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SNC-Lavalin, ABB form JV to tap 'vast opportunities' in power sector

Montreal-based SNC-Lavalin Group Inc. and Zurich-based ABB Ltd. agreed to form a joint venture to deliver electrical substation projects globally at 66 kV and above, the companies announced Dec. 20.

The joint venture will leverage SNC-Lavalin project management expertise and ABB's substation technology to "tap the vast opportunities of power infrastructure investments," said Claudio Facchin, president of ABB Power Grids division.

SNC-Lavalin will have a majority and controlling stake in the new entity, which is expected to have a backlog of more than $700 million. The joint venture is expected to close in the second quarter of 2018.

The joint venture builds on SNC-Lavalin's new "client-facing structure" announced in November following the completion of the Atkins integration plan. The structure featured the creation of a clean power sector that will incorporate activities in hydro, transmission and 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 of 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."