Source: Samsung Engineering
Samsung Engineering reported that the company officially signed a contract for a US $411 million chlor-alkali plant with Dow-Mitsui Chlor-Alkali LLC, a joint-venture comprised of Dow Chemical (USA) (NYSE:DOW) and Mitsui (Japan).
The signing ceremony was held in Seoul, Korea and in attendance were several top executives from each company, including the CEO of Dow-Mitsui Todd A. Prey and President & CEO of Samsung Engineering Park Ki-Seok.
The chlor-alkali plant will be located in Freeport, Texas and will produce 816,000 tons of chlorine annually -- boasting the world's largest chlorine production facilities. The lump-sum turn-key contract is for Engineering, Procurement and Construction services and is scheduled for mechanical completion by January 2013.
The EPC contract is significant because Samsung Engineering is the first Korean contractor to enter the US plant market through competitive bidding. Also, it signifies Samsung Engineering's strengthening partnership with not only National Oil Companies (NOCs) but also International Oil Companies (IOCs).
Samsung Engineering's President & CEO Park Ki-Seok stated at the signing ceremony, "We have proven our technical and project management expertise in the Middle East market, and we will continue to do so by delivering a quality project, on-time and safely for our new partners. Through this new contract, I hope to create a long-term partnership with Dow Chemical and Mitsui, and hopefully it will also be a stepping stone to other projects in North, South and Central America."
In 2008, Samsung Engineering established its North American office in Houston, Texas to reinforce its engineering capability and assist business diversification into North America. Samsung Engineering has several other global business operations in countries such as India, Saudi Arabia and Mexico.