McCoy Corporation
TSX : MCB

McCoy Corporation

July 07, 2009 08:00 ET

McCoy Corporation Announces Consolidation of Trailer Manufacturing

EDMONTON, ALBERTA--(Marketwire - July 7, 2009) - McCoy Corporation ("McCoy" or the "Corporation") (TSX:MCB) today announced it will consolidate production of two trailer manufacturing plants into the Penticton, British Columbia facility. After a full strategic review of all options available, the Company will suspend production at its Edmonton, Alberta trailer plant until further notice. New orders and orders already in progress will not be affected by the suspension. The Penticton facility will begin to produce both the "Scona" and "Peerless" product brands early in the third quarter.

Jim Rakievich, President & CEO of McCoy stated "The shutdown of the Edmonton plant is an indication of how the global economic slowdown has effected the Trailer Manufacturing segment of McCoy. Demand for trailer products not only in western Canada, but across North America, has been reduced substantially. This decision will not impact the quality or service that our customers have come to expect from either the Scona or Peerless products. Our commitment to design specialized, custom trailers and chassis for both the infrastructure and global energy markets remains as strong as ever."

About McCoy Corporation

Established in 1914, McCoy Corporation provides advanced products and services for the global energy industry. McCoy is the leading worldwide manufacturer of tubular make-up power tongs, for both land and offshore rig applications, is the second largest global supplier of make/break machines used for assembling downhole tool strings and testing pipe connections, and also manufactures consumable replacement parts (dies and inserts) used in rig equipment. McCoy also builds mobile products including vacuum tanks, hydrovac systems, pick up and lay-down machines, and custom heavy duty trailers, crane dollies and oilfield chassis. The service portion of McCoy's business includes application of wear and corrosion resistant coatings for drilling tools; hydraulic cylinder services and refurbishment for rigs and heavy equipment; and maintenance, repairs and parts for heavy duty trucks and trailers.

Forward-Looking Information

This news release and the website referenced therein may contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends", and similar expressions are intended to identify forward-looking information or statements. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause McCoy's actual results and experience to differ materially from the anticipated results or expectations expressed. Readers are cautioned not to place undue reliance on forward-looking information that may be contained herein, which is given as of the date it is expressed in this news release or otherwise, and to not use future-oriented information or financial outlooks for anything other than their intended purposes. McCoy undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

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