Samsung Engineering Wins 1.4 Trillion Won Petrochemical Plant Order in Russia

Participation in the 'Baltic Ethane Cracker Project'
First Entry into the Russian Market...A Remarkable Achievement

Choi Sung-an, the newly appointed CEO of Samsung Engineering.

[Asia Economy Reporter Jin-ho Kim] Samsung Engineering has successfully entered the Russian market for the first time.

Samsung Engineering announced on the 9th that it signed a contract with the Chinese state-owned construction company CC7 for the design and procurement work of the Baltic Ethane Cracker project in Russia.

The original client, Russia's BCC, signed an EPC (Engineering, Procurement, and Construction) contract with CC7. Samsung Engineering will undertake the EP (Engineering and Procurement) work as a subcontractor. The contract amount is approximately 1 billion euros (about 1.3721 trillion KRW), and the contract work is planned to be completed by 2024.

The project involves installing two ethane cracker units at the Baltic Complex in the Ust-Luga area, located 110 km southwest of Saint Petersburg, Russia. Once completed, it will produce about 2.8 million tons of ethylene annually.

Ust-Luga is one of Russia's major port cities located on the Gulf of Finland, currently undergoing large-scale investments, and is planned to host Russia's largest gas chemical complex.

With this order, Samsung Engineering has entered the Russian market for the first time, achieving diversification in overseas markets. Russia is an energy-rich country with the world's largest reserves of natural gas and oil, consistently issuing large-scale plant construction projects.

In particular, the ethylene sector is one of Samsung Engineering's core products. Stable project execution and profitability are expected in the future.

A Samsung Engineering official said, "Our technological competitiveness based on business execution innovation and extensive product experience served as the foundation for winning the order," adding, "We will successfully carry out our first project in Russia, build trust with the client, and further expand our business execution in the future."

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