Daelim on the Go

The construction firm targets to win 5 tln won in new orders this year

Daelim Industrial Co.(Vice Chairman & CEO Lee Yong-koo) recorded 3,039.9 billion won in sales, up 1.8 percent YoY, for the year to Q3 with gross profit of 408.5 billion won, up 6.4 percent and operating profit of 182 billion won, down 3.4 percent YoY. Net income amounted to 227.6 billion won, down 22.3 percent YoY. The company plans to record 4.3 trillion won in sales, 621.4 billion won in gross profit and 322.4 billion won in net income. Daelim projects its total orders would come to around 5 trillion won this year including 400 billion won in overseas projects with 3,660 billion won in sales and 11.356 billion won in backlog of orders.
The Daelim Industrial Co. said recently that it has secured an order to build a petrochemical plant in Saudi Arabia worth $610 million in consortium with Technimont of Italy.
Sahara-Basell Co. ordered the project designed to build a polypropylene plant with an annual capacity to turn out 450,000 tons of the product in Al Jubail in Saudi Arabia.
The project also includes the construction of a Propane Dehydrogenation plant and Daelim will take charge of building the plant by November, 2008.
The Propane DeHydrogenation plant requires high-technology designed to produce the product from propane and Daelim beat its rivals to win the project including Stone and Webster of the United States, and Lurgi & Uhde of Germany. Sahara-Basell is a joint-venture company between Sahara Petrochemical Co. and Basell, a multinational company.
Daelim is currently engaged in the construction of large projects in a number of Middle East countries including Kuwait and Iran.
Daelim also announced on December 12 last year that it has secured an order for the construction of an oil refinery worth $180 million in the Philippines from Petron Corp. The project involves the modernization of an old oil refinery in Bataan to up grade the qualities of its gasoline and diesel as well as expand the production capacity and produce 140,000 tons of propylene a year.
The company will take charge of every aspect of the project from designing, material purchase, construction and test-run aimed at completing the project by December, 2007. Daelim has a record of completing six similar projects in Southeast Asia. Petron Corp., which ordered the project is a joint venture firm between the Philippine National Oil Corp. and Aramco in Saudi Arabia. Daelim plans to step up its effort to win more project orders in Southeast Asia and the Middle East, which is rich with oil dollars.
Daelim has executed significant construction projects that have been marked as milestones in Korean economic development such as the Seoul-Busan Expressway, Cheonggyecheon restoration, petrochemical and fertilizer plants in Yeosu and Ulsan, power plants, and harbors.
Since the mid-1960s, the company has taken the initiative to exploit the overseas construction market. Daelim set up its branch in Singapore in 1971. In 1974, Daelim set up branches in Malaysia, Saudi Arabia, Bangladesh, Indonesia and Iran. In addition, it established Daelim Engineering to prepare for the E&C system and has grown its competitiveness to win large-scale overseas construction orders that are executed in turnkey methods. While conducting representative construction projects nationwide such as the National Assembly building, Namsan Children's Hall, and Pohang steelworks, it went public in 1976. In November of 1976, it was awarded the Golden Tower Industrial Medal from the government.
The company became a world-wide construction firm with proven credibility and expanded its branches further around the globe including Oman, Tokyo, Bahrain, London, Egypt, Kuwait, and Nigeria. The company took over Honam Ethylene and entered the petrochemical industry in 1981 followed by its take over of Kia Zinc and merged it with Daelim Industry to launch Daelim Motor.
The company accelerated its diversification with the acquisition of those companies. The experience provided Daelim with some distinct know-how in plant construction. On the occasion of its 50th founding anniversary in 1989, Daelim declared its second foundation strategy and formulated its corporate philosophy in the slogan "Han Sup Spirit,"which means the creation of a pleasant and affluent life and the continuation of vast/infinite development. nw

(from Left) South Pars Gas Development Phases 6,7, & 8 projects in Iran being built by Daelim Industry. Vice Chairman of Daelim Industry Lee Yong-koo.