POSCO Engineering & Construction Co. signed a $400 million (415.8 billion won) contract for a steelmaking and rolling mill plant with Sun Metals LLC in Oman on Nov. 24.
Attending the contract signing ceremony at the company building in Songdo were the director of Sun Metals LLC, the ordering entity Sivarajan, the project coordinator, the president of Sojitz Machinery Sako along with the vice president of POSCO E&C An Byung-sik.
The steelmaking and rolling plant will be constructed with the capacity to manufacture 2.5 million tons of billet, steel bar and special steel, and the construction period will be 30 months from the effective date of the contract. As the construction site is Sur industrial complex in the northeast of Oman, the project will be carried out with the support of the Oman government.
POSCO E&C is the world’s only construction company that can manage the whole construction process of an integrated still under a PEPCOM arrangement. This steelmaking and rolling plant project in Oman will be undertaken under PEPCOM, which is one step more advanced from simple EPS.
PEPCOM refers to project execution en bloc throughout the entire project cycle, including project planning, engineering, procurement, construction and operation and maintenance.
It is expected that this project contract of POSCO E&C will allow not only POSCO E&C, but also other domestic construction companies, to extend their steel plant projects in the Middle East. It has been difficult to capitalize on opportunities to enter into contracts with organizations in the Middle East due to the main ordering organizations in the steel market in the Middle East preferring to make contracts with advanced construction companies in Europe. However, POSCO E&C now expects more orders for follow-up projects as the ordering entity, Sun Metals LLC, plans to expand its steel mills.
In the meantime, POSCO E&C said it held a ceremony at its Songdo office in Incheon on Dec. 1 to celebrate its 20th anniversary. Over 300 officers and employees were in attendance, including President & CEO Hwang Tae-hyun.
"Everyone thinks they can see the future, but only those who are prepared can actually do it," Hwang said. "We must consolidate our spirit of challenge, ownership and our passion and capability focused on the power of execution to move rapidly into the areas we want to be."
He also underscored that the company needs to expand its entries into the global market to more sustainably win contracts so it can grow reliably in the global market. Hwang emphasized that POSCO E&C must secure the highest EPC competitiveness in Korea by differentiating its capabilities in technologies, costs and engineering.
The company plans to raise its economic added values in part by improving its financial structure and conducting thorough cash flow management.
Meanwhile, the company is seeking to advance its power of execution and competitiveness to win contracts by conducting proactive risk management for each of its business units, and invest in technological development. Those things will allow it to secure a long-term pipeline of new and innovative technologies to bring to market.
The day saw a particularly meaningful event held to celebrate the 20th anniversary of the company's foundation.
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