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SNC-Lavalin has increased its engineering and construction capabilities in Africa with the recent acquisition of Kentz.
Southern Africa SNC-Lavalin managing director Graeme Johnson said the acquisition ultimately enhanced the company’s ability to provide additional services and carry complex projects.
“We are growing due to the broader focus this has given us in other sectors such as oil and gas, infrastructure, power and water,” says Johnson.
SNC-Lavalin 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’s considerable experience in the mining and minerals sector in Africa, combined with Kentz’s experience in the oil and gas sector in particular, positions the company to become aTier 1 engineering and construction company.
This brings together SNC-Lavalin’s strong front-end engineering and design capabilities and Kentz’s expertise in structural, mechanical, electrical, instrumentation and piping (SMEIP) construction management, commissioning and operational capabilities.
It allows both companies to tap into potential synergies and strengthen their offering in sub-Saharan Africa. Their new integrated service offering bolsters capabilities in the oil and gas sector, particularly with regard to liquefied natural gas, shale gas and oil sands, pipelines and offshore jackets to steam-assisted gravity drainage.
“Both SNC-Lavalin and Kentz have been focused on growth in Africa for decades. Southern Africa is strategically very important to us,” adds Johnson.
Kentz has been providing services in Africa since the late 1970s and has undertaken some of the largest greenfields construction projects on the continent. The acquisition of Kentz has given SNC-Lavalin an ideal platform to target those sectors where Kentz has a good track record already, and vice versa. The two companies have similar clients, and will be able to offer these clients a broader suite of services and expertise.
SNC-Lavalin has built a solid reputation as an Engineering, Procurement, Construction and Management (EPCM) company. The acquisition of Kentz, therefore, strengthens its service offering and broadens its scope to include Engineering, Procurement and Construction (EPC) contracts as well. The latest trend is for companies to opt for EPC contracts in order to minimise costs and reduce risk.
SNC-Lavalin now has greater flexibility as an organisation in terms of meeting the specific needs of its clients in Africa, be it on an EPCM or an EPC basis.
“What we have now is a solid partner that also has a significant track record of safely and reliably completing projects in Africa,” says Johnson.
Both companies know how to operate in Africa, which is distinctly different than operating on any other continent. These differences range from cultural nuances to the logistical challenges related to working in remote locations. SNC-Lavalin understands the reality of delivering projects on the continent, and how important skills transfer and local community upliftment is in Africa.
SNC-Lavalin has played a significant role in the development of mining and metallurgy projects on the African continent since the mid-1960s, including the successful execution of a wide range of projects in many African countries, ranging from small studies to major EPCM projects. Its portfolio of successfully completed projects cover a range of commodities, from nickel to alumina/aluminium, copper, gold, sulphuric acid plants, mineral sands, zinc, diamonds, iron ore and potash.
SNC-Lavalin established a South African office in Johannesburg in 2006, providing technical expertise, project and construction management and procurement services mainly in mining and metallurgical projects throughout Africa.
As a multi-disciplinary organisation, SNC-Lavalin has the capability to undertake every stage of a mining project, from initial scoping studies and metallurgical test work through to feasibility analysis and final design, engineering, procurement and construction management, as well as decommissioning.
