STX Co., Ltd., STX Marine Service, and PK Valve Sign MOU to Promote New Business and Expand Business Cooperation

- △Establishment of Valve Production Base in Saudi Arabia △Tripartite Cooperation Agreement for Expanding STX Marine Service's Ship and Plant MRO and OEM/ODM Businesses
- To Maximize Synergy Among the Capabilities of the Three Companies, Establishment of a Joint Council and a Continuous, Close Cooperation System

[Photo by stx / MOU signing ceremony between Park Sang-jun, CEO of stx Marine Service, and Jeon Young-chan, CEO of PK Valve]

On the 4th, global business platform STX Co., Ltd. signed a business agreement (MOU) to expand investment and business cooperation for promoting new global businesses with comprehensive engineering service company STX Marine Service and Korea's largest comprehensive valve company PK Valve, aiming to secure future growth engines and promote the stable growth of the STX Group.

The signing ceremony held at the headquarters of STX Marine Service was attended by Park Sang-jun, CEO of STX Co., Ltd. and STX Marine Service, and Jeon Young-chan, CEO of PK Valve, who promised to strengthen business connectivity among the three companies and create strategic synergy between their core competencies and technologies.

Specifically, through this agreement, STX Co., Ltd., STX Marine Service, and PK Valve plan to actively pursue △establishing a valve production base in Saudi Arabia △expanding STX Marine Service's ship and plant MRO and OEM/ODM businesses. To this end, the three companies will form a joint consultative body, design business cooperation models, and share concrete business and investment strategies.

In particular, the STX Group expects that PK Valve, which possesses Korea's top valve technology, will establish a local valve factory in Saudi Arabia and win local infrastructure construction projects based on it, leveraging STX Co., Ltd.'s global network and trading capabilities, as well as STX Marine Service's diesel engine service business experience and ship/plant management know-how.

STX Co., Ltd. has maintained friendly relations with several Middle Eastern countries including the UAE by trading machinery and industrial materials such as automobiles and heavy equipment through its Dubai branch for many years. Likewise, STX Marine Service signed a Power Purchase Agreement (PPA) for a 900MW diesel power plant in Iraq in 2018 and has been operating and managing it, so STX Co., Ltd. and STX Marine Service are expected to play key roles in helping PK Valve expand its market share not only in Saudi Arabia but also in the Middle East and North Africa valve markets.

Park Sang-jun, CEO of STX, emphasized, “For the contents agreed upon in this MOU to make substantial progress and create mutual benefits, it is important for the three companies to establish a close cooperation system and discuss together at every stage from feasibility studies to investment and actual business execution to find the optimal solutions.”