Valmont Secures USD $240.0 Million Multi-Year Order for Irrigation Products and Services
September 28 2020 - 7:58AM
Business Wire
World’s Largest Connected Farm Provides
Modern Irrigation Solutions to Africa
Valmont® Industries, Inc. (NYSE: VMI), a leading global provider
of engineered products and services for infrastructure development
and irrigation equipment and services for agriculture, today
announced it has entered into a supply agreement to provide
mechanized irrigation equipment, technology solutions, pump design,
and services for a large agricultural development project in
Africa. The agreement demonstrates the growing global demand for
more efficient and reliable food production, and national
investments in agriculture to feed growing populations and address
food security issues, further exacerbated by the COVID-19
crisis.
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“We are excited to be partnering with progressive thought
leaders who see the need and value for fresh water conservation and
modern agriculture,” said Stephen G. Kaniewski, Valmont President
and Chief Executive Officer. “Projects like these are highly
transformative to local economies, bringing much-needed
infrastructure and modern agricultural systems that enhance the
food supply chain.”
Len Adams, Group President, Valmont Irrigation, added, “This
multi-year engagement with a long-standing customer came about
after many years of collaboration and their confidence in the
strong technology and project execution capabilities of our Valley®
Irrigation team and the local dealer. Our global manufacturing
footprint and flexible supply chain allows us to strategically
serve the African market quickly and effectively. As the market
leader, we are well-positioned to execute and deliver large,
complex projects of this scale.”
The approximately 200,000-hectare (500,000-acre) project will
provide irrigation for highly efficient crop production,
significantly minimizing the use of previously-marginal
agricultural land and enabling double-cropping to produce
world-class yields, while conserving approximately half the water
currently used with traditional irrigation methods. Utilizing
Valley Irrigation’s latest, most innovative technology solutions to
maximize yields and minimize inputs, this project will become the
largest connected irrigation project on the planet upon completion,
further confirming Valmont’s technology leadership on the irrigated
farm. Valmont introduced the center pivot to the U.S. market and
this unique solution has transformed irrigated farming. Since that
time, other large agricultural markets such as Brazil, Australia,
and New Zealand have also implemented these technologies to become
food baskets to the world.
Project deliveries are scheduled to begin in fourth quarter 2020
and expected to be completed at the end of 2022. Payment terms
include a combination of a cash down payment and confirmed letter
of credit. Importantly, the project is not expected to impact
Valmont’s ability to serve existing global market demand, nor will
further capacity additions be required.
Kaniewski continued, “This multi-year engagement is a testament
to our ability to secure large-scale projects that address the
critical need to increase food production to serve a growing
population. We speak often about the strength of our international
project pipeline, and we are very excited to be awarded this
opportunity, which provides meaningful momentum heading into 2021.
Projects like these advance our market growth strategy to provide
technologically-advanced irrigation solutions to customers who are
taking bold and aggressive steps to minimize the use of natural
resources while maximizing food production. Enhancing food security
and strengthening local economies remains a priority for many
nations and customers around the world.”
“As countries look to diversify from traditional revenue sources
to feed their growing populations, our products and technologies
will become even more critical for improving crop production and
addressing the continued scarcity of fresh water,” added Kaniewski.
“I want to congratulate our entire team on this opportunity.”
The Company plans to provide further details during its third
quarter 2020 earnings call on October 22, 2020.
About Valmont Industries, Inc.
Valmont® is a global leader, designing and manufacturing
engineered products that support global infrastructure development
and agricultural productivity. Its products for infrastructure
serve highway, transportation, wireless communication, electric
transmission, and industrial construction and energy markets. Its
irrigation equipment and services for large-scale agriculture
improves farm productivity while conserving fresh water resources.
In addition, Valmont provides coatings services that protect
against corrosion and improve the service lives of steel and other
metal products. For more information, visit valmont.com.
About Valley Irrigation
Valley® Irrigation founded the center pivot irrigation industry
in 1954, and our brand is the worldwide leader in sales, service,
quality and innovation. With historical sales of more than 250,000
center pivots and linears, Valmont-built equipment annually
irrigates approximately 25 million acres (10 million hectares)
around the world. We remain dedicated to providing innovative,
precision irrigation solutions now and into the future. For more
information, please visit valleyirrigation.com.
Concerning Forward-Looking Statements
This release contains forward-looking statements, within the
meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are based on assumptions that
management has made in light of experience in the industries in
which Valmont operates, as well as management’s perceptions of
historical trends, current conditions, expected future developments
and other factors believed to be appropriate under the
circumstances. As you read and consider this release, you should
understand that these statements are not guarantees of performance
or results. They involve risks, uncertainties (some of which are
beyond Valmont’s control) and assumptions. Although management
believes that these forward-looking statements are based on
reasonable assumptions, you should be aware that many factors could
affect Valmont’s actual financial results and cause them to differ
materially from those anticipated in the forward-looking
statements. These factors include among other things, the
continuing and developing effects of COVID-19 including the effects
of the outbreak on the general economy and the specific economic
effects on the Company’s business and that of its customers and
suppliers, risk factors described from time to time in Valmont’s
reports to the Securities and Exchange Commission, as well as
future economic and market circumstances, industry conditions,
company performance and financial results, operating efficiencies,
availability and price of raw material, availability and market
acceptance of new products, product pricing, domestic and
international competitive environments, and actions and policy
changes of domestic and foreign governments. The Company cautions
that any forward-looking statement included in this press release
is made as of the date of this press release and the Company does
not undertake to update any forward-looking statement.
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Renee Campbell +1.402.963.1057
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