DL E&C, a construction engineering company based out of South Korea, has reportedly secured a new contract to participate in the construction of a large-scale gas chemical plant based in Russia, overcoming leading European competitors.
The contract is worth KRW 1.6 trillion (about €1.17 billion), and DL E&C will handle the development and equipment procurement. The plant is expected to produce over 3 million tons of polyethylene 50,000 tons of hexane, and 120,000 tons of butane per year after it is ready.
The project's centerpiece is the construction of the world's biggest polymer plant based on single line in the Ust-Luga region, 110 kilometers southwest of St. Petersburg, one of key Russian cities lining the Gulf of Finland.
The construction of Russia's biggest gas and chemicals facility, with a capacity to annually process more than 45 billion m³ of natural gas into chemical products and LNG, is now ongoing.
DL E&C defines success in a competition with leading European construction businesses to participate in the construction of the largest plant in Russia. Moreover, winning the deal in the country, a major petrochemical industry player, also demonstrates the company's technological superiority.
DL E&C stated that it is looking forward to obtaining new projects in Russia, thanks to its demonstrated hard-to-beat competence.
Yoo Jae-ho, head of DL E&C's plant business division, stated that this project is significant because the firm has secured a large order in Russia, a region where Korean construction firms have a high barrier to entry. To consolidate its place in the booming Russian market, DL E&C will increase its digital innovation process and BIM-based design capability.
The operating profit ratio of South Korean businesses increased to 14.3% in the third quarter of 2021, the highest in the sector. Its quick development will be apparent only if it receives new high-margin significant contracts now that its profit structure has stabilized as a result of concentrating on profitable projects.
Source credit: https://www.businesswire.com/news/home/20220103005154/en/DL-EC-Wins-KRW-1.6-trillion-Russia-Gas-Chemical-Plant-Contract