POSCO Engineering & Construction Co. (POSCO E&C), an affiliate of South Korea's top steelmaker POSCO, said on March 11 that it has clinched a US$100 million (113.45 billion won) deal to build a combined heat and power plant in Mexico.
The company signed an agreement with Ener ABon March 6 (local time) to construct a 100-megawatt Quirey power plant in Coahuila, Mexico, to supply stable power to the Magnelec chemical plant nearby. POSCO E&C aims to complete the construction in 24 months from its commencement date.
Ener AB is a joint venture between U.S.-based power firm AES Corp. and Mexican firm Grupo Bal. AES currently operates power generation facilities in 18 countries across the world and has kept up business ties with POSCO E&C since 2006. Grupo Bal is one of Mexico’s conglomerates which run mining, trading and insurance businesses.
A spokesperson from POSCO E&C said, “The company advanced into the Latin American energy market in 2006 for the first time among domestic builders and its accumulated orders from the region topped US$10 billion (11.35 trillion won) in 13 years with the latest deal.”
Meanwhile, POSCO E&C won a 400 billion won (US$352.58 million) coal-fired power plant deal in Ventanas, Chile, in 2006, two other coal-fired power plant deals in Campiche and Angamous in the country in 2007 as well as combined cycle power plant deals in Kallpa and Chilca Uno, Peru, in 2009.