Ssangyong E&C wins $250 million deal in Singapore
By Lee Hyo-sik
Ssangyong Engineering & Construction (E&C) said Tuesday that it has won a $252 million contract to construct a subway line in Singapore.
The deal is expected to further strengthen Ssangyong’s presence in the city-state in which the firm has been building schools, hotels, hospitals and other infrastructure over the years.
To bid for the construction project, the builder formed a consortium with Hyundai Engineering & Construction. Ssangyong has a 75 percent stake in the project and Hyundai 25 percent.
Ssangyong will build the section of the Thomson East Coast Line that crosses Singapore from north to south. It will also construct the Marine Terrace Station and excavate two tunnels underneath apartment complexes and other urban structures.
The project, which is to lay a 1.78 kilometer subway track, is expected to take eight years to complete.
“There were other bidders who offered lower prices for the project. However, Singapore’s Land Transport Authority (LTA) picked us,” a Ssangyong E&C spokesman said. “This shows we have earned a great deal of trust for our engineering and project management capabilities. The latest deal is also significant that we are cooperating with our rival, Hyundai E&C, rather than compete, to create a win-win solution.”
Ssangyong has been involved in a series of subway construction projects in Singapore over the past few years, the spokesman said.
“We have always met the deadlines and successfully completed the projects without causing a single industrial accident. We have formed a strong partnership with the LTA and private sector customers,” he said.
The latest deal came a month after Ssangyong was awarded three contracts worth $1.6 billion in Dubai, the United Arab Emirates. This has provided a much-needed boost to the builder, which was acquired by the Investment Corporation of Dubai (ICD) early last year.
In January 2015, the ICD, which has nearly $200 billion under its management, acquired a controlling stake in Ssangyong E&C.
The ICD is one of the world’s largest sovereign funds and has 30 companies under its control, including Emirates Airline and Emirates National Oil Company.
The ICD’s ownership has been widely expected to help Ssangyong secure more lucrative deals in Asia and the Middle East.