SK Construction Thrives in M. East
By Jane Han
Staff Reporter
Sometimes, it's tough to grasp the scale of the work some of Korea's major companies are executing overseas. SK Engineering & Construction, a leader builder, is one of those mega-deal winners at the core of the Middle East's construction spree.
Its most recent record breaker was the $2.06 billion order for a plant construction in Kuwait.
In May, SK E&C, the construction arm of SK Group, received an exclusive order to build oil-refining facilities from the Kuwait National Petroleum Company (KNPC).
This giant project involves building facilities for Kuwait's fourth oil-refining factory that covers oil-refining processes, including recovery and compression of hydrogen, and the manufacture and recovery of sulfur.
The order won by SK E&C was part of a five-package project, which amounts to a total of about $8.3 billion. The remaining parts were won by other companies ― including many Koreans ― but SK E&C says it won the largest amount of orders among single bidders.
This helped beef up the amount of its overseas projects to more than $10 billion. Although the company has been building up its reputation overseas, the past four years have been the busiest, receiving more than $1 billion worth of orders during that time.
Much of this work has been done in Kuwait, as the crude-rich Persian Gulf state is considered one of the most lucrative markets for construction firms specializing in crude distillation and oil refining.
A $624 million project building a crude-oil gathering center in Kuwait is an example of another big-scale undertaking that started last year.
The assignment is to design and reconstruct a gathering center damaged during the Gulf War. A gathering center is a facility that separates crude oil and gas and then stores it before it is sent off to other facilities.
This deal was significant not only because of its size, but also because SK E&C beat six international companies competing for the project by the Kuwait Oil Company, a state-owned oil enterprise.
After SK E&C won, company president & CEO Yoo Woong-suk said, ``This deal not only illustrates SK E&C's reputation as a leader in plant construction, but also the company's growing stature as a preferred major construction partner for global industry players.''
Aside from Kuwait, SK E&C has also proved a solid track record in 16 other countries, including Thailand, India and Indonesia, for building world-class petrochemical plants, industrial plants, nuclear-power plants and chemical-power plants.
SK E&C says it aims at consistently reaping 100 billion won in annual sales until 2015, so that it can become a top-tier builder by then.
Yoo said, ``SK E&C will continue to pursue the major construction opportunities that deliver strong returns to shareholders and that enhance the company's position as a top-tier, global engineering and construction firm.''
Locally, the company is working to overhaul the traditional framework of apartments by presenting unconventional design ideas in its apartment branded ``SK View.''
Designs for large-scale housing units are being planned and implemented currently, and company officials say SK E&C's know-how and experience will help create a synergy effect both at home and abroad.