Daelim leads in power plant construction

This is a high-density polyethylene plant in Saudi Arabia, completed by Daelim Industrial in December 2010. / Courtesy of Daelim Industrial

By Lee Hyo-sik

Daelim Industrial, one of Korea’s major builders, has emerged as a global leader in power plant construction and management, thanks to its advanced technological knowhow and extensive experience. For years, the builder has constructed dozens of thermal, hydro and nuclear power generation plants both at home and abroad, becoming one of the world’s top engineering procurement construction (EPC) firms.

It is now seeking to foster gas to liquids, carbon capture and storage, offshore wind power generation and other environment-friendly, high value-added technologies as its new growth engine.

``We have been able to secure a large number of orders for building power generation facilities around the world. We are one of the few comprehensive EPC companies in the field,’’ a Daelim Industrial spokesman said.

In May, the builder won a $710 million contract to construct a thermal power plant in Vietnam. Under the deal, Daelim will not only build the facility, but also design and test-run it, indicating it has become a comprehensive project manager in the power plant sector.

In October 2011, it secured a $1.2 billion order to create a large-scale thermal power generation facility in Saudi Arabia, seven months after winning a deal to build a coal-powered electricity generation plant in the Philippines.

Daelim has also advanced into a private electric generation sector here for a new source of revenue. In December 2010, the builder won a 1-billion won contract to create two thermal power plants in Pocheon, Gyeonggi Province, capable of generating 1,560 megawatts of electricity.

Through the deal, the firm is expected to gain much-needed knowhow on the operation and management of power plants. ``We will not only design and build the facilities, but also sell power to Korea Electric Power Corp. (KEPCO). This project will significantly help us become a power plant EPC entity and win similar deals abroad,’’ the spokesman said.

As a new growth engine, Daelim has been looking to enter the offshore wind power generation sector. In May 2011, it signed a memorandum of understanding with KEPCO Engineering & Construction to build wind mills off Jeju Island.

``In a bid to adjust to the shifting industrial paradigm toward a low-carbon and green growth, we would like to gain technological knowhow and experience as quickly as possible concerning the construction of wind power generation plants in the sea,’’ the spokesman said. ``So we can enter Europe and North America where demand for carbon-free power generation is high. We expect Asia will soon join the bandwagon, presenting us a lucrative business opportunity.’’

Daelim secured a total of 20 constriction orders worth $6 billion abroad in 2011. Among other countries, it is currently undertaking 8 projects valued at $6.5 billion in Saudi Arabia.

``Since we entered the Middle Eastern nation in 1973, we have carried out dozens of construction schemes mostly building oil and gas plants. We have built a great deal of mutual trust with officials of the Saudi government and state enterprises over the years. On top of this extensive human network, our advanced technological know-how and sound workmanship have made it possible for us to secure multiple deals,’’ the company said.

Among other multibillion-dollar deals, Daelim secured a $1.9 billion contract to construct a refinery in Yanbu, Saudi Arabia, in July 2011.

Daelim is Korea’s first builder making inroads into overseas markets. In January 1966, it won an $877,000 order to construct a sea port in Vietnam.