Shawcor secures early exit from its leased facility
by CM Staff
This exit will be completed during the third quarter of 2022 and will result in net savings of approximately $15 million over the course of the next seven years.
TORONTO — Shawcor Ltd. announced on May 20 that it has secured an early exit from its leased facility, which formerly housed the Company’s FlexFlow operations, in Calgary’s Oxford Airport Business Park. This exit will be completed during the third quarter of 2022 and will result in net savings of approximately $15 million over the course of the next seven years. The Company’s Calgary-based activities will be consolidated into its remaining 54th Avenue location. The Company will incur one-time restructuring costs of approximately $2 million to execute this transaction, which will be reflected in the second quarter financial results. CBRE Group, Inc. served as the Company’s real estate advisor in this transaction.
“This important transaction represents the next step in our strategic drive for greater operational efficiency, lower fixed costs and reduced energy consumption,” said Mike Reeves, Shawcor’s President and CEO. “This move allows us to focus our resources on core product lines and will provide meaningful cost savings for several years to come. In addition, it serves to further reduce our Scope 1 and 2 greenhouse gas emissions as we progress toward our 2030 ambitions; and it is evidence of our commitment to practical ESG initiatives that reduce our impact on the environment and contribute positively to the world.”