HANOI, Vietnam, March 24, 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 Infrastructure, is negotiating for several new contracts as the Company begins the second quarter of 2011. Cavico expects the total value of these contracts to be approximately $6 million.
Cavico is negotiating to supply 10.6 million cubic feet of various types of construction stones to Vinh Tan Thermopower Plant. The value of this contract is approximately $2.5 million.
Vinh Tan Thermopower Plant is located in Tuy Phong District, Binh Thuan Province. As planned, Vinh Tan Thermopower Center has total investment capital of about $6.1 billion, including three power plants and one seaport with a total designed capacity of 4,400 MW, producing about 28.6 billion KWh per year.
Cavico is negotiating with Tay Nguyen Mineral Exploitation Company, a subsidiary of East North Company of Vietnam's Ministry of Defense, for Phase II of a construction contract to excavate and remove dirt and rocks at Dong Giao Coal Mine. The value of this contract is roughly $2 million.
In November 2010, Cavico was awarded Phase I of a construction contract at this mine. Dong Giao Coal Mine is located at Tam Diep Village in Ninh Binh Province in northern Vietnam. The mine has estimated coal reserves of 35.3 million cubic feet. A total of 353.1 million cubic feet of dirt and rocks must be excavated and removed in multiple stages.
Cavico has also entered negotiations with Tay Nguyen Mineral Exploitation Company to provide construction services for Dak Nong Ecological Dam in Dak Nong Province. The value of this contract is approximately $1.5 million.
"Cavico is a reputable contractor that possesses many years of experience in the construction sector in Vietnam," commented Mr. Hung Manh Tran, executive vice president of Cavico. "We also employ a highly skilled work force and a fleet of modern machines. Therefore, we are very confident that we will be awarded these contracts. We will continue to regularly update the investment community regarding these and other new contracts."
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.