Massive Caterpillar deal with Suncor in the oil sands

Finning (Canada) has secured a major mining equipment and support services deal with Suncor Energy for a total value of approximately C$360 million. Suncor’s equipment purchase includes 22 Caterpillar 797B mining trucks, 19 D11T and 5 D8T track-type tractors (dozers). In addition, Suncor has engaged Finning to support this equipment through various customer support service agreements, including parts and labour, ranging in term to approximately 10 years.
The equipment is scheduled to be delivered over the course of 2008 and 2009. The new 797 trucks will be used to meet increased production levels from existing operations as well as mine expansions. With the delivery of these large mining trucks, Suncor’s fleet of Caterpillar mining trucks will grow to 67 units, of which 51 will be 797s and 16 are 793 model trucks.

“Growth in mining activity in the oil sands continues to be very strong, and Finning’s position as the major supplier of large mobile mining equipment and as the key service partner to the oil sands producers continues to expand,” said Mike Waites, incoming President and CEO of Finning International. “The Caterpillar equipment fleets in this region have grown substantially in the past few years. There are currently 120 of the 797 haul-trucks operating in the Alberta oil sands, and in 2008 we are scheduled to deliver over 65 additional 797s. The significant expansion of the 797 fleet in 2008 and 2009 will have a very positive impact on our customer support services revenues in two to three years when these trucks, the largest mining trucks in the world, begin their major component replacement programs.”

“Suncor is our valued customer and one of the original producers in the Alberta oil sands. We are proud to be able to build on our long-standing partnership as they continue to expand their oil production,” said Ian Reid, President of Finning (Canada). “Finning’s growing service capabilities in the region, including over 700 Fort McMurray based employees, allow us to continue meeting Suncor’s and our other customers’ increasing demands for equipment, parts, maintenance and rebuild.”

Finning International is the world’s largest Caterpillar equipment dealer. The Company sells, rents and provides customer support services for Caterpillar equipment and engines in Western Canada, the UK and parts of South America.