Big Orders Rolling in

Daelim Industrial Co. adds $1.8 bln project to order backlog in Middle East

Daelim Industrial Co. recently clinched a deal from Iran to build an oil refinery complex in Esfahan, Iran worth $1.8 billion, the company said March 16.
The National Iranian Oil Engineering and Construction Co. is the owner of the mammoth project, which Daelim won in consortium with Uhnde Co. and Lurgi Co. of Germany.
Daelim said it has already signed a deal worth $70 million in the areas of engineering and procurement service with NIOEC and by the end of this year, Daelim plans to switch the deal to lump sum contract. The deal is likely to amount to $1.8 billion and Daelim's share will amount to $700 million, the company said.
The company said it already got a project order in February from National Iranian Oil Co. for the construction of storage tanks for LNG an LPG and the Esfahan project is the second project that the company got from Iran so far this year.
Iran has the second largest natural gas reserves in the world after Russia, in addition to producing 12.4 percent of crude oil in the world.
Iran is expected to continue to make investments in oil refinery, gas and petrochemical facilities and Korean builders are likely to have more large Iranian projects on their way in the future.
In the meantime, Daelim secured a deal to build a the largest polycarbonate production plant in the world in Saudi Arabia with the annual production capacity of 260,000 tons. The order was placed by Saudi Kayan Petrochemcial Co. targeted to be completed in 2010 in Al Jubail, Saudi Arabia.
Daelim signed engineering and procurement service contract and construction management contract on Feb.7 and received the Letter of Award. The official contract is to be signed in a month or two and by the end of this year, the contract will be switched to a lump-sum turnkey basis which will bring total amount of contract to $1 billion.
Daelim currently is engaged in the construction of a 65,000 ton polycarbonate plant for Honam Petrochemical Co. from last year, along with polycarobonate plants ordered by Samyang Co. and Kumho Petrochemical Co. in the country. The company is also engaged in the construction of the Propane DeHydrogenation plant ordered by Sahara & Basell Co. in Al Jubai, Saudi Arabia, which is part of the 450,000 ton annual capacity polypropylene plant. The company is also building a utility plant for the construction of 500,000 ton annual capacity polypropylene plant.
Daelim Industrial continuous to maintain strong position both at home, abroad are predicted to resume investment in new plant construction and expansion projects i n the wake of the economic turnaround overcoming the Asian financial crisis. In particular, Thailand is planning to invest in new plants and expansion of existing plants under its plan to turn the country into a petrochemical industrial hub in Asia.
Daelim is expected to win high-quality project orders from SaudiDaelim Industrial Construction Co. is one of the most experienced overseas builders in Korea with vast know-how and expertise in undertaking mega-projects overseas, especially in the Middle East. The company has been in the building industry for the past 60 years since its founding in 1939, with a large contribution to the growth of the construction industry in Korea.
The company has made strides by accumulating experiences and expertise in a wide-ranging areas of construction including building, housing, architecture, petrochemical. Plant and power plant. As the first Korean construction firm to export its construction technology abroad by utilizing the most experiences it has gained at home, Daelim Industrial has become a world-class builder undertaking mega-projects in a number of regions in the world, especially, in the Middle East.
The mega-projects in the Middle East include the EWDP Project for Kuwait Oil Co. in Kuwait, Ethylene Project for Petropars in Iran and IIP Project for BASF in China, which are all in the final stages of the construction. Other projects include South Pars Gas Development Project Phases 6,7 &8 for Petropars in Iran and Low Density Polyethylene Project of Amir Kabir Petrochemical Complex in Iran.
In addition, the company also has been undertaking the construction of Propane Dehydrogenation/Polypropylene Project in Saudi Arabia and Fluid Catalytic Cracking Project in the Philippines, of which design and procurement and underway. nw

(photo from left) a petrochemical plant built by Daelim.: Chairman of Daelim Industrial Lee Yong-koo.