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SNC-Lavalin Hatch Joint Venture Awarded Contract for New AP60 Smelter from Rio Tinto Alcan

SNC Lavalin SNC-Lavalin is pleased to announce that it has now received the go-ahead for the implementation of the first phase of Rio Tinto Alcan's AP60 project in Saguenay-Lac-St-Jean, Quebec. SNC-Lavalin, as a 50/50 joint venture partner with Hatch, will provide project management, engineering, procurement, construction management and pre-commissioning services to implement this new energy-efficient and cost-effective aluminum smelting technology (AP60) aimed at providing a 40% higher output per pot than at existing smelters.

SNC-Lavalin has been involved in the project since the initial development phase, which began in 2007. In addition to funds already invested, Rio Tinto Alcan has approved $758 million to complete the first phase of the AP60 plant, which will include 38 pots for an aluminum production capacity of 60,000 tonnes per year. The project also includes associated infrastructure for Phase 1 and future phases.

"We are extremely pleased to participate in this highly innovative aluminum smelting project," said Feroz Ashraf, Executive Vice-President, SNC-Lavalin Group Inc. "Our association with Rio Tinto Alcan is built on more than 50 years of successful teamwork at many of their largest facilities in Canada and elsewhere. Our execution plan, in line with that of Rio Tinto Alcan, is to work closely with local contractors, manufacturers and service providers to deliver the project on budget and schedule, and to the highest standards of quality and safety."

Design and construction activities are underway for Phase 1 and will be accelerated for an expected completion date of 2013.

SNC-Lavalin (TSX:SNC) is one of the leading engineering and construction groups in the world and a major player in the ownership of infrastructure, and in the provision of operations and maintenance services. SNC-Lavalin has offices across Canada and in over 35 other countries around the world, and is currently working in some 100 countries.

Published 22/12/2010

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