Tornado’s CustomVac Division Enters Private Label Manufacturing Agreement With Ascend Hydrovacs

Core Insights - Tornado Infrastructure Equipment Ltd. has entered into a private label manufacturing agreement with Ascend Hydrovacs Inc. to produce hydrovac units, which is expected to generate significant revenue for the company [1][3]. Group 1: Supply Agreement Details - CustomVac will manufacture 13-yard tipping tank hydrovac units exclusively for Ascend, tailored to meet specific operational requirements [2]. - The Supply Agreement includes a commitment for the delivery of proprietary hydrovac trucks over the next four fiscal years starting in 2026, estimated to generate minimum gross revenue of CAD$88.2 million [3][13]. - Ascend will pay Tornado an intellectual property fee of up to CAD$1.8 million per unit for rights to the co-developed hydrovac product design [3][13]. Group 2: Operational Developments - The partnership enhances CustomVac's position as a leading original equipment manufacturer in private label hydrovac manufacturing [4][13]. - Production will take place at CustomVac's advanced facility in Nisku, Alberta, with initial deliveries expected later this year [4][13]. - Tornado's new manufacturing facility in Red Deer is nearing completion, which is anticipated to improve operational efficiencies and increase capacity starting in Q3 2025 [4][13]. Group 3: Company Background - CustomVac specializes in manufacturing and servicing mobile vacuum equipment for various sectors including oil and gas, utilities, and environmental services [5][6]. - Tornado has sold over 1,800 hydrovacs since 2008 and is recognized as a leader in the vacuum truck industry [7].