Daelim Shoots for Record Orders

Builder aims to snag 13.7 tln won in project orders, 880 bln won in operating profit up over 30 pct YoY

Daelim Industrial Co. saw its operating profit in 2011 rise 88.4 percent YoY, hitting 582.4 billion won, with annual sales rising 13.3 percent to 7.18 trillion won and net profit jumping 97.9 percent to 433.6 billion won, the company announced recently.
The announcement also said the company was able to secure 10.73 trillion won in new construction project orders at home and overseas primarily in large oil refinery and power plant projects in the Middle East and Southeast Asia, a rise of 30.8 percent YoY, breaking the 10 trillion won level for project orders in a year for the first time in its history.
A key official of the company said the performance record is the result of the company's strategy to expand both its scale of business and increase its profit at the same time through steadfast cost management of its overseas plant construction projects. He continued that the company was able to reduce its guarantee for project financing to the 1.1 trillion won level last year from 2 trillion won in 2010, and net borrowing was also cut to 324 billion won from 472.9 billion won.
Daelim Industrial aims to secure 13.7 trillion won in new project orders mostly in plant and civil projects from Saudi Arabia and Kuwait, countries where the company has been strong, and new markets with a sales target set at 9.44 trillion won and operating profit of 879 billion won, up more than 30 percent from last year, the company said.
The company announced that it received the Notice to Proceed (NTP) for the Petron Refinery Master Plan Phase 2 (RMP-2) project valued at about US$2 billion from the Philippines on Nov. 5, 2011. The RMP-2 project is a mammoth project to produce high value-added petroleum products by extensively modernizing existing refineries in Limay, Bataan, about 150 kilometers southwest of Manila.
Prior to receiving the NTP, Daelim conducted preliminary soft works including process integration, basic design engineering, procurement service and offshore procurement for the RMP-2 project. The NTP allows Daelim to independently carry out EPC business including detailed design & engineering, procurement and construction. This project will become a lump-sum, turnkey contract in November.
The Plant Business Division of Daelim Industrial received the NOA (Notice of Award) for a power plant construction project worth $1.22 billion in Saudi Arabia on Oct. 15, 2011, and the formal contract was concluded on Oct 29.
This project, which was ordered from Saudi Electricity Company, is to build power plants in a coastal area 100 kilometers southeast of Jeddah. Upon completion, the power plants are expected to contribute to the solution of the electric power shortage in the western area of the country by supplying approximately 1,200MW of electric power.
This is the first EPC lump-sum, turnkey project in Saudi Arabia for Daelim's power plant business division. According to the contract, Daelim will conduct all processes of basic and detailed design & engineering, procurement, construction, and commi-ssioning.
Daelim expects that this achievement will contribute to increasing its overseas power plant construction competitiveness. nw

A scene of the signing ceremony on Nov. 5, 2011 for the Petron Refinery Master Plan Phase 2 project in the Philippines as Daelim Industrial wins the project with Vice Chairman Lee Hae-wook and Vice Chairman Charles Y. Kim in attendance.