(MENAFN - Khaleej Times) Arabtec Holding has tied-up with Korean construction giant Samsung Engineering Co to enter into engineering, procurement and construction business in the UAE and wider Middle East. The Arabtec-Samsung Engineering will take up oil and gas, power and infrastructure projects.
Arabtec-Samsung Engineering is incorporated and headquartered in Abu Dhabi and is owned 40 per cent each by Arabtec and Samsung Engineering and the remaining 20 per cent is owned by Tasameem Property Investment.
The new EPC firm will engage in the full range of sectors from hydrocarbon processing, refining, petrochemicals and fertilisers to industrial and related infrastructure projects i.e. power plants, water treatment and environmental, metallurgy and industrial projects. The oil and gas, power and infrastructure sectors in the Mena region are key drivers of long-term economic growth in the region.
The major projects market in the region's oil and gas, power and infrastructure is gaining momentum with the region's 100 biggest schemes currently under construction accounting for more than $304 billion of capital spending.
Activity in these sectors in 2013 and beyond is set to increase dramatically in the coming years. The top 50 projects currently planned or already under way across the region are valued at $1.56 trillion, representing a 42 per cent increase compared to 2012.
The shareholder agreement was formalised on September 24 at a special signing ceremony at Samsung Engineering's headquarters in Seoul, South Korea.
Hasan Abdullah Ismaik, managing director and chief executive officer of Arabtec Holding described the launch of EPC company as "a major milestone in our ambitious strategy to expand into new areas, in association with world-class partners, as part of our endeavour to consolidate our status as a key player at the regional and international levels.
"The new joint venture company is a powerful combination of construction expertise, decades of successful project management, strong engineering capability and an extensive regional network in government and business. I am confident that this combination of leading capabilities will prove a success in the near term and look forward to announcing Arabtec-Samsung Engineering's future achievements," Ismail said. Park Choong Heum, Samsung Engineering's President and CEO, said: "The JV will build on the success of our partnership with Arabtec on some of the region's highest profile projects. We believe that our new company is well-positioned to capitaliase on the exciting growth opportunities in the oil and gas, power, and related infrastructure sector."
Korean construction companies are the key stake holder in the engineering, procurement and construction business, bagging $26 billion worth projects in Abu Dhabi in the hydrocarbon industry in the recent. The new company will establish a 'Centre of Excellence' in Abu Dhabi for training Emirati engineers, giving aspiring Emirati engineers access to both companies' expertise, technology, know-how, support and resources.