February 23, 1998 in Social Responsibility News

SAMSUNG Engineering to Build US$200 million Petrochemical Plant in Egypt

CAIRO, Egypt - February 23, 1998 - Samsung Engineering Co., Ltd. (SECL) has won a US$200 million order from Sidi Kerir Petrochemicals Co. (SIDPEC), a government supported organization in Egypt, to build that nation's first linear low density polyethylene (LLDPE) plant. SECL President In-mo Yang and SIDPEC Chairman M. Salah Omar signed the contract for the project in Cairo on February 23.
The plant will be located near Alexandria, in the Nile Delta region and will be capable of producing 200,000 tons of LLDPE a year. The turnkesy project includes plant design, materials procurement, construction and test operation, and is scheduled for comspletion in July 2000.

Linear low density polyethylene is produced through the polymerization of ethylene and is used as a base material for making such items as plastic food wrap, plastic sheet for greenhouses and pipe covering to prevent rust.

Samsung Engineering is an "Approved Contractor" for using construction methods developed by British Petroleum and has ample experience in building LLDPE plants. As such, Samsung was able to participate in the project tender last April without having to first go through pre-qualification screening. Samsung won out in fierce competition with such major players as Lurgi (Germany) and Foster Wheeler (the US). Conditions for the project are highly favorable for Samsung, with financing being provided by SIDPEC. Thanks to its highly rated technology, Samsung managed to win the project in spite of the financial crisis in Korea.

Samsung Engineering has participated in Egyptian plant tenders twice and won both times. In June of last year, the state-run Khalda Petroleum Co. gave SECL a US$207 million order for a gas processing plant. These successes have positioned Samsung very well for making further advances into the Middle East market.

Samsung Engineering Co., Ltd., a member of the US$92.7 billion Korea-based Samsung Group, is exporting petrochemical plants and technology on a turnkey basis to such markets as Southeast Asia, Middle East and Latin America. The company's other main businesses include construction of environmental plants, refineries and gas plants. SECL also operates Environment Research and Development Center, which among other projects is developing technology for wastewater treatment and ethanol fuel production. Samsung Engineering employs 1,600 people and recorded sales of Won 1.07 trillion (US$650 million) in 1997.


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