Its profound experience in plant construction is a key asset for the company’s winning huge plant projects in Saudi Arabia
Daelim Industrial Co. has been expanding its overseas projects rapidly since its total project orders exceeded 1 trillion won in 2006. Its Plant Business Department has been working overtime to achieve its vision, dubbed “Value Creating, Global Plant Builder,” by strengthening its capacity for global business operations by securing strategically valuable market intelligence based on thorough analyses of its own capacity, competitors, customers, and markets.
In particular, this year the coAmpany plans to focus its operations on securing highly profitable projects and focus its attention on finding future growth engines and the diversification of its products such as the construction of nuclear power plants and power generation, energy, environment, and industrial facilities.
In order to diversify its project portfolio, the company plans to strengthen its capacity to secure project orders in such traditional market countries as Kuwait and Saudi Arabia by taking advantage of its several decades-long operational experience in the Middle East by analyzing risks and market trends. The company will work on finding new growth engines overseas including energy generation and plant construction projects.
Daelim will advance into overseas plant construction markets using its experiences gained over the past several decades for building power plants and, if needed, the company will sign strategic tie-ups with foreign builders in undertaking large power plant construction projects to share risks while boosting profits, a key factor to making or breaking the company’s overseas operations.
The company signed a contract to build the Yanbu oil refinery construction project for 2 trillion won on July 28 last year at the head office of Aramco, the Saudi national oil company, which is the largest project secured by a Korean builder since 2010. The projected oil refinery, to be built in the Yanbu Industrial City in the western region of the Arab country, will be capable of producing 400,000 barrels of oil daily. Aramco issued orders in four packages requiring $10 billion in total funds.
Daelim clinched the EPC-3 and EPC-4 projects alone, including the construction of facilities for diesel, naptha, hydro-treater, and acid gas and sulfur recovery. The projects to be completed in May 2014 were based on an EPC lump-sum turnkey basis.
Vice Chairman Kim Yoon said Daelim won the projects based on its experiences and technologies for building oil refineries, winning high praise from the project owner. “This will be an opportunity to show off Korean builders’ superb skills and technologies for building such an industrial plant,” Kim said.
Daelim won a total of 6.4 trillion won worth of construction projects overseas in 2011, and this year the company is engaged in activities to win orders in a number of countries including Saudi Arabia, Kuwait, China, the Philippines, Singapore, and Vietnam °™ 20 projects total, with eight of them in Saudi Arabia, totaling $6.5 billion.
The company knows from its past experience that Saudi projects should be handled with extreme caution as it is the largest construction market in the region and the project owners are known to be very difficult in terms of assessing the qualifications of the bidders and following the progress of the work. This, however, results in ranking the construction firms that complete projects in Saudi Arabia as among the top builders in the world.
As if to prove Daelim’s outstanding construction record, the company won Sadara Chemical’s RTIP project, which is a part of its Petrochemical Complex, last July. The RTIP project is part of Saudi Arabia’s strategy to build the largest petrochemical complex in the Jubail Industrial Complex. Daelim won five early stage projects worth 2 trillion won with the Saudis recognizing the company’s technologies and building know-how to the extent that Daelim has been put in a position to be named as one of the most trusted partners for the Saudis.
Daelim has been lauded for its project management capability from having undertaken so many projects overseas. Its construction department takes care of the construction of plants and the petrochemical department takes charge of test-runs and operation, which make Daelim one of the strongest competitors in the construction business around the globe.