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SNC-Lavalin Group Inc. is selling its South African resources business as part of its corporate restructuring.

The Montreal-based engineering and construction firm says it has entered into an agreement to sell the business to local management for an undisclosed price.

The South African business has about 1,800 employees and primarily services construction and site maintenance clients.

SNC-Lavalin is exiting the resources business as it focuses on professional services and project management, which generate consistent earnings and cash flow.

In March, it closed Valerus, a non-core, mid-stream oil and gas production and processing facilities business based in Houston, Tex.

The South African transaction is expected to close in the coming weeks and is subject to conditions including approval of the exchange control authorities of the South African Reserve Bank.

“We have undergone a full review of our resources business, and have been taking actions to align with our overall strategic direction and focus on our high potential engineering services. The sale of our South African resources business is another important step in this direction,” SNC-Lavalin chief executive Ian Edwards said.

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