DL E&C, Hoban, Kolon Global
Sign Business Agreement with Saudi Institutions and Companies
Domestic construction companies that accompanied President Yoon Suk-yeol on his Middle East tour as part of the economic delegation have consecutively signed business agreements with Saudi institutions and companies, achieving significant results. Although still at the agreement stage, it is meaningful in that they have laid the groundwork to participate in the NEOM City project, which is worth $25 billion (approximately 34 trillion KRW). Domestic construction companies, which had faced difficulties in advancing projects at home due to factors such as economic recession and interest rate hikes, are seeking new opportunities in the Middle East. In particular, construction companies are determined to leverage this momentum to spark a 'second Middle East boom' in Saudi Arabia.
According to the construction industry on the 24th, Kim Jeong-il, President of Kolon Global, recently led the overseas sales team on a business trip to Saudi Arabia. Last year, Kolon Global visited Saudi Arabia as part of the 'One Team Korea' Saudi bidding support group, led by Minister of Land, Infrastructure and Transport Won Hee-ryong.
President Kim actively engaged in sales activities focusing on Kolon Global's main business areas such as wind power, modular construction, water treatment, and smart farms. As a result, Kolon Global, participating as part of the Middle East delegation, signed memorandums of understanding (MOUs) on the 22nd at the 'Korea-Saudi Investment Forum' held in Riyadh with two local companies: Masco and the Saudi National Water Company, covering water treatment and living infrastructure sectors. They agreed to jointly participate in large-scale procurement projects of the Saudi National Water Company with Masco, a water treatment-related company, and signed an agreement with Paide, a manufacturing and distribution company, to establish a factory producing artificial turf. The plan is to expand market share in Saudi Arabia by utilizing Kolon Group's recyclable eco-friendly artificial turf production technology.
A Kolon Global official said, "This is the first time we have had concrete results that could lead to orders in Saudi Arabia," adding, "Although still at the MOU stage, it is meaningful as it has laid the foundation to participate in the NEOM City project in the future."
Similarly, Hoban Construction, which visited Saudi Arabia as part of the Middle East delegation, leveraged the experience of Hoban Group Chairman Kim Seon-gyu, who led several Middle East projects during his tenure at Hyundai Construction, to engage in on-site, close communication. Hoban Construction, which was promoting the establishment of an ultra-high voltage cable production base in Saudi Arabia through Korea Electric Wire, took the opportunity to expand cooperation into its core business areas such as housing. Hoban Group promised mutual cooperation with Saudi Mohammed Al-Ojami Group in construction, manufacturing, and other businesses within Saudi Arabia. Both parties agreed to form a consortium for joint investment in Saudi mega projects, with Hoban Group's construction affiliates cooperating in housing construction in Saudi Arabia. They also plan joint investment in ultra-high voltage, high voltage, and medium-low voltage cable production corporations in Saudi Arabia and pursue technical cooperation related to cable factories.
DL E&C signed a business agreement with the Saudi Saline Water Conversion Corporation (SWCC) to apply small modular reactors (SMRs) to desalination plants to supply power. SWCC, a Saudi government-affiliated institution and the country's second-largest power producer, currently operates the world's largest seawater desalination facility. Through its affiliated research institute, it leads carbon reduction projects in seawater desalination and power generation using renewable energy.
Meanwhile, according to the Overseas Construction Association, the cumulative overseas construction contract amount as of the third quarter this year was $23.53 billion (319.22 trillion KRW). This is the highest amount since 2015 ($34.5 billion) for the same period.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
