Trimac announces new business award with Hammerstone Corporation
CALGARY, May 31, 2012 /PRNewswire/ - Trimac Transportation Ltd. ("Trimac") (TSX: TMA), Canada's premium provider of bulk trucking, logistics, tank repair and cleaning services, announced today that it has entered into a new contract to haul a significant volume of limestone aggregate on behalf of Hammerstone Corporation ("Hammerstone") in Fort McMurray, Alberta.
"The Hammerstone contract enhances Trimac's market presence in the Fort McMurray region. As a result of this award and the existing products and services we perform in this key economic hub of Alberta, we anticipate additional growth opportunities and employment for our professional drivers," said Ed Malysa, President and COO of Trimac.
Based on Trimac management's expectations, the contract is anticipated to generate approximately $36 million in revenue over its three-year term. This contract begins a new strategic partnership with Hammerstone. Trimac's limestone aggregate hauling operations are expected to reach full capacity in the third quarter of 2012.
Hammerstone, which is based in Calgary, is part of the Brookfield Asset Management group of companies. Hammerstone owns and operates a limestone quarry with over 750 million tonnes of readily accessible limestone reserves in the heart of Northern Alberta's mineable oil sands. Hammerstone is uniquely positioned to provide a local, secure, year-round, long term source of limestone aggregate to all nearby oil sands and construction projects.
This press release contains information and statements of a forward-looking nature concerning the value of the Hammerstone contract to Trimac. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. In making such statements, Trimac has assumed that the Canadian economy would continue to strengthen and that the volume of products hauled and miles driven by Trimac for Hammerstone would be consistent with estimates provided by Hammerstone and its customer. Certain factors may cause actual results to differ from such statements including, without limitation, general market trends and conditions, increased competition and pricing pressures in the limestone aggregate industry and the trucking industry, an increase or decrease in limestone aggregate production volumes and an increase or decrease in the product volumes hauled or miles driven by Trimac for Hammerstone. As a result, readers are advised that actual results may differ from expected results.
SOURCE Trimac Transportation Ltd.