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Daelim Industrial enjoys strong trust from international contract awarders

SAUDI ARABIA

Thanks to its rich experience, cutting-edge technology prowess

Daelim Industrial enjoys strong trust from international contract awarders

Daelim Industrial, the world’s leading engineering, construction and petrochemical plant company in Korea, is deeply trusted by overseas major plant ordering organizations in recognition of its rich experiences in conducting projects in foreign countries and cutting-edge technology prowess.

For one thing, early in the morning of February 7, 2013, employees at Daelim Industrial and plant ordering companies cheered loudly when the last concrete pump truck finished concrete casting operation at the site of constructing the petrochemical complex in Sadara in Al-Jubail Industrial City, Saudi Arabia. The concrete pump truck successfully casted 5,000 cubic meters of concrete (equivalent to quantity of concrete needed for building a 25-story apartment with 150 households) for 19 hours continuously. This is the first success case in Saudi Arabia, and Arab News reported it as a rare example.

Saudi Kayan Polcarbonate Project, Saudi Arabia

At the site, managers at plant ordering companies, including Aramco, the state-run oil refinery company in Saudi Arabia, and Dow Chemical, the world’s largest chemical manufacturer, said, “We are astonished at Daelim’s wonderful achievement.” These companies have no experience in constructing a plant in this way, and they believed that it is impossible. Based on results of thorough survey and research, Daelim Industrial has constantly convinced ordering companies since December last year, and attempted the concrete casting work. Having prepared with sufficient equipment and manpower, the company could successfully complete the concrete casting job without discontinuation. Through this, Daelim Industrial could shorten construction period by over 3 months and a half, while reducing costs by more than $200,000. It also improved quality of the building by preventing cracks in concrete structure in this way.

Another example is the high density polyethylene (HDPE) plant project in 2008. Kayan in Saudi Arabia first concluded a contract with a construction company in China, but it later changed the contractor to Daelim Industrial for the HDPE plant project in the form of private contract because it believed that Daelim was the only company that could meet its criteria on construction period and technologies. Thus, Daelim Industrial successfully completed construction of the HDPE plant in 2011.

Having established its branch in Saudi Arabia in November 1973, Daelim Industrial won an order for the $160,000 project of installing boilers at an oil refinery plant from Aramco, marking the first plant export of Korea. Daelim Industrial conducted the project alone for the oil refinery plant constructed in Ras Tanura, the largest petrochemical product export port in the Middle East. In the following year, the company also received an order for the project of constructing naphtha and butane processing facilities in the same region. In the 1970s, Saudi Arabian people highly evaluated faithfulness and diligence of employees at Daelim Industrial saying, “They are holding a welding rod on right hand and bread on left hand.”

Since then, Daelim Industrial received orders for a large number of public projects from Saudi Arabia. They include Ghazlan thermal power plant, the first thermal power plant in Saudi Arabia, the office building of Aramco’s head office, a natural gas liquefaction plant in Yanbu, an oil refinery plant in Al-Jubail, a fertilizer plant in Al-Jubail, runway at King Fahd International Airport, King Fahd University of Petroleum and Minerals in Dhahran, public houses in Riyadh, and expansion of Navy Headquarters in Riyadh. In recognition of its excellent project management capability and ability to shorten construction period, the polypropylene plant and IBN Zahr Utilities & Offsite Project carried out by Daelim Industrial in the Al-Jubail Industrial City were selected as the top projects by SABIC in 2008. And the Saudi Kayan Polycarbonate Project conducted by the company in the same industrial complex was evaluated to have significantly improved stability in production processes, eco-friendliness and energy efficiency by adopting entirely new technology different from the conventional method of producing polycarbonate.

Daelim men at a Saudi Arabian work site

Based on such favorable evaluation, Daelim Industrial received the order for a project of constructing an oil refinery plant in Yanbu from Aramco in amount of 2 trillion won (approximately $1.8 billion). In October 2011, the company sealed a contract with Saudi Electricity Company for the project of constructing Saudi Shoaiba II Combined Cycle Power Plant on a lump-sum turnkey basis, amounting to $1.22 billion. As a project of building a 1,200MW combined cycle power plant on the coast in distance of 100 kilometers from Jeddah southeastward, the power plant will supply electric power to cities in western part of Saudi Arabia when its construction is completed in September 2014. And Daelim Industrial won an order from Ma’aden in this year for a project of constructing ammonia plant.

As of 2012, the company exceeded $15 billion in accumulated value of orders received from Saudi Arabia. And the company is currently carrying out 13 projects in that country in value of $8 billion. Total accumulated value of orders received by construction companies in Korea from Saudi Arabia exceeded $100 billion as of last year, and that received from other Middle East countries, such as the United Arab Emirates (UAE), Libya, Kuwait and Iran, reached $59.7 billion, $36.6 billion, $$27.4 billion and $11.9 billion, respectively. k

이경식 기자  edt@koreapost.com

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