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Apr 21, 2011 - Strongco Corporation announced today it plans to expand its
presence in Alberta with the construction of a new branch in Edmonton.
The Company has acquired 6.5 acres in the Parkland Industrial Park in
Acheson on the Northwest side of Edmonton. Construction of a 37,150
square foot facility is to start in June, with completion scheduled for
December 2011. The new facility will be designated a Volvo branch,
carrying the full line of products from Volvo Construction Equipment as
well as other leading brands.
"This new facility will substantially improve our presence in Alberta
and enable us to provide a higher level of service to our customers,"
said Bob Dryburgh, president and CEO of Strongco.
The current Edmonton branch, in the Sherwood Park area of Edmonton, is
shared between Strongco's Crane and Volvo/Multiline business units. When
the new branch is completed, the present facility will continue as a
dedicated crane operation.
"We have found that the shared branch in Edmonton constrains our
product support capacity and limits our ability to service our
customers' equipment, particularly when large crane boom rebuilds are
underway in the shop," added Mr. Dryburgh. "This is an opportune time to
build the new branch because the Alberta market is showing very
positive signs of recovery. The expanded capacity provided by our new
facility will eliminate current constraints and allow us to grow product
support revenues."
The total capital cost of the new branch is estimated at $9.5
million, most of which will be financed through a new mortgage facility
from Strongco's existing bank.
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