Tornado Global Hydrovacs Ltd. has entered into a product supply and development agreement for the co-development and supply of customized hydrovac trucks with Ditch Witch, a division of The Toro Company (the purchaser). The supply contract contains a commitment for the delivery of a number of innovative, proprietary hydrovac trucks to the purchaser that are estimated to generate minimum gross revenue for Tornado in the amount of $43.85-million (U.S.) during the four-year term.
“This strategic alliance brings together two strong brands with a collective purpose to better serve customers and meet future demands, including the outlook on infrastructure spending and the effect this spending will have on hydrovac demand globally,” stated Brett Newton, chief executive officer of Tornado. “Tornado is thrilled to have co-designed and started to supply an innovative and proprietary hydrovac truck that will be distributed through the Ditch Witch construction equipment network. Combined with our other sales of hydrovac trucks, we expect this relationship to further optimize the utilization of our manufacturing capacity much more rapidly.”
The supply contract requires Tornado to co-develop a customized exclusively Ditch Witch branded hydrovac truck, (including the necessary intellectual property for the design and operation of the hydrovac truck) and then supply the customized hydrovac trucks to the purchaser commencing in fiscal year 2022 and ending in fiscal year 2025, subject to certain customary commercial terms and conditions. The sale and delivery of the first customized hydrovac truck to the purchaser are expected to be completed in Q3 2022.
About Tornado Global Hydrovacs Ltd.
Tornado is a pioneer and leader in the vacuum truck industry and has been a choice of oil field and utility professionals with over 1,000 hydrovacs sold since 2005. The company designs and manufactures hydrovac trucks as well as provides heavy-duty truck maintenance operations in central Alberta. It sells hydrovac trucks to excavation service providers in the infrastructure and industrial construction and oil and gas markets. Hydrovac trucks use high-pressure water and vacuum to safely penetrate and cut soil to expose critical infrastructure for repair and installation without damage. Hydrovac excavation methods are quickly becoming a standard in North America to safely excavate in urban areas and around critical infrastructure, greatly reducing infrastructure damage and related fatalities.
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