2020 RPME Top 30 EPC Contractors: Daelim Industrial Co

Published: 14 April 2020 - 4 a.m.
By: Martin Menachery
In November 2019, Daelim Industrial Co, a major construction firm in South Korea, won a $462mn order to build a petrochemical plant in South Korea. Under the contract with Hyundai Chemical Co, Daelim Industrial will build the heavy-feed petrochemical complex in Daesan, 120 kilometres south of Seoul. The plant will be able to produce 250,000 tonnes of polypropylene as well as 600,000 tonnes of polyethylene a year, according to the company.

Daelim Industrial is the third largest builder in South Korea in terms of building capacity, according to recent government data. Hyundai Chemical is a joint venture between South Korea's Hyundai Oilbank Co and Lotte Chemical Corp. Once the plant is completed, various petrochemical products using intermediate crude – the residue of crude oil – can be produced.

Polypropylene is mainly used for drug bottles, or containers, or for auto electric/electronic parts due to its excellent heat resistance and chemical resistance. LDPE is used for packing envelopes, or wraps. HDPE is used for various containers, or insulation materials such as wires. Daelim will carry out the project via the EPC method wherein it is in charge of design, materials and equipment procurement, and construction. Construction was started in May 2019 and is slated to be completed in June 2021.

In October 2019, Daelim announced that the KNPC SHFP site in Kuwait achieved early completion of construction. The site completed the pre-commissioning phase by shortening the original construction period of 18 months by one month thanks to the repair and expansion of existing sulphur processing facilities according to the plan to increase sulphur output on 17 May 2018. The site received the PTO (provisional turn over) certificate one month earlier from the client. The KNPC SHFP site is a project of increasing the processing capacity from 2,431 tonnes/day to 5,000 tonnes/day through the repair and expansion of the existing facilities that solidify the liquid sulphur produced in three refineries within the Mina Al-Ahmadi refinery, Kuwait’s largest oil refining industrial complex, to solid sulphur granule, and which store and export the solidified sulphur.

KNPC (Kuwait National Petroleum Company) is the national oil refining company of Kuwait. Established in October 1960, KNPC handles the responsibility of oil refining, gas liquefaction, and distribution of petroleum goods within the local market. KNPC is also handling Clean Fuels Project.

Daelim signed a $892mn contract in October 2018 for the new ammonia plant construction project of Saudi Arabia’s Ma’aden. CEO Darren Davis of Saudi Arabia’s state mining company Ma’aden and Daelim General Manager Im Hun-jae attended the signing ceremony. This project involves building an ammonia production plant in the Ras Al-Khair region located 80km north of Jubail, eastern part of Saudi Arabia. The plant will produce 3,300 tonnes of ammonia daily using natural gas as raw material.

Since ammonia is used in many fields including refrigerant, medical supplies, artificial seasoning and metal surface processing, it is hailed as a high value-added petrochemical product. The project will be completed in 2021. The EPC (lump-sum turnkey) mode, through which Daelim Industrial is in charge of design, equipment and materials, and construction, is used for the project.

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