Focus & Grow
SNC-Lavalin has been reorganized into and operates as two distinct businesses that are reported on and managed separately.
SNCL Engineering Services
SNC-Lavalin intends to grow where it is strongest and has a differentiated market position, which is the focus of its SNCL Engineering Services business line. The SNCL Engineering Services business line consists of the Company’s EDPM and Nuclear segments, Linxon, the services portions of the Company’s previous Infrastructure segment (namely O&M, District Cooling and Clean Power services), and Capital. The former Infrastructure segment is shifting its focus toward becoming a program integrator with a greater emphasis on Program and Project Management and Construction Management services.
SNC-Lavalin’s objectives for the Engineering Services business are:
- Become recognized as a market leader, or expand its market leadership, in the following areas:
- Advisory, design and project management services for infrastructure projects globally.
- Nuclear services, including life extension, decontamination and decommissioning (“D&D”), and remediation.
- Project Management / Construction Management / Operations & Management / Project integration in transportation, especially in rail and transit.
- Capital – Ownership and management of infrastructure assets.
- Clean power – Global electrical AC substation projects and renewables engineering services.
- Linxon (supplier of power substations).
- Establish more predictable and strong financial performance and restore investor confidence by delivering:
- Industry leading EBITDA margins.
- Strong cash flow results to build a sustainable future.
SNC-Lavalin will continue to be a strong player in the advisory, engineering and design space with EDPM, and expects to maintain its global market-leading position in rail and transit. Rail and transit remains a key focus area for the Company’s infrastructure business, where market growth is expected to be above GDP growth levels in the Company’s core markets, creating ongoing opportunities for SNC-Lavalin’s revised offering.
The Company also has a well-established position in nuclear plant life extension, including a leading position in CANDU-related services and products, and a demonstrated ability to successfully act as a Project Manager/Construction Manager and to provide Operation & Maintenance for complex transportation projects and social infrastructure. Sustained concerns of climate change are also driving the need for clean energy, and thus a need for life extension in nuclear power plants. Directly and through Comprehensive Decommissioning International, LLC, its joint venture company with Holtec International, the Company is addressing a growing need for nuclear decommissioning along with sustained need for nuclear clean-up services.
The SNCL Projects business consists of the Company’s current Resources segment and the EPC portion of its former Infrastructure segment. The focus of this business is very straightforward:
- Continue ongoing operations of the business;
- Complete the Company’s obligations to our customers;
- Work to mitigate risks of future losses;
- Aggressively pursue resolution of the Company’s claims collection and recoveries; and
- Assess the Company’s future options for the services part of Oil & Gas and Mining & Metallurgy. (see update below on resources services)
SNC-Lavalin believes that accelerating the pace of risk reduction and organizational effectiveness activities will result in the Company delivering stronger operational and financial performance on a more consistent basis.
Further, SNC-Lavalin will continue to right-size the Company and concentrate on streamlining its overhead costs. SNC Lavalin is also reducing its geographic footprint to reduce risk and complexity by focusing on its core growth regions: Canada, the U.S., and the U.K., along with regional markets such as the Middle East and Asia Pacific and exiting unprofitable operations in certain countries.
Update July 31, 2020: SNC-Lavalin announced plans to transform and restructure its Resources Services business. Please see the detailed press release