Yongnam Holdings (SGX:AXB) subsidiary Yongnam Engineering and Construction 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 bounded by the terms of each contract in every way. Meanwhile, Ssangyong Engineering and Construction, the main contractor, and Yongnam Engineering will release and discharge each other from the performance of other party's obligations, duties and liabilities under the sub-contracts.