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According to Yonhap News,

(SEOUL=Yonhap News) Daelim Industrial Co. and Daewoo Engineering & Construction Co. said Wednesday they have won a 3.5 trillion-won (US$3.2 billion) deal to build a facility in the southeastern part of South Korea, the country's largest-ever order for a single plant.

The deal calls for the construction of a residue upgrading complex and an olefin conversion system at a refinery owned by local oil refiner S-Oil Corp. in Ulsan, 414 kilometers southeast of Seoul, according to the two builders.

The new facilities are a part of S-Oil's projects to promote sustainable growth, as a residue upgrading plant will help to convert heavy fuel oil into more high value-added gasoline and olefins. The olefin conversion system, in turn, can be used to produce polymers used in materials such as plastic.

The combined construction cost is estimated at 4.5 trillion won, of which Daelim holds a 55 percent share at 1.93 trillion won, while Daewoo's portion accounts for 45 percent at 1.58 trillion won. The two had formed a consortium to clinch the mega deal.

Construction is to be completed in the first half of 2018, the companies said.

yjkim8826@yna.co.kr

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