Swiss engineering specialist ABB Ltd. said that it will restructure its engineering, procurement and construction or EPC business to boost competitiveness and focus more on higher-growth markets.
The company said that it has entered into a joint venture with SNC-Lavalin Group Inc. for the transfer of its electrical substations infrastructure project business. The deal, which will see SNC-Lavalin hold a controlling interest, is expected to close in 2018.
ABB also said that it is moving its oil and gas EPC business into a joint venture with Arkad Engineering & Construction Co. Ltd. with the transaction expected to be finalized on Dec. 31. The new joint venture company, Arkad-ABB S.p.A., which Arkad will control, will offer a full range of integrated EPC services for oil & gas plants.
The company also announced that it would wind down some of its turnkey full train retrofit operations in its Robotics and Motion division.
An ABB statement noted that the changes would slash $150 million from pretax operating profits in the fourth quarter, with an additional $75 million reduction to non-operational income.