Business

SNC-Lavalin signs agreement-in-principle to build nuclear reactors in China

MONTREAL — SNC-Lavalin (TSX:SNC) has signed an agreement-in-principle for a new joint venture that would build nuclear reactors in China.

The deal with China National Nuclear Corp. and Shanghai Electric Group Co. Ltd. would see the creation of a new company to develop, market and build advanced fuel Candu reactors.

The Montreal-based engineering firm says the new joint venture is expected to be registered in the middle of next year and would be followed by the establishment of two design centres — one in Canada and another in China.

Thursday's announcement comes after the signing of a framework agreement two years ago and is subject to government and regulatory approvals.