First Financial Support for Project in Malaysia
Korea Trade Insurance Corp. (K-SURE) announced on Dec. 19 that it would provide US$380 million to an oil refinery and petrochemical plant project in Malaysia.
The project is aimed at building a 300,000-barrel oil refinery and petrochemical plant in the Pengerang region in southeastern Malaysia. Aramco of Saudi Arabia and Petronas of Malaysia will carry out the project, which will cost US$14.9 billion in total.
Samsung Engineering and Samsung C&T landed two package contracts for the project worth US$900 million. The two Samsung subsidiaries will build production facilities for linear low density polyethylene (LLDPE) and ethylene glycol (EG). In particular, 99 small and medium-sized Korean equipment companies will supply 98.9 billion won worth of equipment to the Samsung consortium. “It is a good example of a win-win partnership between large companies and SMEs," a K-Sure official said.
"This is meaningful in that it is our first financial support for an oil refinery and petrochemical project in Malaysia which is the base for the government’s new southward policy," said Lee Do-yeol, chief of Korea Trade Insurance Corporation. “We will actively give financial support to Korean companies in winning more orders from the ASEAN market in the future."