Daelim Keeps Rolling

Construction firm boosts operating profit 64 percent YoY in Q3,
celebrates 68th anniversary

Daelim Industrial Co. posted sales of 3.299 trillion won in Q3, up 8.5 percent YoY, with 2.789 trillion won coming from the construction sector, up 9.7 percent YoY, and 510.1 billion won in the petrochemical plant sector, up 2.8 percent YoY, the company announced recently.
Operating profit for the quarter amounted to 294.3 billion won, up a whopping 63.6 percent YoY, with 263.2 billion won posted by the construction sector, up 56 percent YoY, and 31.1 billion won in the petrochemical plant sector, up 177.7 percent YoY. Net income for the quarter was up 31.7 percent YoY.
The company said its sales target for this year is 4.794 trillion won, operating profit of 318.5 billion won and net income of 384.3 billion won.
Details by sector show that the civil engineering business posted 686.2 billion won in sales during Q3, the architectural sector reported 1.3 trillion won, the plant sector reported 429.4 billion won, the overseas sector posted 356 billion won, and others including rental revenues recorded 15.7 billion won, the company said.
This year, the company aims to win new project orders worth 6.65 trillion won, including 3.74 trillion won in the architectural sector and 1.63 billion won in the civil engineering sector with a backlog of orders totaling 14.024 trillion won by the end of this year.
In the areas of new projects for this year, the company won an order for a crude oil transfer facility construction project worth $260 million from the Kuwait Oil Co. On June 5, Daelim Vice President Kim Yoon and Chairman Al-Zan Ki of Kuwait Oil Co. signed the formal contract in Kuwait City in the presence of Korean Ambassador Song Ho-kun.
The project will replace the old 60 km oil pipeline, connecting the south oil storage tank to the north storage tank in Magwa, Kuwait, the company said.
This year alone, Daelim won a total of $2.12 billion worth of contracts for overseas plants, the largest on record, so far, in the Middle East and Southeast Asia. The orders include a $1 billion contract for the construction of a petrochemical plant in Kayan, Saudi Arabia, in February, and a $700 million contract for the construction of an oil refinery plant in Ispahan, Iran, in March.
Iraqi Prime Minister Nuri al-Malaki, during a dinner hosted by Mayor of Busan Hur Nam-sik at the Westin-Chosun Hotel in Busan, said he invites Korean construction companies to undertake reconstruction projects in his country, devastated by war. He said he would offer active support to Korean companies to join the reconstruction of Iraq, adding that there are many opportunities for Korean businesses in the construction sector, such as roads and bridges, because the country has many areas to be rebuilt.
In response, Korean company heads at the dinner said they have vast experience working in the Middle East, with excellent human resources and technologies, offering Iraq their assistance in reconstruction.
Daelim led a consortium to win the project to build a bridge connecting Myodo and Gwangyang from the Yeosu National Grade Penetration Roads of the Office of Supply in South Jeolla Province as both designer and builder. Included in the consortium are Hyundai and SK construction companies.
The bridge is to be completed by June 2012, coinciding with the Yeosu Expo 2012 (should the city be selected to host the event), stretching for 2,260 meters with a 1,545-meter span between the main columns. It will be the longest suspension bridge in the world when completed, following Japan's Akashi Bridge at 1,991 meters long and Denmark's Great Belt Bridge at 1,624 meters long.
Daelim won an order to build a polycarbonate plant construction project from Saudi Kayan Petrochemical Co. in Saudi Arabia. The $10 billion project is to be completed by 2010 and is the largest such project ever. The plant, to be located in the Al Jubail Industrial Complex, will produce 260,000 tons of durable engineering plastic and polycarbonate annually.
Daelim, in accordance with the letter of award, will take charge of engineering, procurement service and construction management service under a lump-sum turnkey basis.
The company is presently building a polycarbonate manufacturing plant with an annual production capacity of 65,000 tons for Honam Petrochemical Corp. Daelim has already completed polycarbonate production plants under contracts with Samyang Co. and Korea Kumho Petrochemical Co.
The company is working on two projects in Al Jubail in Saudi Arabia. One is a plant for propane dehydrogenation, to produce polypropylene (450,000 tons/year), commissioned by Sahara & Basell Co. The other project is the construction of a utilities plant to produce polypropylene (500,000 tons/year) by Ibn Zahr Co.
Daelim is a diversified construction company engaged in many areas of construction such as housing, civil works and plants.
The company's motto is to create the space of advanced intelligence for the age of knowledge and information. It has constructed a number of office buildings since it introduced the aluminum curtain wall technology to the Korean construction industry for the Hanil Bank headquarters project in 1981.
Daelim's expertise in specialty construction of cultural and assembly facilities is widely renowned. It has constructed a number of monumental architectural works including the Independence Hall, the Sejong Performing Arts Center, the Namsan Children's Center, the Gunpo Citizens's Hall and the District Sports & Arts Center of Jung Ward in Seoul.
Daelim is currently in the process of constructing the KBS Media Center and Suseong Culture & Arts Center, which are to become the nation's No. 1 destination for media and cultural activities.
The company has also been busy building a number of landmark commercial buildings in the country including the Guri Agricultural and Fishery Wholesale Market, with a floor space of 50,000-pyeong; the Busan Neospo, the biggest early-morning market in Yeongnam; the Gyeongju Joseon Hotel with 300 rooms; the Gyeongju Kolon Hotel with 313 rooms; and the Daejeon Dongyang Department Store in Daejeon's central district.
Abroad, the company built up its reputation as one of the most experienced builders in the world as it has successfully constructed a number of monumental structures in the world including the U.S. Embassy building in Bangladesh and the General Organization for Social Insurance building in Saudi Arabia.
Construction is said to have changed the map of Korea and Daelim has been in the center of the change, participating in the construction of expressways, airports, bridges, railroads, subways, dams, harbors and marine facilities at home and abroad.
The company had a hand in the construction of the nation's first expressway linking Seoul and Incheon, the Seoul-Busan Expressway, and the Yeongdong Expressway, to name a few. The company also built airports around the country, such as those in Suwon, Gangneung and Mokpo.
The company also took part in building many bridges both at home and abroad. Its overseas projects included the construction of the Ayer Rajah Expressway in Singapore, the Zahra Motorway in Kuwait, the King Fahad Int'l Airport in Saudi Arabia and the Sandakan Airport in Malaysia.
The company also built quite a few bridges at home and abroad including the Yeosu Dolsan Bridge, the nation's first cable-stayed bridge, the Gosu Bridge, the nation's first truss bridge and the Seonam Bridge, the nation's longest bridge connecting islands. The Seohae Bridge is the nation's longest cable-stayed bridge (7.3 km) that can resist wind with a speed of up to 65 km/sec and an earthquake up to 6 on the Richter scale.
The company also built subways, railroads and tunnels at home and overseas. It participated in the construction of practically all subways built in Seoul and railroads in the country. The Incheon Int'l Airport and the Seoul Metropolitan Railways Lines 1-5, 7 and 9 are good examples of Daelim's extraordinary construction expertise accumulated through its long years in the business. nw

Chairman Lee Yong-koo of Daelim Industrial Co.