KPS Braces for Opening of
Domestic Maintenance Market


Declares its mid- and long-term strategy with a goal of raising sales to 1 tln won by 2015


Korea Plant Service & Engineering Co. Ltd. (KPS) is projected to chalk up 585.1 billion won in sales in 2006 over 10 billion won than this year's target, KPS CEO-President Ham Yoon-sang said.
KPS'remarked growth was attributable to a rise in planned and preventive maintenance projects the company has landed and its aggressive exploration of new and renewable energy areas.
However, future business prospects are not rosy as competition is to be in place in the domestic maintenance market and foreign power facility manufacturers are moving to penetrate the market.
With business uncertainties its mind, KPS is throwing its heart and soul into meeting customers'needs by capitalizing on excellent technology prowess and sincerity, while all executives and staff members are putting more energy into conducting business activities with a concerted determination to build a better future, KPS CEO Ham said.
KPS has already declared the mid- and long-term business strategy,
dubbed "ACT KPS 2015,"designed to proactively cope with rapidly-changing business environment and preoccupy the market under a competitive regime.
Specifically, KPS is putting into practice five strategic directions - customer satisfaction, pursuit of innovation, focus on technology, gifted manpower development and global management - and 10 core tasks with a goal of becoming a global top-class integrated plant service provider with 1 trillion won in 2015 target sales.
KPS is making strenuous efforts to meet customers'demands for offering quality maintenance services by acquiring new technologies to maintain sustainable development and continuous growth in an era of global competition following the launch of the WTO regime and spread of FTAs.
All KPS executives and staff members are doing their best in achieving the target set by the ACT KPS 2015.
KPS became the first company in history of public organizations to be awarded with the Excellent Quality Competition Prize this year for the eighth year in a row,
a historic feat KPS has achieved in terms of quality control after competing with even large corporations from the private sector.
Thanks to KPS'across-the-board quality management innovation efforts, KPS garnered 93 points, the highest among public organizations in the customer satisfaction survey for this year. KPS also had the honor of receiving 2006 Korea Service Grand Prize, 2006 Service Quality Excellent Company Prize and 2006 Korea Customer Satisfaction Management Grand Prize.

ENTRY INTO POWER FACILITY OPERATION. KPS has been undertaking operation & maintenance projects for GMR diesel power plants, Chanderiya thermal power plants and Vemagiri thermal power plants. It is noteworthy that KPS is in charge of operation as well as maintenance of power facilities.
Ordering power facility operation and maintenance projects simultaneously in foreign countries has become a precedent as General Electric has been undertaking O&M projects for 60 power plants in 16 countries.
Corresponding to the global trends, an increasing number of O&M projects have been placed for construction of power facilities with investments from the private sector. KPS is now seeking to land an O&M project, ordered by Eco Energy Co.
KPS added operation services in its business areas to the articles of association to lay a legal foundation for its entry into domestic private sector-initiated power generation and overseas power facility operation service industries.

GLOBAL PRESENCE. The world has been getting a globally united market in the wake of the removal of barriers among nations and ideologues and the effects of the WTO regime and the spread of FTAs.
It is an imperative that KPS has turned to exploration of overseas markets. Amid this backdrop, starting officials from TurboCare of Germany, so far this year, many representatives from foreign countries, including those from GMR of India, TNB REMACO of Malaysia, CAMCO of the United Arab Emirates, Guangdong Nuclear Power of China and TGS of Canada, have visited KPS in succession.
In particular, KPS has already inked a contract on providing assistance in maintenance technology for nuclear power plants with Guangdong Nuclear Power Plant. KPS is likely to land more deals, as the company signed an agreement on planned and preventive maintenance projects for Deir-Amar and Zahrani combined cycle power plants in Lebanon together with TurboCare.
KPS proved its maintenance technology prowess by dispatching its top-notch maintenance personnel to carry out a core technology maintenance service project for nuclear power plants to the United States, one of the nuclear power plant maintenance powerhouses. Global attention is being paid to KPS, which has been striving to acquire technology since 1974 when the company suffered difficulties due to a lack of technology.

CONSTRUCTIVE LABOR-MANAGEMENT TIES. This year is a stellar for improving relations between KPS labor and management to a further matured level, paving the way for creating a "constructive labor-management culture."KPS has become the first company among the power companies related to KEPCO to conclude 2006 wage negotiations and introduce a wage system based on productivity to transform labor-management ties into a productive and cooperative labor-management ties.
The contract between KPS labor and management is construed as an exemplary case of demonstrating co-prosperity between labor and management, departing from conflicts and hatreds.
KPS CEO Ham recalled that the past one year was a year for having made more fruitful achievements than any year and laid a foundation for a sustainable growth of the company, saying that "the achievements were owned to our determination for innovation."He expressed the hope that if KPS's innovation activities are spread like a wild fire, KPS will achieve the ultimate targets of ACT KPS 2015. nw

KPS CEO-President Ham Yoon-sang


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