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[Sponsored Report] SK E&C goes beyond construction

Nov 29,2019
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SK E&C CEO Ahn Jae-hyun and Bloom Energy CEO K.R. Sridhar sign an agreement to form a joint venture. [SK E&C]
SK Engineering & Construction (SK E&C) is planning to expand to new markets from Central Asia to Western Europe by expanding into new markets.

While SK E&C has tended to concentrate on engineering, procurement and construction, which essentially involves bidding for a project, planning it and building it, the company is now looking to expand into the more long-term project development role, which can also include running a facility after it is completed.

In the mid- to long term, SK E&C will try to create new opportunities by changing its business model to create a sustainable growth environment.

SK E&C won its first development project this year, London’s Silvertown Tunnel project.

SK E&C was selected as preferred bidder for the Silvertown Tunnel project by Transport for London in June. The Korean company formed an investment consortium with Australia’s Macquarie, Spain’s Cintra, British firm Aberdeen and BAM from the Netherlands. The consortium is known as RiverLinx.

SK E&C has 10 percent stake in the consortium.

The project is to build two 1.4-kilometer (0.9-mile) tunnels that pass under the River Thames to connect Silvertown and the Greenwich Peninsula in London. The project is expected to cost 1 billion British pounds ($1.3 billion).

In terms of its engineering, procurement and construction, SK E&C has also formed a consortium with Ferrovial Agroman of Spain and British firm BAM Nuttall and has a 20 percent stake in this consortium.

“We are happy to enter the European construction market through this project. We will try to make additional business opportunities through joint ventures with global financial investors and constructors,” said Ahn Jae-hyun, CEO of SK E&C.

SK E&C is also trying to produce solid oxide fuel cells through a joint venture with Bloom Energy expected to be set up in December.

The production of the solid oxide fuel cells is expected to involve over 130 domestic suppliers to ensure higher quality and price competitiveness.

SK E&C said the joint venture with Bloom Energy is opening the door to new business opportunities in the global market.

By Kim Seung-jun [kim.seungjun@joongang.co.kr]