Linxon will undertake alternating current electrical substation projects related to renewable and conventional power generation, power transmission and transportation solutions. Its scope of works will include project design, engineering, procurement, construction, management, commissioning and after-sales support.
The joint venture will have an opening order backlog of US$340m (£262m).
"We are delighted to join forces with ABB and bring together our respective strengths to deliver sustainable energy solutions for substations" said Marie-Claude Dumas, chair, board of directors, Linxon and president of clean power, SNC-Lavalin.
"This joint venture will help capture new business opportunities for both companies and reinforces our strategy of forging new alliances and business models" said Claudio Facchin, president of ABB's power grids division.
SNC-Lavalin has a majority and controlling interest in the joint venture.