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Wed 30 May 2007 04:11 PM

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Samsung to build $950m Saudi plant

The construction giant's new deal brings even more Mideast projects for South Korea.

South Korea's Samsung Engineering Company has won a $946 million deal to build a chemical production plant in Saudi Arabia, the company announced today.

The preliminary agreement from Saudi Arabian Mining Co. calls for Samsung - the country's leading industrial plant builder - to build the ammonia facility within 43 months - by December 2010, said South Korean news agency Yonhap.

The Seoul-based company expects to sign a contract on the deal within one month.

The plant is set to be built 100 kilometres north of the eastern city of Jubail. It will have a daily production capacity of 3,300 tonnes of ammonia.

Shares of Samsung Engineering were trading at a record of 84,300 won ($89) following news of the deal, up 7.6%.

The company now expects to exceed a previous target for $3.5 billion in orders this year.

According to a Bloomberg report, South Korea's construction and engineering companies have won $132 billion in business on about 2,450 projects in the Middle East in the 34 years since they first entered the region.

This year alone, the country's contractors have received a combined $7.45 billion in new orders from the Middle East with almost half of that coming from the UAE, Bloomberg said.

Last week, figures showed that the UAE has

emerged as the biggest market

for South Korean construction companies in the first three months of this year. And South Korean construction firm Sungwon this month won a

$5 billion contract

to build a real estate and tourism development in one of Dubai's oldest districts.

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