NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: AMERICAN ECO CORPORATION
TSE SYMBOL: ECX
NASDAQ SYMBOL: ECGOF
FEBRUARY 3, 1997
American Eco Joint Venture Opens Multi- Billion Dollar
Latin American Market
HOUSTON, TEXAS - American Eco Corporation announced it has signed
a letter of intent to form a joint venture with CVG International
America (CVGIA), Caracas, Venezuela. CVGIA provides exclusive
services to Corporacion Venezolana de Guyana (CVG), a public
entity established in 1960 to develop the Guyana region which
contains 80 percent of the countries forest and mining reserves
and 75 percent of the hydroelectric potential. CVG operates
mining and industrial operations in gold, bauxite, aluminum,
steel, power and forest products. The continual development of
the region and the pending privatization of the aluminum sector
requires environmental remediation and long term environmental
management.
CVGIA and American Eco Corporation have agreed to form a joint
venture to provide comprehensive industrial, environmental,
engineering, and health and safety services to the CVG companies.
An initial study by the international consulting firm, A.C.
Little, estimates the DVG environmental program demands are in
excess of $500 million. The Environmental Business Journal has
estimated the environmental market in Venezuela at $390 million
per year, and the total Latin American environmental market at
$7.8 billion.
Michael E. McGinnis, President and CEO of American Eco stated,
"The joint venture with CVGIA is the result of our company's
efforts in Venezuela for the past three years. The proposed
venture will serve as a great opportunity for many of our
operating units to take advantage of the rapidly expanding market
in Venezuela, and throughout South America."
American Eco is a leading North American provider of single source
construction, management, maintenance, and environmental
remediation services in the refining, petrochemical, utility, and
forest products industries.
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