Following last month's 4.5 trillion won-scale Mexico refining project, another trillion won-scale order secured this time
[Asia Economy Reporter Ki-min Lee] Following its recent win of a refining project worth approximately 4.5 trillion KRW in Mexico last month, Samsung Engineering has now secured a large-scale methanol plant project worth about 1.2 trillion KRW in Malaysia.
On the 30th, Samsung Engineering announced that it received a Letter of Intent (LOI) from Sarawak PetChem, a Malaysian petrochemical company, for the 'Malaysia Sarawak Methanol Project' contract.
The project, to be constructed in Bintulu, Sarawak state in eastern Malaysia, involves a plant producing 5,000 tons of methanol per day, with a contract value of approximately 1.2 trillion KRW. Samsung Engineering will independently carry out engineering, procurement, and construction (EPC) and plans to complete the project by 2023.
Samsung Engineering began participating in the project in early 2018 through the award of the Pre-FEED (Preliminary Front-End Engineering Design). In April last year, it also secured the FEED (Front-End Engineering Design) contract. Since November last year, Samsung Engineering has been performing early-stage tasks such as partial equipment procurement and initial construction work, and with the recent EPC award, it will now be involved throughout the entire project process. The company explained that its proactive sales strategy based on engineering technology, including recent FEED activities, has borne fruit.
Samsung Engineering has been striving to secure EPC projects through FEED execution over the past few years. Following the award of the largest refining plant in Mexico in the company's history last October through a linked FEED-EPC contract strategy, the company has now succeeded in converting the Sarawak project to EPC, achieving consecutive successes.
A company official stated, "We will successfully carry out the EPC business based on the strong trust we have built with the client and our deep understanding of the project through FEED execution," adding, "We will continue to expand high-quality orders through advanced-stage order-winning strategies."
Meanwhile, Samsung Engineering has been maintaining a winning streak in recent orders. Including this project, it has secured orders for the Mexican refining plant, a domestic bio plant, and a Hungarian battery foil plant, accumulating an order backlog exceeding 17 trillion KRW.
In particular, with the award of the Sarawak Methanol Project, Samsung Engineering's new orders have surpassed 9 trillion KRW. Accordingly, it is expected that the annual new order target of 10.5 trillion KRW will be achieved.
Samsung Engineering plans to continue stable growth by implementing a selective order strategy focused on profitability, based on its abundant order backlog.
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