Atco Ltd.'s residential structures unit (TSX:ACO.X) has won a contract to build housing at Shell Canada's Athabasca oilsands project north of Fort McMurray.
Atco Structures said the contract is for first phase of a project to manufacture and install housing for workers at Shell's (TSX:SHC) planned expansion of the Athabasca oilsands project.
Financial terms of the deal were not revealed.
The proposed housing development will be 10 km southeast of Shell's existing Muskeg River Mine.
The village will initially house 800 people and can be expanded to accommodate 2,500. It will feature a large main building, with a gymnasium, running track, workout area, lounge, lecture hall and dining area.
"We are looking to attract skilled people from across Canada to work on our project, so offering topnotch accommodation is essential," said Terry Letherby, project manager for Shell's oilsands expansion.
Atco said it will begin manufacturing the modules for the so-called Albian Village at its Calgary plant this summer.
Those parts will be shipped to the Athabasca site and installed by Atco by next year's first quarter.
Albian Sands Energy Inc. is the joint venture company that operates the Muskeg River Mine on behalf of the owners of the Athabasca oilsands project, Shell Canada, Chevron Canada (NYSE:CVX) and Western Oil Sands (TSX: WTO).
Atco Structures makes and sells workforce housing and other modular buildings.
Parent company Atco Group has operations in power generation, natural gas distribution and other sectors.
