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

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

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

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.


Middle East organic milk company sees surge in sales during COVID-19 lockdown

Dairy and plant-based drink company Koita Foods saw a 350 percent rise in online sales last year. (Supplied)
Dairy and plant-based drink company Koita Foods saw a 350 percent rise in online sales last year. (Supplied)
Updated 18 min 32 sec ago

Middle East organic milk company sees surge in sales during COVID-19 lockdown

Dairy and plant-based drink company Koita Foods saw a 350 percent rise in online sales last year. (Supplied)
  • Online demand for Koita Foods’ dairy, plant-based drinks soar by 350%

RIYADH: Dairy and plant-based drinks company Koita Foods saw a 350 percent rise in online sales last year as consumers working from home during the coronavirus disease (COVID-19) pandemic embraced e-commerce and healthier diets.

“Many platforms are asking for our products as globally there is a big move toward buying online,” Mustafa Koita, the firm’s founder and CEO, told Arab News.

Established in 2013 in Dubai, Koita Foods’ mission is to make healthy food more accessible for families in the Middle East, North Africa, and South Asia (MENASA) region.

The company’s data showed that during the first half of 2020 total sales in Saudi Arabia increased by 111 percent year-on-year, with a 150 percent rise in demand for plant-based drinks, and a 140 percent growth in sales of lactose-free produce.

There has been a huge demand in Saudi Arabia recently for more organic, lactose-free, and non-dairy milk options, with sales up by around 31 percent.

Dairy and plant-based drink company Koita Foods saw a 350 percent rise in online sales last year. (Supplied)

“People are looking for vitamin D, especially when you’re looking at immunity. Immunity is now a buzzword with coronavirus,” Koita said.

Although the business’ online sales have increased during the period of the global health crisis, Koita noted that the virus outbreak had impacted on the sector.

“Seventy percent of my business is retail and grocery stores. The other 30 percent is hotels, restaurants, and catering. So, the hotels got shut down, but the grocery stores were the only thing open in the region,” he added.

In order to monitor the fast-growing new sector, the Saudi Food and Drug Authority (SFDA) has put in place stringent product labelling requirements, in a bid to adhere to international standards.

“They want consumers to see and to have more information at hand. So, we’ve also updated our labels with the SFDA requirements. And we’re very excited that the SFDA is acting as the leader,” Koita said.

Mustafa Koita, Founder and CEO of Koita Foods. (Supplied)

The company already has its own strict labelling policy on ingredients. “We already have very good ingredients, such as our organic chocolate milk which is made from organic cocoa, organic brown sugar, and organic milk.”

A self-funded venture, Koita conducted extensive research into the marketplace before launching his namesake products. Via social media, he interviewed thousands of mothers in Saudi Arabia, the UAE, Kuwait, Jordan, and Singapore to find out what they were looking for in a good organic milk solution.

When it came to production, he picked Torino, in Italy, a region known for making some of the best milk in the world. “I found out that the quality of milk depends on what the cows are eating or what is in the soil, as well as how the cows are treated, the pasteurization process, and packaging of the milk.”

He added that the land in Italy was very fertile and that cows there enjoyed a good quality of life. “They have a better view than I do in my own home,” he said.

Koita Foods’ products are sold in more than 1,000 retail outlets throughout the MENASA region and other emerging markets, with revenue continuing to grow.

“We did a lot of expansion in 2020, and I think now what we want to do is focus on doing a better job in the 11 countries that we’re already in.”

Koita added that Saudi Arabia was one of its core markets and that he aimed to improve the firm’s distribution network in the Kingdom over the next 12 months.