Insituform Technologies, LLC – a unit of Aegion Corporation (AEGN - Analyst Report) – has secured a wastewater pipelines rehabilitation contract from the City of Montreal, Canada worth $10.6 million. As per the contract, Insituform will provide rehabilitation work with Cured-in-Place Pipe (CIPP) technology throughout the city.
Insituform, a global leader in the development and installation of proprietary technologies and services for rehabilitating sewer, water and other underground piping systems, will use its CIPP technology to install over 9 miles of wastewater pipelines in the city. Installations will be in downtown Montreal as well as boroughs. It will build egg shaped brick pipeline sections which have a diameter of 12 inch to 42 inch.
The agreement also includes a range of contract services. Insituform will utilize its proprietary robotic technology and manhole replacements to reinstate more than 2,100 service connections. The project is expected to begin in Jul 2013 and will complete after 12 months.
Aegion, which belongs to the building and construction industry along with USG Corporation (USG - Snapshot Report), Armstrong World Industries, Inc. (AWI - Analyst Report) and CaesarStone Sdot-Yam Ltd. (CSTE - Snapshot Report), has recently won a contract from the City of Baltimore, Md. worth $16 million, to restore and reconstruct the wastewater pipeline with its CIPP technology. Aegion has also completed the Brinderson, L.P. acquisition for $150 million, which will generate sustainable growth, cash flows and improve return on invested capital.
Aegion expects to balance the slow start of 2013 with its strong backlog and robust bid table supporting opportunities for securing additional projects. Moreover, the Brinderson acquisition is part of its strategic efforts to enhance its presence in the U.S. energy market.
Chesterfield, MO-based Aegion is a diversified building and construction company which provides infrastructure protection, proprietary technologies and services. It also offers services related to the rehabilitation and improvement of sewer, water, energy and mining piping systems.
Aegion currently carries a Zacks Rank #3 (Hold).