Samsung Engineering has received a 740 billion won (US$692.56 million) deal to build a chemical plant in Saudi Arabia. This is the first large project won by the company after new president Choi Sung-an took office.
Samsung Engineering announced on December 28 that it signed an engineering, procurement and construction (EPC) contract with Jubail United Petrochemical Company (JUPC), an affiliate of Saudi Arabia’s state-run chemical firm SABIC, for “united ethylene oxide–ethylene glycol (EO/EG) II project” in Saudi Arabia. The project is worth 739.1 billion won (US$692.37 million) in total, including 419.2 billion won (US$392.69 million) for the headquarters and 319.9 billion won (US$299.67 million) for the local subsidiary. President Choi Sung-an, who took office on the 13th of this month, personally signed the contract with JUPC President Abdullah al-Shamrani in Jubail, Saudi Arabia, on the 27th (local time).
Under the agreement, Samsung Engineering will build a plant that is capable of producing 700,000 tons of monoethylene glycol per year in the Jubail Industrial Complex on the northeastern coast of Saudi Arabia. Ethylene glycol is a petrochemical product that is used as car antifreeze and the final product by reprocessing ethylene oxide gained from processing ethylene.
With the latest deal, Samsung Engineering has strengthened its business tie-up with SABIC. JUPC currently operates the ethylene plant and the EO/EG plant in the Jubail Industrial Complex, including the latest project. The company also posted 8.4 trillion won (US$7.87 billion) in the cumulative amount of orders received in 2017. The figure is 69 percent higher than 5 trillion won (US$4.68 billion) of last year.