14 May Shimmick Announces Intention to Appeal Recent Decision Related to Chickamauga Lock Project
Shimmick Corporation, a national leader in complex infrastructure solutions, today announced the Company will commence an appeal of a recent action from the U.S. Army Corps of Engineers (USACE) regarding its involvement in the Chickamauga Lock replacement project in Chattanooga, Tennessee.
Shimmick was engaged in 2017 to construct the 600’ lock chamber of the Chickamauga Lock Replacement Project, including drilled shafts, mass concrete and installation of miter gate and associated systems. It has collaborated with the USACE, numerous local sub-contractors – many of which employ unionized workforces – and other partners of the project over recent years to complete the Project safely and in accordance with the contract requirements, working over 5 million manhours, reaching a workforce of over 425 workers on site.
“We are grateful for our hardworking employees, subcontractors and other local partners who have helped progress this important project despite the unique challenges faced during our work on it,” said Ural Yal, Shimmick’s Chief Executive Officer. “Shimmick has a long history of serving as a strong partner to the USACE and takes pride in our work together for nearly a century.”
The USACE issued a notice of termination of Shimmick’s right to proceed under the 2017 contract on May 8, 2026. Shimmick disputes the USACE’s termination. Under the terms of the contract, the contractor has a right to appeal certain decisions of the USACE’s contracting officer within 90 days of notice. Shimmick plans on exercising that right to challenge the termination and obtain compensation for the work-related costs the Company is entitled to.
“While we dispute the termination, we respect and appreciate the USACE’s commitment to completing this project and believe it is critically important for there to be a true and accurate understanding of the challenges associated with this project to date, including the impact of certain change order requests on our work. We look forward to sharing this information through the appropriate channels.” Yal said.
Change orders are common in large, complex construction projects such as the Chickamauga Lock replacement. Shimmick has a long history of working for USACE and continues to support the USACE on two other active projects in Texas and California, respectively.
About Shimmick
Shimmick Corporation (NASDAQ: SHIM) is an industry leader in delivering turnkey infrastructure solutions that strengthen critical markets across water, energy, climate resilience, and sustainable transportation. We integrate technical excellence with collaborative project delivery methods to provide innovative, technology-driven infrastructure solutions that accelerate economic growth and empower communities nationwide. With a track record spanning over a century, Shimmick, headquartered in California, unites a deep engineering heritage with an entrepreneurial spirit to tackle today’s most complex infrastructure challenges. For more information, visit www.shimmick.com.
Media Contact: Lee Ann Ballew LeeAnn.Ballew@shimmick.com
Forward-Looking Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act“). These forward-looking statements are often characterized by the use of words such as “may,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other similar words. Forward-looking statements are only predictions based on our current expectations and our projections about future events, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances, including, but not limited to, unanticipated events, after the date on which such statement is made, unless otherwise required by law. Forward-looking statements contained in this release include, but are not limited to, statements about: our intent to appeal the USACE’s recent notice of termination with related to the Chickamauga Lock project, our ability to obtain any compensation in connection therewith, and our ability to continue to cooperate with the USACE on other active projects. These statements involve risks and uncertainties, and actual results may differ materially from any future results expressed or implied by the forward-looking statements. Forward-looking statements are only predictions based on our current expectations and our projections about future events, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances, including, but not limited to, unanticipated events, after the date on which such statement is made, unless otherwise required by law.
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