According to a statement issued by Stan Marshall, chief operating officer of Nalco, Pennecon signed a contract to start working at Muskrat Waterfall production facilities.
The project was signed for the closure of Astaldi and to reduce the risks of cost and timing.
Astaldi Canada was the main contractor leased to work in the Muskrat Waterfalls area in the central Labrador.
In October, Nalcor announced that it had broken ties with a financially troubled company and ordered a hearing with concern that the company could not pay payroll.
More than 120 non-unionized employees of the Muskrat Waterfalls Astaldi still await their final checks.
According to Marshall, Newfoundland and Labrador-based Pennecon workers will start sending "immediately" to the site.
"The Firm first understands the recruitment protocols of Labrador and later Nalcor, who follow the inhabitants of the island, providing recruitment preferences for qualified members of Innu Nation."
Marshall said the work of other contractors in the project would continue as planned.
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