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NEWS RELEASE TRANSMITTED BY Marketwire
FOR:
Finning International Inc.
TSX SYMBOL:
FTT
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Finning Announces C$33 Million Equipment Sale to Western Canadian Coal Corporation; Prince George Branch Designated as Regional Service Support Centre
NOV 29, 2005 - 13:09 ET
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 29, 2005) - Finning International Inc. ("Finning") (TSX:FTT) announced that its Canadian division has secured the sale of 18 pieces of Caterpillar equipment to Western Canadian Coal Corp. and its intended contract partners (Ledcor CMI Ltd. and Pelly Construction) for the development of the Wolverine Mine near Tumbler Ridge in northeast British Columbia.
Also, Finning is expanding its service support capabilities throughout the province due in part to the resurgence of the B.C. mining industry. Finning's Prince George Branch has been designated as a regional mining service centre, serving customers throughout all of northern B.C. Approximately 30 new jobs will be created through the expansion of mining related customer support services.
"Continued strength in the western Canadian coal industry resulting from the global demand for steel and power has created excellent opportunities for Finning to increase the Caterpillar fleet in this territory," said Doug Whitehead, president and CEO of Finning. "As the CAT fleet grows, in western Canada, in South America and in the UK, the long term demand for parts and service grows with it. This provides a growing source of ongoing earnings for many years to come."
"We are pleased to have been selected as the equipment supplier to Western Canadian Coal Corp and are committed to maintaining an excellent relationship and providing unrivalled customer service," said Ian Reid, president of Finning (Canada).
British Columbia Minister of State for Mining Bill Bennett was on hand to tour Finning's operations, "I want to take this opportunity to commend Finning on its strong support of the mining industry. The equipment procurement, the expansion of their service sector facilities and the opportunity for increased employment for British Columbians is another great example of how mining supports communities throughout British Columbia. Job creation and economic growth in the mining sector are an integral part of our BC Mining Plan and this government has been very successful in encouraging, promoting and supporting the expansion of the mining industry in BC."
The equipment package, valued at approximately C$32.6 million, consists of five Cat 789C haul trucks (190 ton capacity), five Cat 785C haul trucks (150 ton capacity), four Cat D10T tractors, a Cat 16H motor grader, a Cat 992 wheel loader, a Cat 834H wheel dozer and a Cat 385 excavator. The equipment is being delivered during the latter part of 2005 and the first quarter of 2006 and is being used for pre-production stripping, as well as mining operations.
Finning (Canada) presently employs more than 1100 people at 23 operations throughout the province. In the last two years, the Company has added more than 100 employees to its B.C. mining support team in centres such as the Elk Valley, the Kamloops area and across northern B.C. Based on proposed new mining development in the province and anticipated new business, the Company projects that its workforce could increase by at least 10% over the next number of years.
Western Canadian Coal Corporation's Wolverine Mine is planned to be an open pit metallurgical coal mine with an annual production capacity of 3.0 million clean tonnes. The mine is scheduled to begin production in July 2006 at an initial throughput rate of 2.4 million tonnes per annum.
Finning International Inc. is one of the world's largest Caterpillar equipment dealers. The Company sells, rents, finances and provides customer support services for Caterpillar equipment and engines in Western Canada, the U.K., and South America (Argentina, Bolivia, Chile and Uruguay). Finning also owns Hewden, the largest equipment rental business in Europe. Headquartered in Vancouver, British Columbia, Canada, Finning International Inc. is a widely held, publicly traded corporation, listed on the Toronto Stock Exchange (symbol FTT). For additional information please visit our website at www.finning.com.
This release may contain forward-looking statements and information, which reflect the current view of Finning International Inc. with respect to future events and financial performance. Any such forward-looking statements are subject to risks and uncertainties and Finning's actual results of operations could differ materially from historical results or current expectations. Finning assumes no obligation to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein do not materialize.
Refer to Finning's annual report, management information circular, annual information form and other filings with the Ontario Securities Commission and Toronto Stock Exchange for further information on risks and uncertainties that could cause actual results to differ materially from forward-looking statements contained in this report.
FOR FURTHER INFORMATION PLEASE CONTACT:
Finning International Inc.
Tom Merinsky
Vice President, Investor Relations
(604) 331-4950
(604) 331-4899 (FAX)
investor_relations@finning.ca
www.finning.com
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