TORONTO, May 19, May 19, 2022 (GLOBE NEWSWIRE via COMTEX) --
TORONTO, May 19, 2022 (GLOBE NEWSWIRE) -- Shawcor Ltd. ("Shawcor" or the "Company")
announced today that it has secured an early exit from its leased facility, which formerly housed the Company's FlexFlow operations, in Calgary's Oxford Airport Business Park. This exit will be completed during the third quarter of 2022 and will result in net savings of approximately $15 million over the course of the next seven years. The Company's Calgary-based activities will be consolidated into its remaining 54
Avenue location. The Company will incur one-time restructuring costs of approximately $2 million to execute this transaction, which will be reflected in the second quarter financial results. CBRE Group, Inc. served as the Company's real estate advisor in this transaction.
"This important transaction represents the next step in our strategic drive for greater operational efficiency, lower fixed costs and reduced energy consumption," said Mike Reeves, Shawcor's President and CEO. "This move allows us to focus our resources on core product lines and will provide meaningful cost savings for several years to come. In addition, it serves to further reduce our Scope 1 and 2 greenhouse gas emissions as we progress toward our 2030 ambitions; and it is evidence of our commitment to practical ESG initiatives that reduce our impact on the environment and contribute positively to the world."
Shawcor Ltd. is a growth-oriented, global material sciences company serving the Infrastructure, Energy, and Transportation markets. The Company operates through a network of fixed and mobile manufacturing and service facilities. Its three business segments, Composite Systems, Automotive & Industrial and Pipeline & Pipe Services enable responsible renewal and enhancement of critical infrastructure while lowering risk and environmental impact.
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Forward Looking Information
This news release contains forward-looking information within the meaning of applicable securities laws. Words such as "may", "will", "should", "anticipate", "plan", "expect", "believe", "predict", "estimate" or similar terminology are used to identify forward-looking information. This forward-looking information is based on assumptions, estimates and analysis made in the light of the Company's experience and its perception of trends, current conditions and expected developments, as well as other factors that are believed by the Company to be reasonable and relevant in the circumstances. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from those predicted, expressed or implied by the forward-looking information. The forward-looking information is provided as of the date of this news release and the Company does not assume any obligation to update or revise the forward-looking information to reflect new events or circumstances, except as required by law.
Source: Shawcor Ltd.
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