Construction Alliance
SK Engineering & Construction (SK E&C) announced on Dec. 16 that it signed a memorandum of understanding (MOU) on Dec. 15 with the China State Construction Engineering Corporation (CSCEC), China’s largest state-run construction company for a comprehensive and strategic partnership in overseas projects and the major business sectors of the two companies.
SK E&C CEO Choi Gwang-chul and the CSCEC Chairman Guan Qing attended the MOU signing ceremony held at the CSCEC headquarters in Beijing, China. The two companies agreed to cooperate in overseas projects in their major businesses, such as the petrochemical, power and railway sectors.
Under the MOU, SK E&C will actively participate in overseas investment development projects in the global market as well as in China in the future, in partnership with the CSCEC, which has an ability of financing. With the latest MOU, particularly, the company has laid important groundwork to push into the global infrastructure construction market such as projects of the Asian Infrastructure Investment Bank (AIIB) and China’s One Belt, One Road project.
The CSCEC is China’s largest construction company, which ranked 37th in the Fortune Global 500 list this year and took second place in the contractors rankings released by U.S.-based Engineering News-Record Magazine (ENR). The company posted US$131 billion (155 trillion won) in sales in 2014 and had 150,000 employees.
SK E&C CEO Choi Gwang-chul said, “SK E&C has been constantly cooperating in international projects with the CSCEC. With the latest MOU, we are planning to strengthen the strategic partnership further, including the joint development in independent power producer (IPP) projects and public private partnership projects (PPP) and market expansion into new countries.