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."
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
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