UCAR International Inc. and CGI announce strategic partnership; agreement includes 10 year outsourcing contract for global IT services
Nashville, Tennessee --2001/04/05
UCAR International Inc. (NYSE:UCR) and CGI (NYSE: GIB, TSE:GIB.A)
today announced the signing of a ten-year contract valued at
approximately US$75 million, whereby CGI becomes the delivery arm
for UCAR's Global IT service requirements. Under the outsourcing
components of this agreement, CGI will manage UCAR's data center
services, networks, desktops, telecommunications and legacy
systems.
"By creating this strategic alliance with CGI, we are
transforming our IT service capability into an efficient, high
quality enabler for UCAR's global supply chain initiatives, as
well as contributing to our cost reduction objectives," said Gil
Playford, chairman of UCAR. "The alliance supports our highest
priority, which is return on invested capital (ROIC) and the
delivery of shareholder value by providing cash proceeds from
asset sales, reductions in SG&A expense and improved capital
allocation. CGI is an excellent choice for us as they provide
full end-to-end services around the world and flexibility in
meeting our specific business needs," Playford also commented.
Francois Chasse, executive vice-president and general manager,
USA for CGI added: "We are very pleased about this new
partnership. Our high quality IT processes, strong J.D. Edwards
expertise and international presence were important factors in
UCAR's decision. This win highlights our ability to provide full
outsourcing to large U.S. based multinational companies and
positions us well for further expansion into the U.S.
marketplace."
Effective April 16, 2001, UCAR's data and technology management
operations will be handled by one of CGI's data centers.
Approximately 30 of UCAR's U.S. based employees will be
integrated into CGI's US operations as part of the initial phase
of this agreement.
The contract also engages CGI for the design and implementation
of UCAR's global information and advanced manufacturing and
demand planning systems, using J.D. Edwards. The systems will
span across 18 locations in Europe, North America, South America
and South Africa. Implementation will commence following
completion of the systems design phase, which will begin
immediately and is expected to conclude by year end.
About UCAR
UCAR International Inc. is one of the world's largest
manufacturers of high quality natural and synthetic graphite and
carbon based products and services, providing energy solutions to
customers in more than 80 countries. It has 15 manufacturing
facilities in 8 countries and has the largest share of the free
trading markets in all of its major product lines. Products
include graphite and carbon electrodes and cathodes, and flexible
graphite. Graphite electrodes are consumed primarily in the
production of steel in electric arc furnaces, the steel making
technology used by all "mini-mills," and for refining steel in
ladle furnaces. Carbon electrodes are consumed in the manufacture
of silicon metal. Cathodes are used in the production of
aluminum. Flexible graphite is used in high temperature fluid
sealing and gasket applications and is the basis for highly
engineered products and solutions for applications in fuel cell,
electronics and thermal management applications. Its flexible
graphite business is operated by our wholly owned subsidiary,
Graftech Inc.. For news releases via fax, dial 1-800-239-5323.
For additional information on UCAR, call 1-615-760-7700 or visit
its website at www.ucar.com. For additional information on
Graftech, call 1-216-529-3777 or visit its website at
www.graftech.com.
About CGI
Founded in 1976, CGI is the fifth largest independent information
technology services firm in North America, based on its headcount
of 10,000 professionals. CGI's order backlog totals approximately
US$4.6 billion (CDN$7.0 billion) and its revenue stands at US$957
million (CDN$1.4 billion). CGI provides end-to-end IT services
and business solutions to 2,500 clients in the United States,
Canada and more than 20 countries around the world. CGI's shares
are listed on the NYSE (GIB), as well as on the TSE (GIB.A). They
are included in the Toronto Stock Exchange's TSE 300 index as
well as the S&P/TSE Canadian Information Technology index. Web
site: www.cgi.ca.
For UCAR Investors: This news release contains forward-looking
statements as defined in the Private Securities Litigation Reform
Act of 1995. These include statements about such matters as
informational technology systems design, implementation and
services, supply chain performance, return on invested capital,
shareholder value, capital allocation and cost reductions. We
have no duty to update such statements. Actual future events and
circumstances (including future performance, results and trends)
could differ materially from those set forth in these statements
due to various factors. These factors include the occurrence of
unanticipated events or circumstances relating to strategic plans
or programs or realignment, strategic alliance, supply chain,
technology development, restructuring, joint venture, operating,
capital, rationalization, integration or other projects, failure
to integrate UCAR's IT business assets as contemplated by the
contract, changes in the business, prospects, results of
operations or financial conditions of UCAR , changes in our need
for or availability of funds, changes in global or regional
economic or competitive conditions, technological developments,
and other risks and uncertainties, including those detailed in
UCAR's filings with the SEC. The statements contained in this
news release shall not be deemed to constitute an admission as to
any liability in connection with any claim or lawsuit. This news
release does not constitute an offer to sell or a solicitation of
an offer to buy any securities.
For CGI Investors: All statements in this press release that do
not directly and exclusively relate to historical facts
constitute "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. These
statements represent CGI Group Inc.'s intentions, plans,
expectations, and beliefs, and are subject to risks,
uncertainties, and other factors, of which many are beyond the
control of the Company. These factors could cause actual results
to differ materially from such forward-looking statements. These
factors include and are not restricted to the timing and size of
contracts, acquisitions and other corporate developments, the
ability to attract and retain qualified employees, market
competition in the rapidly-evolving information technology
industry, general economic and business conditions, and other
risks identified in Management's Discussion and Analysis (MD&A)
in CGI Group Inc.'s annual report or Form 40F filed with the US
Securities & Exchange Commission and the Company's Annual
Information Form filed with Canadian securities commissions. All
of the risk factors included in these filed documents are
included here by reference. CGI disclaims any intention or
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or
otherwise.
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For more information:
CGI UCAR
Ronald White Nancy Falls
Director, investor relations Treasurer
Tel: (514) 841-3230 Tel: (615) 760-7720
Eileen Murphy
Director, media relations
Tel: (514) 841-3430 |
