Daewoo builds plants in Morocco
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Seen is a picture of the Jorf Lasfar-5 and Jorf Lasfar-6 thermal power plants currently under construction by Daewoo E&C in Morocco, taken last November. / Courtesy of Daewoo E&C
By Cho Mu-hyun
Daewoo Engineering & Construction (Daewoo E&C) is taking part in two plant projects in Morocco for the first time for a Korean firm in the untapped market.
The company won the orders to take part in extending a thermal power plant complex and building a separate fertilizer factory.
It won the order for the Jorf Lasfar Power Plant Extension Project in 2010, and is taking part in building new fifth and sixth plants. The project is worth $1.2 billion.
The plants are located 140 kilometers southwest of Casablanca, at the Jorf Lasfar commercial port. The order was from the state-run Jorf Lasfar Energy Company, which also manages the two plants’ four predecessors. The plants are called Jorf Lasfar-5 and -6.
“We won the order over many world renowned plant-makers thanks to our track record of making nuclear reactors, which need advanced technology, and thermal, hydro and tidal power plants,” said a Daewoo official.
The contract for engineering, procurement and construction (EPC) started in October, 2010, and is expected to take 43 months.
Thanks to its increased brand recognition in the North African nation, Daewoo also clinched an order to build two fertilizer plants.
The plants, also at Jorf Lasfar, will produce phosphates used to make fertilizers.
OCP, the state-run phosphate company, originally planned to divide the plant project into four packages, with each managed by different plant-makers. But after being convinced of Daewoo’s capabilities, it gave all four packages to the Korean firm.
Morocco has the largest phosphate stockpile in the world, and is ranked third globally in production capacity. The country plans to double its facilities and production prowess by 2020, giving many possibilities for future orders for Daewoo.
The Korean engineering giant has already taken part in a total of $15 billion worth of projects in North Africa, the largest amount among its compatriots.
Daewoo plans to bid for future engineering and oil, and gas processor projects, and use Morocco as a bridge to expand into Libya, Algeria and other countries in the region.
According to Daewoo, it built 25 percent of power plants locally, and backed by that experience, has chosen its thermal power generator skills to expand globally.
For power plants alone, it has won 19 projects worth $6 billion so far in the Middle East, Asia and Africa. Six of the projects were for large thermal power plants.