TPI April 2011

business & market news Sungwon Pipe announces new contracts

Sungwon Pipe Co, Ltd is a Korean producer and supplier of stainless steel pipes used in industrial applications. The company has announced several newly signed development contracts for 2011, spanning various industries and sectors across domestic and international markets. Domestically, Samsung C&T Corporation has announced two projects which will require the use of Sungwon Pipe’s stainless steel pipes in a semiconductor park project estimated to be worth a total of $8.5mn in annual sales revenues. The company has disclosed this agreement with Samsung for a duration of 18 years. In addition, Korea Gas Corporation (KOGAS), a liquefied natural gas (LNG) importer, has been enlisted by Samsung C&T Corporation for the Pyeongtaek LNG Terminal project, which is forecast to generate stainless steel pipe sales of approximately $1mn for Sungwon Pipe. KOGAS’s Samcheok LNG Terminal project is expected to generate stainless steel pipe sales of approximately $7.5mn for the company. A major vendor of Samsung Electronics, Sebo Manufacturing Engineering Corp, the largest pipe and plumbing installation construction company in Korea, will be constructing a semiconductor factory for Samsung Electronics beginning in March 2011. This construction project is estimated at approximately $70mn, of which $30mn is expected to contribute to the company’s sales in stainless steel pipes. MS Metal Global Service, a wholly owned subsidiary of the company, has also been enlisted to collaborate on a desalination and power plant project with Doosan Heavy Industries & Construction Co Ltd, with estimated sales revenue of $10mn for MS Metal. The project is expected to begin during the second half of 2011. On the international front, Sungwon Pipe has announced that it will supply stainless steel pipes for the construction of Vietnam’s chemical fertiliser factory, expected to generate $60mn in revenues for 2011. Mr Chung-Keun Kim, chief executive officer of Sungwon Pipe stated, “This is a major undertaking for Sungwon Pipe to be increasingly involved in large infrastructure development projects throughout Korea as well as in emerging cities abroad. “We view these project announcements as a significant step in the company’s recently announced initiative to increase its international visibility and presence. As we move further along in 2011, we look forward to keeping our investors well-informed of more new and exciting developments to come.”

Sungwon Pipe Co Ltd – South Korea www.sungwonpipe.com

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