DBCO gets part of huge 162 million contract with ECGOF:
TORONTO--(BUSINESS WIRE)--June 9, 1998--Michael E. McGinnis, Chairman, President & CEO of AMERICAN ECO CORPORATION (NASDAQ:ECGOF) (TSE:ECX.) announced today that American Eco has received the largest fabrication order in its history- a US$162.0 million (Cdn $234.0 million) contract for its 51 percent joint venture with the Davie Industries subsidiary of Dominion Bridge. The contract is for fabrication and construction of two semi-submersible oil rigs.
Fabrication of the two Amethyst oilrig platforms will begin in July at the Davie Shipyard, Quebec City and at American Eco's subsidiary MM Industra of Halifax, Nova Scotia. London Guarantee, the second largest bonding company in Canada, has provided US$64.5 million (Cdn $90.0 million) in performance bonds for the contracts. The two Amethysts are being built for Petrodrill Offshore Inc., a Bohemian Corporation owned jointly by Maritima Petroleo E Engineria Ltda. of Brazil and Pride International, Inc. of the United States are to be completed by the end of 1999.
Commenting on the contract, Mr. McGinnis said: "This is a perfect joint venture effort, in which both American Eco and Dominion Bridge realize efficient utilization of their Canadian based facilities. American Eco's financial strength is allowing it to leverage its expertise by participation in more of these types of joint projects."
American Eco is a leading North American provider of single-source industrial support and specialty fabrication services in the energy, pulp and paper, and power generating industries.
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