Accumulates a Total of US$14 billion Through Foreign Contracts
[17 February, 2014] Hanwha Engineering and Construction("E&C"), headed by President and CEO Lee Keun-Po, signed the contract, on February 5th, for the construction of a phosphoric acid production plant in Saudi Arabia. The contract, awarded by Ma’aden and others, is worth US$935 million.
The signing ceremony was held at the Umm Wu'al Project site in northern Saudi Arabia. 600 people, including Lee Keun-Po, President & CEO of Hanwha E&C, Khalid bin Saleh Al-Mudaifer, President of Ma’aden, Mohamed H Al-Mady, Vice President of Sabic, and James T. Prokopanko, President of Mosaic, were all attendees at the event.
Hanwha’s construction project involves building a phosphoric acid production plant in Umm Wu’al, the border region between northern Saudi Arabia, Jordan and Iraq. The contract was established in the form of an EPC (EngineeringㆍProcurementㆍConstruction)-LSTK (Lump-sum Turnkey), which includes all processes from designing, buying, to constructing.
The project is part of the next-generation business development plans promoted by Saudi King, Abdullah. It consists of constructing facilities for mining, ore dressing and acid production in Umm Wu’al and facilities for fertilizer production in Ras Al Khair that use raw materials produced in Umm Wu’al. Project expenses totaled approximately US$6.67 billion. The owners consist of Ma’aden, Saudi Arabia’s state-owned mining company, Mosaic, along with the world’s largest phosphoric fertilizer producer based in the USA as well as SABIC, Saudi Arabia’s public enterprise for petrol & chemicals manufacture. Top firms in the industry with the technology and industry know-how participated and signed contracts in the EPC format. The firms included Daelim Industrial from South Korea, Intecsa from Spain, HQCEC
and SINOPEC from China, and SNC Lavalin from Canada.
The project won by Hanwha E&C is the largest one among the 9 construction zones, valued at US$935 million. Hanwha E&C will construct a phosphoric acid plant, which is an essential facility needed to proceed with constructing the facilities that produce phosphoric acid and fertilizer. Total construction period is set for approximately 33 months, and the project is expected to be completed in the second half of 2016. When completed, the plant facility will produce 1.5 million tons of phosphoric acid
“This contract is the result of Hanwha E&C’s successful completion of past projects in the Middle East region, as well as an accomplishment recognizing our know-how concerning this project,” said Lee Keun-Po, President & CEO of Hanwha E&C. “Hanwha E&C is planning to become a global construction company with a foreign sales ratio of 65% by the year 2015.”
Hanwha E&C’s overseas sales have increased steadily since 2007. In 2013, overseas sales accounted for 44% (US$1.68 billion) of total sales (US$3.73 billion). With the $935 million contract with Ma’aden, Hanwha reached a record total of US$14 billion for foreign contracts.
Saudi Project Outline
• Name: Umm Wu’al EPC Project - Phosphoric Acid Plant (PAP) / EPC LSTK
• Location: Umm Wu’al, Saudi Arabia
• Amount: US$935 million
• Client: JV of Ma’aden/MOSAIC/SABIC (60:25:15)
• Contract Type: EPC Turn-key Contract
For more information:
- Jang Hanee
- Hanwha Engineering & Construction
- Tel: +82 (0)2 729 5028
- Email: email@example.com
Hanwha Engineering & Construction
Capitalizing on extensive experience and technologies gained over the course of numerous construction projects, Hanwha E&C has been rapidly growing into a global player at an annual average growth rate of 20% since 2002. Our competitiveness is internationally recognized, ranking 72nd on the list of Global Contractors announced by the international construction magazine Engineering News Record (ENR) in 2014. Our goal is to become a world-renowned construction company by 2020 with our “Design the World” vision.
For more information, visit: www.hwenc.com
Hanwha Group, founded in 1952, is one of the Top-Ten business enterprises in South Korea
and a “FORTUNE Global 500” company. Hanwha Group has 56 domestic affiliates and 226 global networks in three major sectors: manufacturing and construction, finance, and services and leisure.
With more than 60 years track record of industrial leadership, Hanwha’s manufacturing and construction businesses encompass a broad range of fields from chemicals & materials, aerospace & mechatronics, total solar energy solutions, and global construction. The finance network, covering insurance, asset management and securities, is the second largest non-bank financial group in South Korea. The services and leisure sector offers premium lifestyle services with retail and resort businesses.
For more information, visit: www.hanwha.com