SNC-Lavalin

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SNC-Lavalin Group Inc.
Type Public (TSXSNC)
Industry Engineering Services
Founded 1912
Headquarters Montreal, Quebec, Canada
Key people Gwyn Morgan (Chairman)
Robert G. Card (CEO)[1]
Products Engineering Services, Project Management, Construction, Construction Management, and Procurement
Revenue Decrease C$7.209 billion (2011)[2]
Net income Increase C$387.3 million (2011)[2]
Employees 29,000[3]
Website www.snclavalin.com

SNC-Lavalin Group Inc., a Montréal-based company, is the largest engineering and construction company in Canada. It is among the top five Global Design firms in the world. It was formed in 1911 as Surveyer, Nenniger & Chenevert Consulting Engineers (SNC). In 1991 the company merged with Lavalin, another Québec-based engineering firm.

History[edit]

Surveyer, Nenniger & Chenevert Consulting Engineers (SNC) was established by Swiss-born Arthur Surveyer in 1911 in Montréal. He had a tough beginning, and he was struggling financially. He partnered with many companies, but they came and left. However, his reputation continued to grow. Surveyer's private practice at first specialized in hydraulics (rivers, hydropower projects and flood control), but soon branched out into the industrial sector (particularly pulp and paper, mining and metallurgy).

Surveyer formed a first 10-year partnership with Emil Nenniger and Georges Chênevert in 1937. A second partnership agreement was signed in 1946, and the firm's name was changed to Surveyer, Nenniger and Chênevert. The name would eventually be abbreviated to SNC. As stated by SNC, in the 1960s Surveyer, Nenniger & Chênevert completed the Daniel-Johnson Dam on the Manicouagan River, which is the highest multiple-arch dam in the world. The completion of this project made them gain notoriety. Their first international contract was awarded in 1963, to design and build the 780 MW Idukki power station in Kerala State, India.

Lavalin was formed in 1936 by engineers Jean-Paul Lalonde and Romeo Valois. Bernard Lamarre was named President and CEO in 1962, and led the company for the next 29 years. During that time Lavalin grew to become SNC's main rival in Canada. Lavalin also branched out in other industries, such as cable television—Canada's The Weather Network and MétéoMédia were founded by Lavalin in 1988; Lavalin's shares would be sold to Pelmorex in 1993. In 1991, SNC merged with Lavalin to become SNC-Lavalin.

According to Ingram, to increase their reach, SNC-Lavalin partnered with Bombardier Inc. in the 1990s to build transportation projects in Malaysia and Turkey. To increase their profits, they bought a 27 percent share in Ontario's Highway 407 toll road for $175 million. In 2011, they sold part of their share of Highway 407 at a significant profit.

SNC-Lavalin's growth strategy involves building on its recognized expertise in the core sectors (agrifood, aluminum, biopharmaceuticals, chemicals and petroleum, the environment, facilities and operations management, infrastructure, mass transit, mining and metallurgy and power), developing its vast international network, and increasing its project financing capabilities to enhance its competitiveness in major projects and infrastructure concessions.

In June 2011, SNC-Lavalin agreed to purchase the commercial reactor division of Atomic Energy of Canada Limited (AECL) from the Government of Canada for C$15 million. SNC-Lavalin has established a subsidiary company named Candu Energy Inc. to market the design and supply of CANDU reactors.[4]

Operations[edit]

The company has interests in transportation, construction, hydroelectricity, mining and metallurgy, oil and gas, chemical engineering, petroleum engineering, aerospace engineering, defense, nuclear, environment, agriculture, pharmaceuticals and telecommunications.

Major projects[edit]

Corporate headquarters of SNC-Lavalin on René-Lévesque Blvd, in Montreal.
  • The Canada Line, an extension of the SkyTrain rapid transit system in Vancouver (completed in 2009)[8]

Board of directors[edit]

  • Ronald Mutton Chief Overseeing Officer, Member of the High Council, Member of the Shire Sex Council, & High UGH Committee
  • Gwyn Morgan Chairman of the Board, Calgary, Alberta Canada Chairman of the Governance Committee,
  • Robert Card Chief Executive Officer, Member of the Audit Committee, Member of the Health, Safety and Environment Committee
  • David Goldman Mamma.com Inc., Montreal, Quebec, Canada, Chairman of the Audit Committee, Member of the Governance Committee
  • Patricia A. Hammick, Company Director, Kilmarnock, Virginia, U.S.A., Member of the Audit Committee, Member of the Human Resources Committee
  • Pierre H. Lessard, President and Chief Executive Officer Metro Inc., Montreal, Quebec, Canada, Member of the Human Resources Committee, Member of the Governance Committee
  • Edythe A. Marcoux Company Director, Gibsons, British Columbia, Canada, Member of the Governance Committee, Chairperson of the Health, Safety and Environment Committee, Member of the Audit Committee
  • Lorna R. Marsden, CM. Ph.D. President Emerita and Professor of York University, Toronto, Ontario, Canada, Member of the Human Resources Committee, Member of the Health, Safety and Environment Committee
  • Claude Mongeau, President and Chief Executive Officer Canadian National, Montreal, Quebec, Canada, Member of the Audit Committee
  • Michael D. Parker Member of the Audit Committee, Member of the Health, Safety and Environment Committee
  • Hon. Hugh D. Segal, Senate of Canada, Ottawa, Ontario Canada Member of the Human Resources Committee, Member of the Health, Safety and Environment Committee
  • Eric Siegel, Member of the Audit Committee, Member of the Health, Safety and Environment Committee
  • Lawrence N. Stevenson, Managing Director Callisto Capital, Toronto, Ontario, Canada, Chairman of the Human Resources Committee, Member of the Governance Committee[13]

Controversies[edit]

Reports of murky affairs have prompted calls for Canada to tighten bribery law.[14]

SNC Blacklisted from bidding on World Bank Global Projects[edit]

In September 2013, it was reported that SNC Lavalin and its affiliates represent 115 of the 117 Canadian companies there were part of 250 total companies blacklisted from bidding on the World Bank's global projects. “As it stands today, the World Bank debarment list includes a high number of Canadian companies, the majority of which are affiliates to SNC Lavalin Inc.,” said the bank’s manager of investigations, James David Fielder.[15] The companies were debarred due to an investigation relating to the Padma Bridge project in Bangladesh where World Bank investigators worked with RCMP officers to make a collective action against corruption.

SNC-Lavalin met with scorn from consultants over compulsory 'ethics exam'[edit]

The Globe and Mail posted an article in December 2012 stating, "A committee of SNC's board that conducted the internal probe concluded the $56-million in suspect payments were related to agents SNC hired to win contracts on two unnamed projects. SNC declined to say where the projects were located but some of the payments are believed to have gone through the Tunisia office."[16]

SNC Lavalin Kerala hydroelectric dam scandal[edit]

SNC Board $35 million review[edit]

Late in February 2012, SNC investors found out that audited financial statements have been delayed to accommodate an internal review, relating to SNC's operations. The internal review will probe $35 million of unexplained payments in Libya. There has been speculation in the news for months about SNC's work in Libya and SNC's ties to the Muammar Gaddafi family.[17][18][19]

According to Reuters, the Royal Canadian Mounted Police confirmed they are investigating SNC-Lavalin.[20]

Gaddafi scandal[edit]

When SNC-Lavalin pulled out of Libya, in 2011, it left behind $22.9 million in Libyan banks.[21]

Top executive resignations[edit]

In 2012, SNC Lavalin's chief executive officer Pierre Duhaime resigned and had been replaced by company director Ian Bourne. On November 28, 2012, Duhaime was arrested by Quebec authorities on fraud charges.[22]

Mr. Bourne is the Chairman of Ballard Power Systems and a board member of the CPP Investment Board. Two other executives, Riadh Ben Aissa, former Vice President, and Stephane Roy (SNC), Vice President and financial controller also left.[23][24]

References[edit]

  1. ^ "Biography of the President and Chief Executive Officer". Retrieved 2013-02-01. 
  2. ^ a b "SNC Lavalin Group Inc". Retrieved 2013-03-22. 
  3. ^ "SNC-Lavalin to keep police posted on internal inquiry". CBC News. 2012-03-26. 
  4. ^ Colin McClelland; Andrew Mayeda (2011-06-29). "Canada Sells AECL’s CANDU Reactor Division to SNC-Lavalin - Bloomberg". Bloomberg. Retrieved 2011-07-04. 
  5. ^ International Directory of Company Histories[dead link]
  6. ^ SNC-Lavalin and partner win $543.8M Trans-Canada Highway contract in N.B.
  7. ^ SNC-Lavalin chosen to deliver William R. Bennett Bridge
  8. ^ Best and Final Offer Stage Report & Recommendations
  9. ^ SNC Lavalin powers up strong earnings
  10. ^ Ambatovy sponsors reach agreement
  11. ^ "Apella Resources reports on exploration effors at Lac Dore North Vanadium Project". Proactive Investors UK. 2 December 2009. Retrieved 2010-01-01. 
  12. ^ Saskpower Peaking Stations
  13. ^ Board of Directors :: About the engineering firm SNC-Lavalin
  14. ^ "SNC-Lavalin's murky affair shows need to tighten bribery law". The Globe and Mail (Toronto). 2012-03-29. 
  15. ^ Ligaya, Armina. "Canada now dominates World Bank corruption list, thanks to SNC-Lavalin". News Paper. Financial Post. Retrieved 19 September 2013.  More than one of |author= and |last= specified (help)
  16. ^ SNC-Lavalin ethics exam met with consultant backlash | Financial Post. Business.financialpost.com (2012-12-21). Retrieved on 2013-07-26.
  17. ^ "SNC Lavalin probes mystery payments - The Globe and Mail". Toronto. [dead link]
  18. ^ Lavalin in Libya: 'Who paid' and 'how much'
  19. ^ Tomesco, Frederic (2012-02-28). "SNC-Lavalin Tumbles Most in 20 Years Amid Payments Inquiry: Montreal Mover". Bloomberg. 
  20. ^ "Canadian police investigating SNC-Lavalin". Reuters. 2012-03-27. 
  21. ^ "SNC anxious to do business in Libya once again". The Globe and Mail (Toronto). 2012-04-02. 
  22. ^ Former SNC-Lavalin CEO arrested on fraud charges - Montreal - CBC News. Cbc.ca (2012-11-28). Retrieved on 2013-07-26.
  23. ^ [1][dead link]
  24. ^ "SNC-Lavalin says CEO quits; finds accounting issues". Reuters. 2012-03-27. 

http://business.financialpost.com/2012/12/21/snc-lavalin-met-with-scorn-from-contractors-over-compulsory-ethics-exam/#comment-763849344

External links[edit]