POSCO E&C Wins $400 Million Steel Production and Rolling Mill Contract in Oman

- Contract signed with the largest steel mill in Oman

- Signals start of steel mill plant construction projects in the Middle East region

SEOUL, South Korea, Dec. 9, 2014 /PRNewswire/ -- POSCO E&C (CEO Hwang, Tae-Hyun) signed a $400 million (approx. KRW 415.8 billion) contract for a steelmaking and rolling mill plant with Sun Metals LLC in Oman on November 24^th.

Attending the contract ceremony held at the company building in Songdo were the director of Sun Metals LLC, the ordering entity Sivarajan, the project coordinator, the president of Sojitz Machinery Sako along with the vice president of POSCO E&C An Byung-Sik.

The steelmaking and rolling plant will be constructed with the capacity to manufacture 2.5 million tons of billet, steel bar and special steel, and the construction period will be 30 months from the effective date of the contract. As the construction site is Sur industrial complex located in the northeast of Oman, the project will be carried out with the support of the Oman government.

POSCO E&C is the world's only construction company that can manage the whole construction process of an integrated still under a PEPCOM arrangement. This steelmaking and rolling plant project in Oman will be undertaken under PEPCOM, which is one step more advanced from simple EPS.

* PEPCOM refers to project execution en bloc throughout the entire project cycle, including project planning, engineering, procurement, construction and operation and maintenance.

It is expected that this project contract of POSCO E&C will allow not only POSCO E&C, but also other domestic construction companies, to extend their steel plant projects in the Middle East. It has been difficult to capitalize on opportunities to enter into contracts with organizations in the Middle East due to the main ordering organizations in the steel market in the Middle East preferring to make contracts with advanced construction companies in Europe. However, POSCO E&C now expects more orders for follow-up projects as the ordering entity, Sun Metals LLC, plans to expand its steel mills.