By Kim Tae-gyu
GS Engineering and Construction (E&C) is poised to take the wraps off an eco-friendly refinery in the United Arab Emirates where ultra-low-sulfur diesel will be produced.
The Seoul-headquartered contractor said Monday that it has already finished the construction of the green diesel project in Ruwais, 250 kilometers west of Abu Dhabi, and pilot runs are currently underway.
The futuristic plant includes such cutting-edge facilities as a vacuum distillation unit and hydro-cracking unit in order to pump out diesel with less than 10 parts per million (ppm) of sulfur.
``The demand for high-end fuel such as green diesel is on the rise as countries set regulations on its components across the world and the green diesel factory will meet this demand,’’ GS Senior Vice President Ahn Kuk-ki said.
``GS has proven technological prowess and diligence through the green diesel project. We will try our best to win follow-up construction orders, which are due in the Ruwais area.’’
Traditionally, European engineering giants have dominated most orders at the Ruwais industrial complex but GS E&C were able to distinguish itself through the green diesel project.
After GS E&C winning and successfully completing the $1.14 billion contract ordered by Takreer, a subsidiary of Abu Dhabi National Oil Company, Korean players could chalk up more opportunities there.
In particular, GS E&C garnered three mega-sized deals in Ruwais alone in 2009 to make its presence felt.
Such exploits helped GS diversify its business portfolio at a time when Korea’s construction business climate fizzled in the aftermath of the global financial crisis in the late 2000s.
For example, the builder’s domestic orders are expected to plummet from 7.38 trillion won in 2011 to 6.6 trillion won this year. But its global orders are likely to jump from 5.87 trillion won to 9.9 trillion over the period.
Overall, its total orders would jump 24.5 percent from 13.25 trillion won to 16.5 trillion won despite the sluggish market in Korea.
By 2020, the company strives to raise the proportion of overseas businesses in its turnover to 70 percent for annual sales of 27 trillion won and net profits of 2 trillion won.
Toward that end, the company has stated that its target areas are nuclear, desalination, liquefied natural gas and offshore plants.
GS E&C CEO Huh Myung-soo is also looking at markets abroad.
``As we continue to pursue global competency in our core business, GS E&C will continue its stable growth through systematic risk management and substantial management,’’ Huh said on the firm’s website.
GS E&C was established in 1969 as an affiliate of Lucky-Goldstar Group and has recorded solid growth thereafter to become one of the foremost constructors in the local market.
The company, which has sought of late for global expansion for its new locomotion for growth, gained the current title in 2005.