Sungwon Pipe Announces New Contracts for 2011
Newly Secured Contracts Valued at Approximately $117 Million In Revenues
SEOUL, South Korea, Jan. 25, 2011 /PRNewswire/ -- Sungwon Pipe Co. Ltd. ("Sungwon Pipe" or the "Company") (Pink Sheets: SNGWY), Korea's leading provider of stainless steel pipes, announced several newly signed development contracts for 2011, spanning various industries and sectors across domestic and international markets.
Domestically, Samsung C&T Corporation has announced two projects which will require the use of Sungwon Pipe's stainless steel pipes in a semiconductor park project estimated to be worth a total of $8.5 million in annual sales revenues. As previously announced, the Company has disclosed this agreement with Samsung for a duration of 18 years.
In addition, Korea Gas Corporation (KOGAS), the world's largest liquefied natural gas (LNG) importer, has been enlisted by Samsung C&T Corporation for the Pyeongtaek LNG Terminal project, which is forecasted to generate stainless steel pipe sales of approximately $1 million for Sungwon Pipe. KOGAS's Samcheok LNG Terminal project is expected to generate stainless steel pipe sales of approximately $7.5 million for the Company.
A major vendor of Samsung Electronics, Sebo Manufacturing Engineering Corp., the largest pipe and plumbing installation construction company in Korea, will be constructing a semiconductor factory for Samsung Electronics beginning in March 2011. This construction project is estimated at approximately $70 million, of which $30 million is expected to contribute to the Company's sales in stainless steel pipes.
MS Metal Global Service ("MS Metal"), the wholly-owned subsidiary of the Company, has also been enlisted to collaborate on a desalination and power plant project with Doosan Heavy Industries & Construction Co. Ltd., with estimated sales revenue of $10 million for MS Metal. The project is expected to begin during the second half of 2011.
On the international front, Sungwon Pipe has announced that it will supply stainless steel pipes for the construction of Vietnam's chemical fertilizer factory, expected to generate $60 million in revenues for 2011.
Mr. Chung-Keun Kim, Chief Executive Officer of Sungwon Pipe stated, "As we begin 2011, we are very excited to have such a strong pipeline of sizeable projects so early on. This is a major undertaking for Sungwon Pipe to be increasingly involved in large infrastructure development projects throughout Korea as well as in emerging cities abroad. We view these project announcements as a significant step in the Company's recently announced initiative to increase its international visibility and presence. As we move further along in 2011, we look forward to keeping our investors well-informed of more new and exciting developments to come."
About Sungwon Pipe Co. Ltd.
Sungwon Pipe Co., Ltd. is a Korea-based company that is primarily involved in the production and supply of stainless steel pipes used in different industrial applications. Sungwon Pipe Co. Ltd. is Korea's number one stainless steel pipe manufacturing company. In December 2009, it acquired stockist and distributor MS Metal, as a wholly-owned subsidiary to become Korea's first and largest total stainless steel pipe company. The Company's products are used in paper manufacturing, petrochemical industry, food processing, heat exchangers, industrial structural products and shipbuilding. Sungwon Pipe distributes its products in domestic markets and recently announced an initiative to focus on the overseas markets with current contracts in the United States and Middle East. The Company's major customers include Samsung, Hyundai and Daewoo.
Sungwon Pipe Co., Ltd.
SOURCE Sungwon Pipe Co. Ltd.
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