Yongnam Holdings (SGX:AXB) subsidiary, Yongnam Engineering and Construction (YNEC), entered into a novation agreement with Aztec Steel for the sub-contract of fabrication, delivery, installation and dismantling projects, according to a filing with the Singapore Exchange on Tuesday.

Through the novation agreement, a replacement sub-contractor will perform and be bound by the terms of each contract in every way. Meanwhile, Daewoo-Dongah Joint Venture, the main contractor, and YNEC will release and discharge each other from the performance of other party's obligations, duties and liabilities under the sub-contracts.