information on risks and uncertainties that could cause actual results to differ materially from forward-looking statements contained in this report.
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