Canada-based engineering company SNC-Lavalin and Swiss electrical and electronics equipment-maker ABB have formed a new joint venture company Linxon.
The transaction was announced last December and the new company is expected to begin operations from 1 September 2018. SNC-Lavalin will own the majority and controlling stake in the joint venture.
The company will provide turnkey electrical alternating current substations projects related to renewable and conventional power generation, power transmission and transportation solutions.
These turnkey solutions will include project design, engineering, procurement, construction, management, commissioning and after-sales support. Linxon will have an opening order backlog of $340m.
Linxon board of directors chair and SNC-Lavalin Clean Power president Marie-Claude Dumas said: “We are delighted to join forces with ABB and bring together our respective strengths to deliver sustainable energy solutions for substations, while providing value for customers through cost efficiencies and an enhanced delivery capability.”
Frédéric Tréfois, who currently handles engineering, procurement, construction solutions within ABB’s Grid Integration business, has been appointed as Linxon’s CEO.
ABB’s Power Grids division President Claudio Facchin said: “Linxon will combine ABB’s technology leadership with SNC-Lavalin’s expertise in managing infrastructure projects to deliver enhanced customer value.
“This joint venture will help capture new business opportunities for both companies and reinforces our strategy of forging new alliances and business models, as part of the ABB Power Grids ‘Power Up’ transformation program.”
The joint venture company is expected to help in meeting the evolving needs of power grids across the globe for safe and reliable electrical substations.
Linxon will integrate ABB’s technology in power transmission and distribution with SNC-Lavalin’s experience in delivering infrastructure projects.