[Let's Run Again, Construction Korea] Technology Know-how Recognized for Its Value, POSCO E&C

[Asia Economy Reporter Yoo In-ho]

Vietnam, the heart of the Association of Southeast Asian Nations (ASEAN). Global companies are accelerating their strategies targeting the ASEAN market with Vietnam as the focal point. This is why news about investments and market entries by automobile, electronics, and petrochemical companies in Vietnam emerges almost daily.

As a result, large-scale contract projects are pouring into Vietnam. POSCO Engineering & Construction (POSCO E&C) has also jumped into this arena. Leveraging its overseas contract project expertise, POSCO E&C is putting its all into large-scale contract projects in Vietnam. Among these, the Long Son Petrochemical Plant (LSP) construction project, the first of its kind in Vietnam, stands out.

The Long Son Petrochemical Plant construction project is a massive undertaking to build facilities capable of producing 1 million tons of ethylene and 1.2 million tons of petrochemical products on Long Son Island, located about 150 km southeast of Ho Chi Minh City in Ba Ria Vung Tau Province. The total construction cost alone reaches $5.4 billion (approximately 5.7 trillion KRW).

◆ Creating a Miracle in Vietnam = POSCO E&C is participating in the port construction project, which involves building two petrochemical product piers and one construction pier as part of the Long Son Petrochemical Plant construction. The construction period is 36 months, from September 2018 to September 2021.

POSCO E&C first entered the bidding for this project back in 2014. At that time, POSCO E&C faced difficulties participating because it bid a construction cost higher than what the client had anticipated.

However, based on its accumulated engineering capabilities, POSCO E&C optimized the design and was finally selected as the preferred negotiator in 2016. In February 2018, the contract for the construction of the product export-import piers was finalized at 173.7 billion KRW.

To meet the construction schedule requiring the completion of the construction pier within 22 months after the start of construction, POSCO E&C simulated the construction process before commencement. This was to minimize potential risks during the construction by pre-planning the operation of necessary equipment.

Since the construction is carried out at sea, POSCO E&C applied construction technologies to ensure quality and safety. The company fabricates pipe supports, totaling 2 km in length, on land and then transports and installs them offshore. By semi-assembling steel frames, piping, and electrical equipment before moving them offshore, POSCO E&C secured construction quality and safety. This approach also significantly shortened the construction period.

The offshore concrete structures were also changed from originally planned offshore construction to precast concrete methods, improving construction convenience.

Currently, POSCO E&C is also undertaking a 450 billion KRW project to install 28 product storage tanks within the petrochemical complex and an 80 billion KRW site development project. In terms of contract value, the product storage tank project is among the largest single chemical engineering projects POSCO E&C has executed overseas.

The product storage tanks are facilities for storing raw materials such as naphtha and LPG for naphtha cracking and plastic raw materials (PE, PP, HDPE) used in various containers within the petrochemical complex, making construction quality paramount.

◆ The Vanguard of Overseas Construction, Now Diversifying = POSCO E&C first entered Vietnam in 1995 and has executed construction projects worth 5.7 trillion KRW over 25 years until 2018.

During this time, POSCO E&C successfully carried out large-scale projects such as the four-story Diamond Plaza, a landmark and the first modern department store in southern Ho Chi Minh City; the Hanoi Metropolitan Master Plan (7 billion KRW) in July 2011; the Noi Bai-Lao Cai Highway sections A1, A2, and A3 (490 billion KRW) in March 2015; and the Formosa Ha Tinh Integrated Steel Complex (510 billion KRW) in December 2015. POSCO E&C has especially regarded Vietnam as a strategic country, building strong trust and achieving remarkable results locally.

For mega projects like the Long Son Petrochemical Plant construction, POSCO E&C is strengthening its contract acquisition capabilities in four strategic countries: Vietnam, Indonesia, Saudi Arabia, and the Philippines. It also plans to diversify its contract acquisition processes, including collaboration with local developers.

In particular, POSCO E&C plans to focus its capabilities on smart city construction, leveraging its urban development experience from projects such as the Songdo International Business District and the An Khanh New Town project in northern Hanoi, Vietnam. It aims to target overseas construction markets not only through projects linked to key clients but also through planned proposal projects.

By internalizing Smart Construction capabilities aligned with the Fourth Industrial Revolution, POSCO E&C plans to further strengthen its future construction technology competitiveness. It will expand the use of drones, 3D scanners, and Building Information Modeling (BIM), and focus on developing disaster risk prediction and prevention systems based on big data, a first in Korea.

A senior POSCO E&C official said, "With abundant experience in civil engineering projects in Vietnam such as the Cai Mep International Port and the Ba Ria Vung Tau cold rolling mill exclusive port, POSCO E&C will strive to expand into other countries in the future," adding, "We are recognized for our overseas contract acquisition and construction capabilities as well as solid technical skills."

This content was produced with the assistance of AI translation services.