A strong player in Saudi Arabian Market, the construction and engineering company has obtained more than US$15 billion in projects there, including Yanbu refinery project worth over two trillion won
Having successfully constructed a variety of plants at home and abroad over the past several decades, Daelim has now secured top-class competitiveness in the engineering, procurement, and construction (EPC) sectors. Based on its success, Daelim will actively penetrate new markets and power plant-related businesses and develop them as its major future growth engines.
For this to happen, Daelim created a power and industry (P&I) department in 2011, which is fully responsible for entering markets related to power plants and environmental and industrial equipment.
Last year, Daelim achieved a record 6 trillion won in overseas contracts, thanks to projects to build mega-sized oil refining and power plants in Southeast Asia and the Middle East worth more than 1 trillion won. This year, Daelim has set the goal of achieving 8.1 trillion won in overseas contracts by focusing all of its capabilities on winning projects related to plants and civil engineering.
Daelim is distinguishing itself in Saudi Arabia, the largest Middle East market and one well-known for requiring the strictest and most thorough process controls and construction qualifications. In Saudi Arabia, Daelim was awarded a project last year to build a combined-cycle plant named Shoaiba Ⅱ worth US$1.2 billion, as well as winning a contract this year to construct a synthetic rubber plant worth US$710 million. As a result, Daelim has won projects worth more than US$15 billion in Saudi Arabia. Daelim is currently carrying out construction activities in 9 locations in Saudi Arabia, with construction costs amounting to US$7.3 billion.
Daelim’s plant business capabilities, which cover everything from construction to trial operations, have reached an international level after it obtained the RTIP MFC & Chemical II project awarded by Sadara Chemical, a joint venture established by ARAMCO and DOW Chemical. Since this project is to build the world’s largest petrochemical production complex in Jubail Industrial City in Saudi Arabia, Daelim has, in fact, won all five process unit orders during the initial stage of the Ras Tanura Integrated Project (RTIP), and which are worth approximately 2 trillion won.
One example that reveals client confidence in Daelim’s technical abilities is Saudi Arabia’s high-density polyethylene (HDPE) plant, which was awarded to the company in 2008. Saudi Kayan requested Daelim take on the construction of the HDPE plant, which has an annual capacity of 400,000 tons, and which was originally awarded to a Chinese constructor. Saudi Kayan explained that only Daelim could meet its demands regarding construction deadlines and technical features. Daelim obtained the project as a special appointment contract and successfully completed it in 2011, thus living up to the client’s expectations.
The IBN Zahr Utilities & Offsite Project is another example. The undertaking to establish a polypropylene production plant and auxiliary facilities in the Al Jubail Complex was chosen as the project of the year in 2008 by Saudi Basic Industries Corporation (SABIC), a state-owned enterprise from the Middle East nation, due to its excellent project management and swift progress. In addition, Daelim applied completely new production technology to the Saudi Kayan Polycarbonate Project, which was also carried out in the Al Jubail Complex, and which boosted the stability, eco-friendliness, and energy efficiency of manufacturing processes.
Building on such accomplishments, Daelim won a 2 trillion won contract to build the Yanbu refinery project in Saudi Arabia. Industry insiders are forecasting that the corporation will continue to obtain additional plant projects there.
Last year, Daelim won a 200-megawatt coal-fired power station project (SM 200) in the Philippines. The company is distinguishing itself in overseas power plant markets this year by obtaining a project to construct crude oil and gas pipeline remote control systems worth 222.8 billion won in Kuwait and two coal-fired power stations worth US$1.2 billion in Vietnam. With the recent success of winning the Shoaiba Ⅱ project, Daelim has been evaluated as a company that has successfully transformed existing price-focused competitions into differentiated technology-based ones.