Tornado’s CustomVac and Ascend: A Strategic Partnership
Tornado Infrastructure Equipment Ltd. Partners with Ascend Hydrovacs
CALGARY, Alberta - Tornado Infrastructure Equipment Ltd. (TSX-V: TGH; OTCQX: TGHLF) has announced a significant development through its subsidiary, Custom Vacuum Services Ltd. (CustomVac), marking an exclusive private label manufacturing agreement with Ascend Hydrovacs Inc. (Ascend). This collaboration is set to elevate the standards in the Canadian hydrovac market.
CustomVac's Innovative Hydrovac Units
As part of this memorable partnership, CustomVac will exclusively manufacture custom-designed, 13-yard tipping tank hydrovac units for Ascend. These units are crafted to meet Ascend's unique operational needs, ensuring the utmost efficiency and effectiveness in their services.
Details of the Agreement
The Supply Agreement outlines that CustomVac will provide a series of advanced proprietary hydrovac trucks over the next four years, expected to generate a minimum of CAD$88.2 million in revenue for Tornado. Additionally, Ascend will compensate Tornado with intellectual property fees, potentially reaching up to CAD$1.8 million per unit for the rights to these specially designed trucks.
Leadership Insights
Brett Newton, the President and CEO of Tornado, expressed his excitement about this collaboration: "Working with Ascend's team again is thrilling. Their extensive experience has significantly contributed to the development of this innovative product. This partnership showcases our joint commitment to delivering well-crafted, tested solutions. Moreover, Tornado is expanding its capabilities as we approach the completion of our new manufacturing facility at the Red Deer campus, slated to increase our production efficiency and capacity beginning in Q3 2025."
An Industry Leader in Hydrovac Solutions
This alliance solidifies CustomVac's status as a premier original equipment manufacturer in private label hydrovac practices. Production will be executed at CustomVac’s state-of-the-art facility in Nisku, Alberta, with initial deliveries anticipated later this year. The facility’s advanced capabilities ensure that both companies can meet the demand with precision and quality.
About Custom Vacuum Services Ltd.
CustomVac specializes in manufacturing and servicing mobile, coded vacuum equipment, both truck-mounted and semi-trailer mounted, for various sectors such as oil and gas, utilities, excavation, environmental, and safety industries across Canada. Since its establishment in 2000, CustomVac has seen remarkable growth, increasing its operational capacity substantially to accommodate the rising demand.
About Tornado Infrastructure Equipment Ltd.
Tornado is a trailblazer in the vacuum truck industry, having sold over 1,800 hydrovacs since 2008. The company develops and manufactures hydrovac trucks and offers robust truck maintenance services throughout central Alberta. Their hydrovac trucks harness high-pressure water and vacuum technology to safely excavate and expose critical infrastructure for necessary repairs, making it a preferred method in urban settings.
Contact Information
Brett Newton
President and Chief Executive Officer
Phone: (587) 802-5070
Email: bnewton@tghl.ca
Derek Li
Vice President and Chief Financial Officer
Phone: (403) 204-6350
Email: dli@tghl.ca
Frequently Asked Questions
What is the nature of the agreement between Tornado and Ascend?
The agreement involves Tornado's CustomVac manufacturing hydrovac units exclusively for Ascend, tailored to their specific needs.
How much revenue is Tornado expected to generate from this agreement?
The Supply Agreement is projected to yield a minimum gross revenue of CAD$88.2 million over the four-year term.
What fees will Ascend pay Tornado for the development of these units?
Ascend will pay an intellectual property fee of up to CAD$1.8 million CAD per unit for the rights to the product design.
Where will the hydrovac units be manufactured?
Production will take place at CustomVac’s modern facility located in Nisku, Alberta.
What are Tornado's future plans regarding production capacity?
Tornado plans to enhance its operational efficiencies and increase manufacturing capacity as it transitions into a newly completed facility at its Red Deer campus starting in Q3 2025.
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