Korean Builders Land $2.8 Billion Deal in Saudi Arabia

Three Korean construction companies have won individual orders from Saudi Arabia amounting to US$2.8 billion. Samsung Engineering and Construction, Daelim Industrial, and SK Engineering signed separate deals in Dhahran on Tuesday local time with Saudi Aramco Total Refining to build a combined refinery and petrochemical plant complex. The complex is being built at Jubail Industrial City in the Eastern Province. The three firms will build separate portions of the complex.

The refiner is a joint venture between state-owned Saudi Aramco and French oil company Total. Samsung Engineering will build two plants for $1.6 billion to produce paraxylene and benzene, which are key components to manufacture polyester. Samsung will also build a $900 million plant that will convert around 100,000 barrels of asphalt daily into liquefied petroleum gas and other compounds.

Daelim Industrial will build a plant that collecting sulfur and removing acid gas from the refining process for $818 million. SK Engineering will construct a $420 million plant to supply water and electricity to the entire complex.

The deal marks the second overseas orders this year for Samsung Engineering and Daelim Industrial, and the sixth for SK.

Arirang News / Jul. 09, 2009 12:15 KST