Arabtec and Samsung to make joint bid for giant projects

Updated 18 April 2013

Arabtec and Samsung to make joint bid for giant projects

Arabtec, the contractor part-owned by Abu Dhabi fund Aabar, signed an agreement with Korea’s Samsung Engineering Co. to jointly form a new company that will focus on large energy and power-related projects in the region.
The Dubai-based builder, which is planning a $1.8 billion capital increase as part of its expansion drive, said the new firm would be 60 percent owned by Arabtec and headquartered in of Abu Dhabi.
Samsung Engineering would own the remaining 40 percent, the two companies said in a joint statement.
Under the terms of the agreement, the new firm will exclusively bid for projects in oil and gas, power and infrastructure segments in the Middle East and North Africa, in contracts ranging between $ 3 billion and $ 10 billion, the statement said.
Arabtec is keen to expand into the oil and gas construction business and is also set to acquire the remaining 40 percent it does not already own in UAE oil and gas construction firm Target Engineering, according to sources familiar with the plan.
Arabtec replaced its chief executive in February as part of the shake-up led by Aabar, which has been tightening its grip on the group.
Hasan Abdulla Ismaik, managing director and CEO of Arabtec, said, “We have a successful history partnering with Samsung Engineering’s sister company, Samsung C&T. We have already worked together on some of the region’s highest profile projects, including Burj Khalifa.”
He added: “This JV is the logical next step in the relationship between the two companies. Arabtec-Samsung Engineering will be well-positioned to capitalize on the exciting growth opportunities in oil and gas, power and infrastructure. Samsung Engineering is already the leading EPC contractor in MENA, with their experience and track record of successfully executing large scale projects, Arabtec has the right partner to achieve its strategic goals in EPC.”
Park Ki-Seok, Samsung Engineering’s President and CEO, said: “Samsung Engineering is currently executing major projects in the UAE, worth $ 9 billion. Through this partnership with Arabtec to form a JV, we hope to expand our presence in MENA as well as contributing to the development of the local UAE community.”
Khadem Al Qubaisi, chairman of Arabtec Holding, said “Our partnership with Samsung Engineering is evidence of our growth strategy being put into action. The Joint Venture will be a powerful alliance of two market leaders with complementary skills in engineering, procurement and construction. We are currently considering further joint ventures, with world class companies to progress other areas of Arabtec’s growth strategy.”

Germany: US calling European cars a threat is ‘frightening’

Updated 16 February 2019

Germany: US calling European cars a threat is ‘frightening’

  • ‘If these cars ... suddenly spell a threat to US national security, then that is frightening to us’

MUNICH, Germany: German Chancellor Angela Merkel on Saturday labelled as “frightening” tough US trade rhetoric planning to declare European car imports a national security threat.

“If these cars... suddenly spell a threat to US national security, then that is frightening to us,” she said.

Merkel pointed out that the biggest car plant of German luxury brand BMW was not in Bavaria but in South Carolina, from where it exports vehicles to China.

“All I can say is it would be good if we could resume proper talks with one another,” she said at the Munich Security Conference.

“Then we will find a solution.”

A US Commerce Department report has concluded that auto imports threaten national security, setting the stage for possible tariffs by the White House, two people familiar with the matter said Thursday.

The investigation, ordered by President Donald Trump in May, is “positive” with respect to the central question of whether the imports “impair” US national security, said a European auto industry source.

“It’s going to say that auto imports are a threat to national security,” said an official with another auto company.

The report, which is expected to be delivered to the White House by a Sunday deadline, has been seen as a major risk for foreign automakers.

Trump has threatened to slap 25 percent duties on European autos, especially targeting Germany, which he says has harmed the American car industry.

After receiving the report, the US president will have 90 days to decide whether to move ahead with tariffs.

Trump in July reached a trade truce with European Commission President Jean-Claude Juncker, with the two pledging no new tariffs while the negotiations continued.

Brussels has already drawn up a list of €20 billion ($22.6 billion) in US exports for retaliatory tariffs should Washington press ahead, the commission’s Director-General for Trade Jean-Luc Demarty told the European Parliament last month.

The White House has used the national security argument — saying that undermining the American manufacturing base impairs military readiness, among other claims — to impose steep tariffs on steel and aluminum imports, drawing instant retaliation from the EU, Canada, Mexico and China.

Trading partners have sometimes reacted with outrage at the suggestion their exports posed a threat to US national security.