DL E&C Pioneering New Markets, Enters Australian Plant Market

Signing of Memorandum of Understanding for Cooperation in Construction of Ammonia and Urea Production Plant

[Asia Economy Reporter Onyu Lim] DL E&C (formerly Daelim Industrial) is entering the Australian plant market. On the 4th, DL E&C announced that it signed a Heads of Agreement (HOA) with Leigh Creek Energy Limited to conduct a feasibility study and basic design for the construction of an ammonia and urea production plant.

As the preferred negotiator, DL E&C plans to complete detailed condition negotiations and finalize the main contract by next month, starting work in July. The contract amount is expected to be approximately 30 million dollars. DL E&C was selected as the exclusive preferred negotiator for this project, recognized for its technical expertise demonstrated in successfully executing the world's largest ammonia production plant construction project for Ma’aden in Saudi Arabia.

This project involves constructing a plant that produces ammonia, an intermediate product, from synthesis gas produced by the project owner, and then uses it to manufacture 1 million tons of urea annually. The site is located in the Leigh Creek mining area, 550 km north of Adelaide, the capital of South Australia. DL E&C will conduct the feasibility study and basic design over about one year. Based on this, it is expected to secure a favorable position for winning the design, procurement, and construction (EPC) contract when the project is subsequently ordered.

Since starting with the Vietnam Port Authority in 1966, DL E&C has carried out various construction projects in 35 countries worldwide. Newly launched after the split, DL E&C is focusing on pioneering new markets. This year alone, it has consecutively secured the modernization project of a Moscow oil refinery and the basic design project for a methanol plant in Russia, demonstrating its strength in the Russian market, and through this project, it has entered Australia for the first time.

To target new plant markets, DL E&C is employing a strategy that links basic design and EPC. Basic design sets the overall framework of the plant and establishes the foundation for design and cost estimation, essentially drawing the blueprint. While most domestic construction companies have focused mainly on EPC, DL E&C is expanding its business area to include basic design based on proven technical capabilities. With experience in basic design, efficiency can be maximized during the construction phase, significantly enhancing its competitiveness in securing contracts.

Yoo Jae-ho, Head of DL E&C’s Plant Business Division, said, “DL E&C’s presence has begun to shine in new markets that we have quietly pioneered as strategic markets,” adding, “We will firmly demonstrate the strength of DL E&C, which led the Middle East boom, in new markets.”

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