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ALGIERS (Reuters) - Armed insurgents in Algeria have kidnapped an Algerian engineer working for Canadian construction firm SNC-Lavalin, the company said on Wednesday.

The firm said in a statement that local authorities were coordinating negotiations on the man's release.

Two Algerian newspapers reported on Wednesday that the man, who has not been identified, was seized by a group of armed men in the Bouira region, a stronghold of al Qaeda-linked militants about 150 km (90 miles) southeast of the Algerian capital.

The newspapers said the man had been working on a project to build a water treatment plant in the region and that he was seized on his way to work. They said security forces had launched an operation to find him.

"There is confirmation of an engineer being kidnapped in Algeria on Sunday morning," Leslie Quinton, SNC-Lavalin's Vice-President for Global Corporate Communications, said in an email sent to Reuters.

"Negotiations for his release are being coordinated directly by the local authorities, so unfortunately we are not in a position to offer any additional information, given the circumstances."

"We obviously hope for him and his family that he is returned safely home as soon as possible."

He said the current project was nearing completion and that SNC-Lavalin intended to remain in Algeria. The firm had taken steps to ensure the safety of its other staff in the region.