[Seoul, Korea] September 1, 2014 – Samsung Engineering Co., Ltd, the first and largest engineering company in Korea has officially announced that it will merge with Samsung Heavy Industries, the world’s market leader in drillship LNG carriers and FPSO.
The merger between Samsung Engineering and Samsung Heavy Industries was decided during their board of directors meeting on September 1 to create a “world-class total solution provider for shipbuilding and onshore and offshore services.”
The merger ratio will be fixed at 1:2.36. Therefore, Samsung Heavy Industries will issue new stocks so that the shareholders of Samsung Engineering can exchange their shares for the Samsung Heavy Industries’ shares and receive 2.36 Samsung Heavy Industries shares for every Samsung Engineering share they own.
The two companies plan to hold a special shareholders meeting on October 27, 2014 and complete the merger process on December 1, 2014.
Through the merger, Samsung Heavy Industries will gain engineering, procurement, and project management capabilities, which are the strengths of Samsung Engineering, and establish a stable foundation for the growth of its offshore plant business.
Meanwhile, Samsung Engineering, which has focused its business in onshore hydrocarbon plants, will be able to diversify into high value-added projects such as onshore LNG and offshore plants by securing Samsung Heavy Industries’ offshore plant fabrication capabilities, which is recognized as one of the best in the world.
The merger will give the two companies a chance to become a global top-tier EPC (Engineering, Procurement and Construction) company. Their goal is to grow into a world-class total solution provider, increasing their combined revenues of 25 trillion in 2013 to 40 trillion won in 2020.
“The two companies will be reborn as the world’s most competitive plant company based on our world-class manufacturing facilities, fabrication experience, and outstanding technical manpower in the onshore and offshore businesses,” said Dae-young Park, President and CEO of Samsung Heavy Industries.
Choong Heum Park, President and CEO of Samsung Engineering, was quoted as saying, “We will emerge as a total solution provider that caters to the diverse needs of our clients by combining the expertise and technologies we have each accumulated as individual companies in the plant, shipbuilding, and offshore industries.”
About Samsung Engineering Co., Ltd.
Samsung Engineering is one of the world’s leading engineering, procurement, construction and project management (EPC & PM) companies. With experience in over 40 countries, the company provides total project management from planning and financing to construction and commissioning and has built some of the world’s largest and most complex hydrocarbon plants.
About Samsung Heavy Industries.
Founded in 1974, Samsung Heavy Industries became acknowledged as a leading company in the high-tech, large-scale shipbuilding sector by completing Dock 3, the world's largest of its type, in 1994. In the 2000s, it took its shipbuilding capabilities to a whole new level by implementing the mega-block construction method. It started its EPC offshore plant business since 2010 to lay the foundation for future growth and made tireless efforts to secure capabilities to execute offshore projects.