Tornado Global Hydrovacs and Ditch Witch begin hydrovac truck strategic supply agreement
Tornado Global Hydrovacs Ltd. has entered into a product supply and development agreement for the co-development and supply of customized hydrovac trucks with Ditch Witch. The supply contract contains a commitment for the delivery of a number of proprietary hydrovac trucks to Ditch Witch which are estimated to generate a minimum of USD $43,850,000 gross revenue during the four-year term.
"This strategic alliance brings together two strong brands with a collective purpose to better serve customers, and meet future demands including the outlook on infrastructure spending and the effect this spending will have on hydrovac demand globally," says Brett Newton, CEO of Tornado. "Tornado is thrilled to have co-designed and started to supply an innovative and proprietary hydrovac truck that will be distributed through the Ditch Witch construction equipment network. Combined with our other sales of hydrovac trucks, we expect this relationship to further optimize the utilization of our manufacturing capacity much more rapidly."
The supply contract requires Tornado to co-develop a customized, Ditch Witch branded hydrovac truck, and supply the hydrovac trucks to Ditch Witch, starting in 2022 and ending in 2025, subject to certain customary commercial terms and conditions. The sale and delivery of the first customized hydrovac truck to Ditch Witch is expected to be completed in Q3 of 2022.