Samsung Engineering to diversify Middle East operations

31 March 2010

South Korean firm wants to increase non-hydrocarbon share of workload to 30 per cent by 2015

South Korea’s Samsung Engineering plans to diversify its operations in the Middle East so that at least 30 per cent of its workload is not dependent on oil and gas projects by 2015.

DW Kim, chief operating officer at Samsung Engineering, tells MEED that the company’s ambitious growth plans meant that the contractor is looking to diversify its operations. The company wants to generate $30bn of new orders and revenues of $20bn by 2015.

“We need to increase our markets and to achieve our 2015 goals, we will have to increase our non-hydrocarbon areas as well as maintain our hydrocarbon growth,” he adds. “In the GCC countries we need to expand our market share in Qatar and Kuwait, as well as looking further afield like Russia, the CIS [Commonwealth of Independent States] and Africa.”

The company will pursue work in four new sectors: aluminium, steel, power and water.

“Over the past four years we have prepared for extending our [non-hydrocarbon] operations overseas, especially in the Middle East,” Kong says. “You will see us win aluminium, water, power plant and steel mill projects. This year I think there will be a minimum of one project for each.”

Samsung Engineering plans to tap into opportunities in Iraq, Kim adds.

“We plan to send a delegation to Iraq before the first half of this year. We will send some guys to travel, see what the market situation is and when the projects are going to be ready,” Kim says. “That will give us a much clear view of the market. Many other companies are planning to re-enter the Iraq market, but it is not ready yet,” he adds.

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