Samsung, LG bid for Malaysian project
By Kim Yoo-chul
Korea’s electronics majors ― Samsung and LG ― have separately been bidding for an infrastructure project in Malaysia to get the upper hand in the promising market, according to officials from both companies, Monday.
But it is not likely to be easy for Korean players to win the contract as global rivals, such as Siemens, Alcatel-Lucent and Mitsubishi are also competing, officials said.
Samsung SDS, Samsung’s system solutions affiliate, said Monday that it was recently named as one of the pre-qualified firms to participate in the main bidding for Malaysia’s mass rapid transit (MRT) project.
The Malaysian government has received applications for the Sungai Buloh-Kajang MRT line from both local and foreign firms. This is the country’s largest infrastructure project to date, worth about $11.5 billion.
The project includes electric trains, depot work and equipment maintenance, signaling and train control systems and power supply and distribution systems. Samsung or LG would participate as a system solutions provider.
LG CNS, Samsung SDS’ biggest rival, was also named one of the preferred bidders, said LG CNS officials.
``The final announcement from the Malaysian government will come in the fourth quarter of this year. We will try our best,’’ said LG CNS chief spokesman Oh Sea-chun.
SDS and CNS declined to comment whether they have plans to form a consortium with local companies to bid for the railway project and upgrading of existing rail solutions projects, citing the sensitivity of the issue.
Korean firms are busy making ``goodwill gestures’’ to the Malaysian government by guaranteeing to hire more local workers and or transfer key technologies as they are desperate to win the contract, according to officials.
Malaysia is growing at a rapid pace and transportation is one of the areas that has been driving the growth. The hot topic in its Kuala Lumpur public transport area is the new Klang Valley (KV) MRT system linking Sungai Buloh to Kajang.
The KV MRT proposed alignment is a 51-kilometer MRT line consisting of 35 stations, according to officials who are familiar with the situation.
Samsung SDS has constructed AFC systems in the major Chinese cities of Guangzhou, Beijing, Wuhan, Tianjin and Cheungdu, as well as Bangalore, India, SDS said.
LG CNS has exported its solutions to New Zealand and Colombia.