Samsung Engineering Secures Large-Scale Order Worth 4.5 Trillion KRW
[Asia Economy reporters Changhwan Lee and Dongwoo Lee] As the 'New Samsung' era under Samsung Electronics Vice Chairman Lee Jae-yong begins, Samsung Engineering has hit the largest 'order jackpot' in its history, signaling an acceleration in Lee's future management activities. Lee has returned to the company immediately after his father's funeral to personally oversee pressing matters, responding to numerous tasks including his own trials, setting Samsung's future management direction, large-scale investments, business trips, and executive personnel appointments.
On the 30th, according to Samsung, Samsung Engineering secured a refining project worth 4.5 trillion KRW from Mexico's state-owned oil company Pemex. The order amount of 4.5 trillion KRW accounts for 70% of Samsung Engineering's last year's sales of 6.4 trillion KRW, marking the largest order in the company's history. Among Samsung affiliates, this is the largest order since early last month when Samsung Electronics signed an 8 trillion KRW export contract for 5G communication equipment with Verizon, the world's number one telecommunications operator in the U.S.
Although Mexico is an oil-producing country, it imports petroleum due to a lack of refining facilities. With the urgent need to establish refining facilities, Samsung Engineering's acquisition of this large-scale related project has attracted significant attention even from the Mexican public.
Samsung Engineering explained that the success of this order was due to the linked strategy of Front-End Engineering Design (FEED) and Engineering, Procurement, and Construction (EPC). To secure high-quality marketing competitiveness and strengthen project execution capabilities, Samsung Engineering has steadily targeted the FEED sector based on its design technology competitiveness. FEED involves defining the overall framework of a plant, where design technology and experience are crucial.
Samsung Engineering emphasized that through the successful progress of FEED, it was able to secure the EPC order as well. The company won and executed the FEED for this project last year and has proactively carried out detailed design, major equipment procurement, and site foundation work to ensure smooth project progress.
The client's satisfaction with the successful execution of the first phase led to the second phase order. Samsung expects that the high project understanding gained through FEED execution will aid in the successful EPC execution going forward.
The partnership between the global oil company Pemex and Samsung Engineering is also noteworthy. Since the first order in 2000, Samsung Engineering has maintained its relationship with Pemex for 20 years, and with this order, it has accumulated a total of six projects worth 5.5 trillion KRW, building extensive 'Pemex experience.'
◆Samsung Electronics Vice Chairman Lee Jae-yong Returns to Work Immediately After Father's Funeral, Urgent Issue Resolution
Lee's return to management immediately after his father's funeral and the announcement of a large-scale order added significance to the situation. It was reported that Lee attended work normally at Samsung's Seocho office building on this day as well as the previous day.
The most urgent issue Lee must address is his trial. He is scheduled to appear at the so-called 'state affairs manipulation' case retrial on the 9th of next month. Legal circles expect this trial to proceed rapidly, possibly concluding with a verdict by the end of this year. In January next year, a trial related to allegations of illegal succession of management rights concerning the Samsung C&T and Cheil Industries merger will also begin.
There are also many urgent management issues. Samsung Electronics' 51st anniversary is on the 1st of next month, and attention is focused on whether Lee will deliver a message. Since the 1st is a holiday, this year's event will be held on the 2nd. Lee did not issue a separate message on previous anniversaries but delivered an exceptional video message last year on the 50th anniversary, urging to "create a '100-year company' to pass on to future generations through challenge, technology, and coexistence."
Recruitment is also a matter of interest. Lee has repeatedly pledged to create a large number of jobs. In this regard, Samsung will conduct the online job aptitude test (GSAT), the written exam for new hires in the second half of the year, over two days on the 31st and the 1st of next month. Additionally, business trips to Japan and Southeast Asia are planned for meetings with overseas business partners and affiliates, and year-end executive personnel appointments must also be prepared.
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