Good afternoon.
Thank you for this opportunity to present SNC-Lavalin's views on the nuclear industry in Canada.
First, I will give a brief introduction of SNC-Lavalin; second, I will talk about the ongoing SNC-Lavalin involvement with AECL and the other nuclear projects; and third, I will outline the need for urgent and immediate action to determine the future of AECL and the whole Canadian nuclear industry.
SNC-Lavalin has its headquarters in Canada, with annual revenues of over $7 billion and a staff of over 22,000 full-time employees. Half our revenues come from our international operations; however, more than 65% of the employees are based here in Canada. We make high-value products and export them. In this way, we generate more revenues, which means more benefits for Canadian employees. This added value helps the growth of each of our offices in the different provinces of Canada.
We are one of the leading groups of engineering construction companies in the world. We are also a global leader in the ownership and management of infrastructure. Currently, we're managing about 10,000 projects, with a capital value of over $50 billion internationally. This makes us a clear leader in the management of megaprojects. SNC-Lavalin provides engineering, procurement, construction, project management, and project services in the four major sectors—power, oil and gas, mining, and infrastructure. We have projects in 100 countries and permanent offices in 35.
My second point is SNC-Lavalin's involvement with the nuclear industry and AECL. We have been involved in the nuclear industry for the past 42 years. During all of these years we have had a relationship with AECL. Together we have been involved in the entire span of CANDU projects in Canada and overseas. Working closely in support of AECL on 14 CANDU units, and more recently in support of Team CANDU, SNC-Lavalin has been responsible for the balance of nuclear steam plants, conventional turbine generators, and auxiliary plants. Together, over the past 13 years, we have delivered seven new nuclear plants on schedule and on budget. These are key numbers that you can compare with those of our biggest competitors, the biggest nuclear technology providers in the world. No other company has delivered seven new nuclear reactors in the past 13 years. All this has been done with AECL, Team CANDU, the OCI, and the Canadian industry.
Recently, we completed the balance of a nuclear steam plant in the successful Qinshan Project, which is one of the best-performing reactors in the world. You have a third party that reviews the up-time of a nuclear reactor and the percentage of it that's performing. Qinshan, with the CANDU technology, is the leading reactor in the world. It is rated higher than all other technologies, all other reactors. Various magazines compile the rankings. It is not a Canadian opinion; it is an international opinion based on actual performance. This was done with the OCI, together with the Canadian nuclear industry.
The ongoing involvement in the CANDU reactor system has led to a partnership with AECL in the design and development of reactors. We worked together on the CANDU-3, the CANDU-9, and on the advanced CANDU reactors. As I mentioned, the CANDU reactor designed by AECL in China is one of the best-performing reactors in the world.
SNC-Lavalin has over 30 offices in 35 countries, and we're actively marketing the CANDU technology throughout the world. It brings us our presence, and we provide support and alignment for Canadian technology internationally.
Third, I want to talk about the future of AECL and the Canadian nuclear industry. AECL, with Team CANDU, was the only conforming bid on the international competition for two new reactors at Darlington. OPG had an RFP. They were selected internationally. They were the biggest technology providers, and at the end of the day, Team CANDU, with AECL, was the only conforming bid for a generation III project.
The bidding process, however, has now been suspended by Infrastructure Ontario, pending clarification from the federal government regarding AECL's future. The federal government is the owner of AECL, and it must make a decision about the future of AECL. It has come out openly that they were supposed to review and decide on the future ownership, structure, and potential of it. This was done a few months ago.
Based on this new ownership, SNC-Lavalin--and I am only speaking for SNC-Lavalin, not for the rest of the OCI--needs to make a decision on how we are going to keep bidding jointly with AECL and other Team CANDUs internationally. Each bid we put forward to develop and support a new nuclear reactor involves an enormous amount of money. These are big bids. They are big packages. They involve a lot of time, effort, energy, and support internationally.
Depending on the future of AECL, we will need to make decisions on how best to support it and how best to go forward. The typical cell cycle for a nuclear plant can fluctuate from 5 to 15 years. We have been working with many clients, in many countries, over all those years, and we believe we're close to having an agreement with some of them.
To clarify, and so we all understand, CANDU is the technology and AECL is the owner of that technology. However, when a CANDU plant is built, AECL's actual scope of work, which is part of the design of the overall plant, is only one small component. The vast majority of the project is executed by other Canadian companies and partners. Therefore, when we make a decision on AECL, unfortunately--or fortunately--it has a direct effect on the full line of products and companies that will be supporting it, executing it, employing Canadian employees, and that will also be paying taxes and looking for growth and opportunity in world markets to support it.
I'll repeat that point: a decision on AECL is a decision on the CANDU. A CANDU plant has an array of groups executing the project, and AECL has only one small part.
With regard to the privatization of AECL, when we meet potential international clients we are asked why they would purchase CANDU nuclear technology if the owner of AECL plans to sell to unknown buyers. Another way to understand the question is through the client's perspective. When we propose the CANDU plant, they ask why they would choose CANDU technology over other technologies if after the change of ownership they end up with a technology provider that they had previously rejected.
I'll also make the point in French.
When we meet clients, they ask us why they would choose CANDU technology rather than that of some other suppliers, if that other supplier might end up owning AECL. Clients have no way of knowing what will happen. As I explained earlier, the sale cycle is very long, and if a client is ready to sign an agreement now, there must not be any delays. All the efforts by Team CANDU, SNC-Lavalin, AECL and the industry may be thwarted if the needed transparency is not ensured now.
International clients understand that the process to privatize a company like AECL can easily take two or more years. This is a big company. It has a lot of different projects, some liabilities, and it has processes. If you go to tender, first, one needs to find a group that will do the privatization; second, you need to prepare a big document; third, you need to go to the market to find out who will bid, and afterwards there is the due diligence on the final process.
We've been working on projects for many years, and there is an opportunity for new ownership, but we have to make sure the decision on ownership can be done in a short period of time to prevent a process that could drag out for a year or two. If not, our potential clients, who are ready now, could say they will wait to see who the new owner is.
In conclusion, because of global concern with greenhouse gases, a nuclear renaissance is happening worldwide. Canada must be part of it. We've seen it in Italy; we've seen it in Germany. All those countries that stopped it before want to be part of the new renaissance.
We are at a crossroads for the future of the nuclear industry for Canadian companies. The federal government must urgently take steps to convince the world that AECL is still in business. Only in this way can it ensure the development of a powerful nuclear economic sector in Canada, creating high-quality jobs for national and international projects. This will allow companies like SNC-Lavalin and other companies like the OCI to grow their Canadian base and export products internationally, just as we've been doing for the past 42 years.
We must all remember that a decision on AECL's future ownership will be a decision that will impact all of the Canadian companies, 30,000 people, and over 150 companies working jointly on the CANDU technology and exporting services from Canada internationally.
We need clear and decisive decisions as soon as possible, if not now.
Thank you.