Samsung Engineering India (SEI), the Indian subsidiary of Korea-based Samsung Engineering Company, has bagged a refinery plant contract from Nagarjuna Oil Corporation Ltd. (NOCL). The lump-sum turnkey project will produce 1.25-lakh barrels per day through a diesel hydro desulphurisation process (DHDS). The plant would be located in Cuddalore in Tamil Nadu and would be completed by March 2012.
The NOCL project marks an important milestone for Samsung Engineering, as it will be the first contract independently won by SEI, a major EPC (engineering, procurement and construction) hub located in New Delhi. It would help SEI further consolidate itself as a local Indian EPC company to execute big projects independently from for its Korea-based headquarters.
“SEI is an example of a successful ‘glocalisation' investment plan in India and focusing on transferring engineering skills to the locals. SEI already has over 400 Indian staff at all levels, from various disciplines such as engineering, proposals, procurement, construction, and project management and continues to strengthen all capability for further accomplishment,” Samsung Engineering's spokesperson Charlotte Lee told The Hindu . Since entering the Indian market in 1997, Samsung Engineering had been engaged in refinery and petrochemicals projects, completing some major projects. Now, the Korean engineering major was working on converting SEI into a complete research and design centre as well as a total EPC service provider to serve various sectors so that it could independently handle projects from India and other countries. SEI also planned to take its total employees' strength to 1,000 by 2015, she added.
Correction
With reference to a report “Samsung Engg bags Nagarjuna Oil contract” (“Business page”, May 5, 2010), Nagarjuna Oil Corporation Ltd. clarifies that it will start commissioning its refinery by the end of 2011, and not by March 2012 as said in the first paragraph.
