MONTREAL, March 28, 2019 /CNW Telbec/ - SNC-Lavalin (TSX: SNC) announces a new operating structure in an effort to simplify and continue to de-risk the business.
"This new realignment of our business was prompted by our ongoing efforts around the efficiency of our operations and on how we should best simplify our organization to achieve consistent and high-performing delivery," said Neil Bruce, President and CEO, SNC-Lavalin. "This new organizational structure will position us for further improving project delivery, driving sustainable growth and more consistent cash flow generation."
"The intention is to outline how we believe our operating sectors will best serve our clients presently, and provide alignment and focus as a truly global, world class, engineering company, and to share best practice on project oversight," added Ian Edwards, Chief Operating Officer, SNC-Lavalin. "Many of our services, functions and teams are already integrated across the company, and now is the opportune time to further simplify our market-facing structure."
Underpinning the Company's four operational sectors is the newly introduced Project Oversight function. Project Oversight is an operational function reporting directly to the President and CEO, and is responsible for ensuring delivery and execution across all our operations. The objective is to drive consistency and assess risk for the company in a way that enhances our ability to foresee and fix project-related issues in a timely fashion.
The new structure is as follows and effective January 1, 2019, the Company's financials will reflect these new reportable segments:
- Engineering, Design & Project Management (EDPM); to further leverage EDPM's mature and global platform, the Canadian Infrastructure Engineering business unit will become part of the wider EDPM global business. This will bring our global services closer together, build collaboration across teams, and further strengthen our position as #3 in the world for design and engineering. Philip Hoare will succeed Nick Roberts as President, EDPM, effective May 1, 2019. Philip previously led the EDPM UK & Europe business.
- Infrastructure; is now comprised of the current Infrastructure Construction, Operations & Maintenance, and MENA Infrastructure business units. This sector will leverage our core expertise in the North American market by delivering major infrastructure projects, both public and private, and our global expertise in delivering, operating, and maintaining projects. We will also utilize our EPC execution capability to provide the delivery element on clean power scopes. Jonathan Wilkinson leads this sector.
- Nuclear; this business remains a cornerstone of our global offering. Strong demand exists for our life extension capabilities, our strength in site and asset management, along with decommissioning, particularly in the US. We continue to identify and target specific new build opportunities. Our nuclear business is already global, Sandy Taylor leads this sector.
- Resources; our full lifecycle services in oil, gas, metals and mining are now combined. These areas remain regionally structured and at considerable scale across the globe. This will allow us to serve the cyclical markets while sharing our deep project execution expertise, which apply across all resource projects, and retaining our important specialisms. Mining & Metallurgy is now focused on winning studies, EPCM scopes, and design and owner's engineering. As previously announced, this sector will be led by Christian Brown, until Craig Muir joins the company as of April 8, 2019.
Other areas of business:
- Technology Ventures; we are consolidating our expertise in how technology should shape the world around us, how it can bring efficiency to our delivery, results for our clients, and more sustainable solutions. This fits naturally with our Clean Power offering, which includes hydro, transmission and distribution, renewables, energy storage, and intelligent networks and cybersecurity. A key focus will be taking forward more ventures like Linxon, and looking at new technology, capabilities and partnerships that will allow us to provide state-of-the-art solutions to our clients. Marie-Claude Dumas leads this development sector and it will be reported financially as part of the Infrastructure sector.
- Capital; our Capital business is now being led by Stephanie Vaillancourt, who continues to lead and will combine the capital business and our Treasury function where we can leverage synergies. There are no changes to our Capital business and will continue to be externally reported separate from E&C.
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 are proud to build what matters. Our teams provide comprehensive end-to-end project solutions – including capital investment, consulting, design, engineering, construction, sustaining capital and operations and maintenance – to clients across oil and gas, mining and metallurgy, infrastructure, clean power, nuclear and EDPM (engineering design and project management). On July 3, 2017, SNC-Lavalin acquired Atkins, one of the world's most respected design, engineering and project management consultancies, which has been integrated into our sectors. www.snclavalin.com
For further information: Media, Daniela Pizzuto, Director, External Communications, 514-393-8000, ext. 54772, [email protected]; Investors, Denis Jasmin, Vice President, Investor Relations, 514-393-8000, ext. 57553, [email protected]