SNC-Lavalin (TSX:SNC) is pleased to announce that it has signed an agreement to form a joint venture with ABB for the delivery of substation projects globally at 66 kV AC and above.
Under the agreement, SNC-Lavalin will be the majority shareholder. As part of its Clean Power growth strategy, this joint venture will create a platform to accelerate growth by combining SNC-Lavalin’s strengths and expertise in executing complex projects, including design, engineering, and project management, with ABB’s leading electrical substation technology and world-class products.
This builds on SNC-Lavalin’s new client-facing structure announced in November, creating a Clean Power sector that will incorporate activities in hydro, transmission & distribution, renewables and energy storage.
“This joint venture is a strategic step to build our capabilities in the full lifecycle of renewables, and positions us well in all of our markets, particularly utilities, renewables and transportation,” said Marie-Claude Dumas, President, Clean Power. “The innovative business model will deliver a key differentiated offering across all SNC-Lavalin’s sectors, and will create value for our customers by leveraging our combined world-renowned expertise, end-to-end service offering and geographic presence.”
The joint venture represents great development opportunities for employees, and is expected to have a backlog in excess of $700 million.
The joint venture is subject to closing conditions and is expected to close in the second quarter of 2018.