MONTREAL, Oct. 11, 2019 /CNW Telbec/ - SNC-Lavalin (TSX:
SNC) today announced it has reached a full and final settlement
with Codelco, following Codelco's decision to terminate its Mining
& Metallurgy contract, as announced on March 25, 2019. This settlement, which has no
material impact on previously reported results, will eliminate the
potential for any and all future risk stemming from the disputes
related to the contract termination.
The settlement, which includes the immediate termination of all
arbitration procedures, follows a detailed risk assessment in line
with the Company's new strategic focus to exit Lump-Sum
Turnkey (LSTK) contracts and close out prior issues. The move away
from LSTK contracts will mitigate risks and exposure to further
negative impacts.
"Settling outstanding claims in an effective and cost-efficient
manner is a key priority for SNC-Lavalin and we remain focused on
completing the remaining backlog of SNCL Projects in a timely
fashion and to the highest level of operational execution," said
Ian L. Edwards, Interim President
and Chief Executive Officer, SNC-Lavalin. "This will allow us to
execute on our new strategy of successfully exiting LSTK
contracting and better leverage the high-performing and growth
areas of the business as we transition towards SNCL Engineering
Services."
About SNC-Lavalin
Founded in 1911,
SNC-Lavalin is a global fully integrated professional services and
project management company and a major player in the ownership of
infrastructure. From offices around the world, SNC-Lavalin's
employees think beyond engineering. Our teams provide comprehensive
end-to-end project solutions – including capital investment,
consulting, design, engineering, construction management,
sustaining capital and operations and maintenance – to clients
across the EDPM (engineering, design and project management),
Infrastructure, Nuclear, and Resources businesses.
www.snclavalin.com
SOURCE SNC-Lavalin