SK E&C signs deal with China's largest builder

SK E&C CEO Choi Gwang-cheol, third from left, and CSCEC Chairman Guan Qing, fourth from left, pose after signing an MOU in Beijing this month. / Courtesy of SK E&C

By Park Jin-hai

SK Engineering & Construction (SK E&C) has signed a strategic partnership with China’s largest builder the China State Construction Engineering Corporation CSCEC, SK said Sunday.

Earlier this month, SK E&C signed a memorandum of understanding (MOU) with CSCEC for a comprehensive and strategic partnership on overseas projects.

With SK E&C CEO Choi Gwang-cheol and CSCEC Chairman Guan Qing present, the MOU signing ceremony was held at the CSCEC headquarters in Beijing.

The companies agreed to cooperate in their major area of businesses, such as the petrochemical, power and railway sectors.

The deep-pocketed CSCEC and SK E&C will participate in overseas investment development projects in China and elsewhere, the company said.

“The latest MOU, in particular, has laid important groundwork for us to make inroads into the global infrastructure construction market including the Asian Infrastructure Investment Bank (AIIB) projects and China’s One Belt, One Road projects,” a company spokesman said.

The CSCEC is China’s largest builder, ranked 37th in the Fortune Global 500 list this year. It is also the second-largest global construction company, according to U.S.-based Engineering News-Record Magazine (ENR).

The company posted $131 billion (155 trillion won) in projects in 2014, employing about 150,000 people.

“SK E&C has been constantly with the CSCEC. With the latest MOU, we are planning to strengthen the strategic partnership further, speeding up cooperation in such fields of independent power producer projects, public private partnership projects and entering into new markets,” said SK E&C CEO Choi Gwang-cheol.