Building a New Future with Strength

Leading builder celebrates 70th anniversary with operations in 24 countries

Daelim Industrial Co. is a world-renowned builder of factories around the world, especially petrochemical plants, since its first undertaking of an overseas project with Vietnam’s harbor construction project for OICC in 1966. In 1973, the company cracked open the construction market in Saudi Arabia with a project order to install a boiler at Aramco’s oil refinery worth $160,000, becoming the first Korean builder ever to undertake a construction project in the Middle East.
Following the successful completion of the boiler installation, construction projects started to roll in for the company; in June of that year, Daelim won a crude oil storage facility project from Aramco and in July, the company won a project to install the ninth boiler at an Aramco oil refinery as a result of Aramco’s recognition of Daelim’s construction skills.
In 1975, the company became the first Korean builder to enter Kuwait for construction projects by undertaking the repair of machinery at the Suwaiba oil refinery. In January of the same year, Daelim also advanced into the Iranian construction market by getting a project to build a military plant in Ispahan.













Daelim also won a project to build an oil refinery in South Africa in September 1975, making it the first Korean builder in Africa. The company has operations in 24 countries around the world and is engaged in a variety of construction projects including roads, plants, dams, harbors and public housing, among others.
Last year, the company clinched a project to build a polymer carbonate plant with an annual capacity of 26 tons, making it the largest in the world. The company also landed a project to build an oil refinery in Kuwait and a naptha cracking facility in the Philippines. The polypropylene plant project located in the Al Jubail Industrial Complex that Daelim won last year has been named the biggest one in Saudi Arabia by Sabic, the state-run company in charge of various industrial projects in the Middle East country.
On July 7, Daelim Industrial Co. signed a contract with Aramco of Saudi Arabia to build a large oil refinery, Aramco’s joint project with Total Oil of France, to be located in the Jubail Industrial Complex, the company announced recently.
The projected oil refinery, to be built at a cost of $10 billion, will be designed to refine 400,000 barrels of crude oil daily. Daelim got the order for the 2B package of the five-stage project for $820 million.
Presently, Daelim is engaged in a number of construction projects in the Jubail Industrial Complex, including one to build a polymer complex poly-carbonate plant and high-density plant as a result of Sabic Corp. recognizing Daelim’s highly regarded construction technologies for petrochemical plants.
In the meantime, Daelim also won an order from the Iran LNG Co. to build additional facilities for the Iranian company’s LNG plant, which will involve the construction of pipelines from the LNG/LPG tank to Jetty and supplementary facilities at a cost of 79.99 million euro, bringing the company’s total contract amount to 216 million euro. The order has put Daelim in a good position to win additional orders in connection with the project being undertaken, thanks to the recognition of Daelim’s superb construction technology for LNG plants by the project owner, National Iranian Oil Co., the state-run oil company in charge of all the petroleum business for the Iranian government.
These project orders from overseas are doubly significant for the company as it celebrates the 70th anniversary of its founding this year.
Since its establishment, Daelim, with its E&C and petrochemical groups, has been the flagship enterprise of the Daelim business conglomerate.
Now, Daelim is recognized as a global contractor with cutting-edge technologies and excellent management abilities, boasting a distinguished record of performance around the world.
With a top-notch staff of over 3,300 specialists, Daelim E&C group provides a comprehensive array of services including feasibility studies, project management, engineering, procurement, construction, commissioning & start-up, operation & maintenance and project financing. The fields covered by Daelim’s high-quality and cost-competitive services include gas, petroleum refining, chemical & petrochemical, power & energy plants, building & housing, civil works as well as a range of industrial facilities.
Daelim’s petrochemical group, as a driving-force within the Korean petrochemical industry, continues to provide a complete range of products from basic petrochemicals to highly functional value-added products.
President Kim Jong-in said the company “will build a new future with the strength of the past 70 years” in his message to the entire company and its affiliates at the start of the year. He said the company would face a difficult year as the economy is likely to remain stagnant amid the global economic crisis. However, he said, Daelim will proactively cope with rapidly changing market environments and steadily secure the platform for stable growth.
Given these conditions, the company will focus on stable growth based on fiscal soundness. The priority will be on “improving our financial stability by strengthening cash flow and securing the platform for stable growth in our business operations,” the CEO said.
He said the company must bolster its finances and fundamentally improve its cash flow by securing liquidity and reducing the number of unsold apartment units. This will allow us to overcome the chaos caused by the financial market’s instability and the housing market slump.
On the operations side, he said, Daelim will secure the foundation for steady growth by winning some of the major public contracts that the government will offer as an economic stimulus. However, he said he expected competition for overseas plant orders to be severe, given the very poor condition of the Korean housing market and the overall reduction in project opportunities, he said.
In the meantime, Daelim declared the pursuit of a ‘green construction’ environment management plan to reduce CO2 gas emissions and construction waste at its project sites at home and abroad under the new project site management system.
The company said it will adopt the new project management system at its Shindang “e-Convenient World” project site to reduce CO2 gas emissions and energy used at its offices by assigning specialists to carry out the company’s new project site management policy.
The jobsite offices will use high-degree heat resistant materials for interiors and paints that cut off sunlight reflection to minimize the loss of heat created by sunlight. They will also install solar-heated water tanks that can hold 300 liters of water each on the rooftops for use in the offices and toilets.
The company will also install wind and solar power generators that can produce 16 kwh of electricity to light offices and also install an air cleaning system using geothermal energy.
The company also plans to reduce CO2 emissions further by using solar power for security lights at jobsites and reuse rainwater. The company also plans to assign environment watchmen to its project sites to take care of issues related to cutting down on wastes from apartment construction sites under its “100 percent waste separation and collection operation plan” to make all of its project sites environmentally friendly.
Daelim was the first builder in the country to set up and operate R&D institutes to develop construction technology in March 1980. Currently, the company operates R&D institutes in Seoul, Yongin and Daejeon staffed by oiver 90 researchers all with masters and doctoral degrees. These research institutes took care of a total of 396 cases of research on construction technology and obtained intelligent property rights for 121 cases of research results, including 11 newly developed construction technologies.
The company plans to complete the development of “Eco-3L House” which needs the minimum energy for cooling and heating.
The renowned builder declared a roadmap for the development of environmentally friendly and low-carbon technology at its Yongin Technology Research Institute. The declaration included the introduction of the 3-liter house idea for the first time in the country. The application of the idea to a residential house for the first time in December, 2005. In September, 2006, the company applied the 3-liter house idea to a model house in Daejeon.
The company also experimented with solar and earth heat and other newly recycled energy. In April, 2008, Daelim experimented with e-convenient living system with the Ulsan apartments, built with such materials as new heat-resistant materials, along with highly-ducntional condensing boilers and triple-window glasses, among others. nw

Honorary Chairman Lee Joon-yong of Daelim Industrial Co.; Chairman Lee Yong-koo of Daelim Industrial Co. Officials of Daelim Industrial Co. and Aramco of Saudi Arabia, sign an agreement on an oil refinery construction project in Jabail Industrial Complex in Saudi Arabia, one of the many such projects that Daelim has been undertaking in the Middle East, including Iran, Kuwait and United Arab Emirates, among others.

A couple marval at solar energy panels and other facilities installed at Daelim’s “e-covenient world” apartments in Seoul.Daelim has declared the pursuit of a ‘green construction’ environment management plan to reduce CO2 gas emissions and construction waste at its project sites at home and abroad under the new project site management system.