Top Korean builder grabs ammonia plant project order from Ma’aden, a major project owner, the 13th one for builder in the Middle East kingdom
Daelim Industrial Vice Chairman & CEO Charles Y. Kim (Photo: Daelim Industrial Co. Ltd.)
Daelim Industrial Co. Ltd. clinched an order to build an ammonia plant from Ma’aden Co. in Saudi Arabia, jointly with its subsidiary Daelim Saudi Arabia, worth $825 million on July 11. The projected plant will have the capacity to turn out 3,300 tons of ammonia daily with natural gas as the raw material, the company said on July 11.
Since it is a lump-sum turnkey project, the company will take care of all aspects of the project from design and purchase to construction and test runs, and the plant will be built on a location some 80 km southeast of Jubail, with a completion date slated for September 2016, just 39 months from now.
The ammonia plant is part of Saudi Arabia’s plan to build an industrial complex for mining and petrochemical plants in the Umm Wu’al region and the Ras Al Khair region in the border area along Saudi Arabia’s northwest. Ammonia is a raw material for chemical fertilizer and is lately being used in making cold medium, medical products, food condiments, and treatments for metal surfaces, making it a diverse petrochemical product.
Daelim got the order as a result of its capacity to undertake large projects and its technological prowess as shown through its long experience as a builder in many areas recognized by Saudi project owners. Saudi Arabia has been the largest construction project owner in the world and is therefore very critical in their final checkups on completed projects before making final payments, which means that foreign builders with extensive building experience would do well in securing projects in the country and elsewhere. Very few construction firms in the world have the technology and knowhow to build ammonia plants since it requires very sophisticated technologies and knowhow to build them because the products require very high safety standards and a very difficult production process. With the winning of the ammonia plant contract, Daelim now has 13 projects going on in Saudi Arabia worth over $8 billion.
President Lee Chul-kyun of Daelim Industrial said Daelim has proven once again that it has the capacity and construction knowhow by securing the project from Ma’aden, one of the major project owners in the Arab nation, along with Aramco and Sabic.
Boasting the longest history in the Korean construction industry, Daelim is a powerhouse and a global company that is actively engaged in business in all four corners of the world.
Founded as Burim Corporation in 1939, Daelim has been playing a pivotal role in Korea’s construction history, taking pride in the fact that Korea’s construction history is the history of Daelim.
It is not an exaggeration to say that most of Korea’s landmark construction projects have been completed with the help of Daelim including Korea’s artery road, the Gyeongbu Expressway; the Seoul Metropolitan Subway; the POSCO Headquarters, the National Assembly Building, the Seoul Olympic Main Stadium, Gwanghwamun Square, and the world’s fourth-longest Suspension Bridge.
Since Daelim became the first Korean construction firm to enter the overseas market when it landed a large project in Vietnam in 1966, it has played a pioneering role in penetrating overseas markets; thus setting records as the first company to secure foreign currencies from the overseas construction market, the first company to export plants overseas, and the first company to penetrate the Middle Eastern and African markets.
Daelim also played a pivotal role in driving the Middle East Construction boom with its 1974 venture into Saudi Arabia.
The success of major projects in Korea and abroad led Daelim to receive the Gold Tower Order of Industrial Service Merit and the $5 Billion Export Tower Award.
Both awards raised Daelim’s profile on the world stage. Starting with detailed design, Daelim has built a strong foundation as a plant specialist.