Korea’s POSCO E&C negotiates $2.92bn Vision 2030 projects

Han Chan-Kun, president and CEO of POSCO E&C, and Cho Young Doo, vice CEO for strategic planning, address a press conference on Monday.
Updated 22 June 2016
0

Korea’s POSCO E&C negotiates $2.92bn Vision 2030 projects

RIYADH: POSCO E&C, a South Korean global construction leader, says it is negotiating projects related to Saudi Vision 2030 worth $2.92 billion.
Han Chan-Kun, president and CEO of POSCO E&C, announcing this here on Monday, highlighted Korean and his company's contributions in the implementation of Vision 2030.
Chan-Kun said his company has lined up many projects for the Kingdom to support its march to achieve Vision 2030, including 13 projects under planning, two under construction and two under negotiation.
"Under construction projects are the $421 million sulfur railcar roaring faculty owned by Saudi Aramco and the $79 million Yanbu wastewater treatment plant owned by Marafiq,” he said.
"The two projects under negotiations are the $2.00 billion Ghazlan power plant owned by Saudi Electricity Company (SEC) and construction of $918 million five-star hotel owned by Dar Al Hijrah," he added.
Chan-Kun, a prominent South Korean business leader, highly lauded Vision 2030 stating that it will transform the country to a new advanced level both regionally and globally, and will provide the Kingdom and its people more prosperity and better quality of life in the post-oil era.
"Korea will be a strong contributor to this transformation process with all that it has in terms of knowledge and expertise. Our company already has started this by working in some of the vision projects and it will work on more once we get more opportunities," he said.
He pointed out that his company entered into partnership with the Saudi Public Investment Fund (PIF), which purchased 38 percent (around $ 1.1 billion) of his company and this partnership resulted in establishing PECSA, a new Saudi-Korean joint venture company that will be a major player in the fields of urban development, housing and infrastructure construction in the country.
He hoped that the new JV will place his company in a better position to offer the best possible projects in its specialties across the Kingdom.
"While partnerships with many others can be merely for draining profits from the country after completion of projects and nothing else, our partnership with PIF, hopefully will be mutually beneficial and will secure profitability and stability, and sustainability for the projects we implement, " Chan-Kun added.
"Also, the joint venture will benefit in technology transfers, job creation, improve Saudi and GCC engineers’ capabilities by interacting with their high level counterparts in POSCO E&C," he pointed out.
Chan-Kun said his company will provide many job opportunities for Saudis especially in the field of engineering and construction. He expressed his admiration for the Saudi students currently studying in South Korea and said with hard work and devotion they are assured of taking their right places in many fields during the implementation of Vision 2030 when they return home.
He pointed out that his company, ranked third in Korea and 39th globally in the field of engineering and construction. It is part of the Korean and global giant, POSCO Group, that has six major business affiliates in the fields of steel, engineering, trade, IT, energy, and chemistry, and comprises 41 subsidiaries in these fields.
Cho Young Doo, vice CEO for strategic planning, also addressed the media shedding light on POSCO E&C's strategic approach in delivering Vision 2030.
He said his company's strategic approach will focus on three elements. First, the strategic relationship between Korea and the Kingdom that goes back to 1960's as well as the strategic partnership and expertise of the three concerned parties — Saudi PIF, POSCO Group, and POSCO E&C.
The second is provision of total solution from the accumulative know-how and urban development expertise his company has acquired from many past mega projects' execution.
The third is job creation and improving the capabilities of Saudi engineers and work force in construction specialties.


Thyssenkrupp workers urge thoroughness over speed in Tata Steel talks

Updated 53 min 44 sec ago
0

Thyssenkrupp workers urge thoroughness over speed in Tata Steel talks

FRANKFURT/DUISBURG: Thyssenkrupp workers on Thursday urged management to solve outstanding issues in talks with Tata Steel to create a European joint venture, signaling they would not be opposed to a further delay of the transaction if necessary.
The remarks come as Thyssenkrupp Chief Executive Heinrich Hiesinger finds himself under pressure from all sides to present a deal that will satisfy employees and investors, which have grown increasingly frustrated with the lengthy negotiations.
“There are still a number of unresolved issues until a possible signing,” Tekin Nasikkol, chairman of Thyssenkrupp Steel Europe’s works council and a member of Thyssenkrupp AG’s supervisory board, said in a statement.
“We expect all parties to focus on diligence rather than speed in fixing the problems.”
Talks to create a European steel joint venture have dragged on for more than two years and have hit a snag after the diverging performance of the two businesses prompted Thyssenkrupp’s activist shareholders Elliott and Cevian to ask for better terms.
Hiesinger has several options to address the valuation gap and is seeking approval for the venture from Thyssenkrupp’s 20-member supervisory board, where half of the seats are held by labor representatives, by the end of next week.
“If Mr. Hiesinger needs more time he can have it as far as I’m concerned,” Nasikkol said.
Hiesinger’s options range from changing the 50-50 ownership structure, possibly to 55-45 or 60-40 in favor of Thyssenkrupp, transferring more Thyssenkrupp debt onto the venture, excluding Tata Steel from dividend payments or securing a cash payment from the Indian firm to settle the difference.
Nasikkol confirmed labor leaders would not support the venture taking on more debt. So far, Thyssenkrupp plans to transfer €4 billion ($4.6 billion) in liabilities, compared with Tata Steel’s €2.5 billion.