news - As independent grain import infrastructure is set up, a stable supply of principal crops is now possible STX Business Group Newsletter
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1 STX Business Group Newsletter news World Best STX with the spirit of Creativity & Challenge No As independent grain import infrastructure is set up, a stable supply of principal crops is now possible STX held the opening ceremony on July 9 th (local time) celebrating the completion of the grain terminal located at Port of Longview, Washington. At the ceremony were present STX Group Chairman Kang Duk-soo, STX Pan Ocean President Pae Seon-ryung, Bunge Chairman Alberto Weisser, Itochu Chairman Eizo Kobayashi, EGT CEO Larry Clarke, Ambassador Islam Siddiqui, Chief Agricultural Negotiator of United States Trade Representative etc. The grain terminal, built by STX Pan Ocean in a joint investment with Bunge Ltd. in the United States and Itochu Corporation of Japan, is a grain exporting facility equipped with storage facilities, transport lanes, dockyards and offloading facilities, and located in the northwestern part of America, can handle yearly 9 million tons of grains such as corn, soybeans and wheat. As an advanced facility constructed for the first time in the part of the country since the 1980s, it has a storage capacity of 137 acres (about 550,000m 2 ), far larger as compared to other grain terminals located nearby, and an improved offloading speed. It not only strengthens price negotiation power with major grain companies that control 80~90% of global grain trade, but also makes it possible to make a direct purchase with the logistics and distribution facilities secured for carrying grains from principal crop growing countries to South Korea. STX, now equipped with the country s first system simultaneously handling grain distribution and delivery, intends to focus on creating the synergy among its affiliates with the grain terminal performing at the front and center. STX Corporation has secured a base for its growth, tapping into the strengths as the country s first company trading in grains such as corn, soybean, and wheat, giving a steady flow of maritime delivery contracts to STX Pan Ocean, South Korea s largest bulk carrier company. Furthermore, with the year s grain trade volume through the terminal forecast at USD 2 billion, it is expected to bring in a considerable amount of operating profit.
2 news Delivering World s Largest VLOC and Best-performing Drillship in A Row The drillship, as the second one ordered in August 2010 from Noble Drilling, the global crude oil and gas drilling company, is 189m long and 32.2m wide and can sail at 11 knots, while it can drill as deep as 12,000m with 180 persons on board. It is a compact drillship in a new concept, smaller in sizes as compared to existing drillships but with a greatly enhanced drilling performance and lowered maintenance costs. As STX has exploited its experience and knowhow sprouting from the first drillship to shorten the construction period and greatly improve the quality for the second one, the company, enjoying a good evaluation for it, now stands tall with regard to next orders from the same contracting party. Noble Globetrotter II has launched its drilling operation, deployed to the oil field development project in the Gulf of Mexico from the US side starting in July, while it has secured a full score of 100 to prove its uncontested top quality in a global drillship performance evaluation disclosed by PFC Energy, the international consulting company specializing in oil & gas industry. STX Dalian renews its life as a production base equipped with a global technological competitiveness, consecutively delivering world s top-class ships. STX Dalian held the naming ceremony for the drillship Noble Globetrotter II with President Choi Sung-rak of the Offshore and Shipbuilding of STX Dalian, Vice President O Neil J. Mendoza of Noble Drilling, and others present. On the other hand, STX held the christening ceremony on July 30 th for Vale Espirito Santo, a VLOC ( Very Large Ore Carrier ). 361m long, 65m wide, and 30.5m tall, Vale Espirito Santo is the world s largest-size ship carrying 26, ton dump truck loads of ore and sailing at 14.8 knots, can load 40,000 more tons of cargo with its cargo hold increased by over 20% as compared to existing VLOCs. Vale Espirito Santo is to be delivered to STX Pan Ocean and deployed to the sea route between Brazil and China / Europe, serving for next 25 years to carry iron ore for Vale. Proving Global Competitiveness by Receiving Consecutive Orders for Vessels STX Group continues to stride amid a recession in the shipbuilding market through successfully winning orders for various vessels. STX Offshore & Shipbuilding received orders for four 45,000 DWT container Ro-Ro vessels from Ignazio Messina & C.S.P.A. of Italy on July 18 th (local time). The container Ro-Ro vessels whose orders STX received are hybrid vessels that are capable of transporting containers and automotive vehicles, and they are scheduled to be built at Jinhae Shipyard of STX Offshore & Shipbuilding and delivered in proper order between June and December Meanwhile, STX OSV received orders for two platform supply vessels from Island Offshore. The 3,800 DWT vessels with the length of 84.3m and the width of 17m are to be applied the design of UT 717 CD of Rolls-Royce. STX OSV plans to build the hulls of the vessels at Braila Shipyard in Romania and latter-half construction will be done at Brevik Shipyard in Norway, to be eventually delivered in Q4 of 2013 and Q2 of 2014 respectively. Creativity & Challenge
3 Getting a Contract for A Chemical Engineering Plant in Shanghai STX Construction got an order on July 11 th from CEPSA, a Spanish company, for the primary portion in civil engineering and construction related to a total USD 300 million-worth chemical engineering plant to be built in Shanghai, China. The project is about building a Phenol and Acetone production plant in Shanghai Chemical Industry Park (SCIP) located in Caojing near Shanghai, and STX Construction will perform the primary portion involving the civil works and construction of annex buildings related to the plant. Notably, STX Construction has captured the vantage point through the contract toward the bidding for the follow-up project in the construction of maximum 50,000-ton steel works and chemical facilities. CEPSA plans to complete the construction of the Phenol and Acetone production plant by 2013 and start commercial production with March Signing a Contract on Weather Radar Project with Korea Meteorological Administration STX Engine signed a contract for a project to replace eleven S-band dualpolarized Klystron weather radars with Korea Meteorological Administration. The project is about replacing entire single-polarized weather radars operated by Korea Meteorological Administration with highest-performance dualpolarized weather radars and an integrated network is built gradually from 2012 to STX Engine has so far developed and supplied its own navigation and special radars installed for coastal surveillance including Dok-do and naval vessels, contributing to territorial defense and eventually enhancing the status as a company that specializes in radars through this successful order. Joining the Real Estate Fair in Changxingdao, China STX Dalian, now developing 24,000 housing units of STX Dalian Shipbuilding Complex on Changxingdao in China, participated in the 1st Changxingdao Real Estate Fair held by Changxingdao Management Committee and lasting for three days from July 6 th through July 8 th. STX Dalian set up its own booth at the fair located central plaza of Santang on Changxingdao, and provided a presentation on STX Group and diverse information on the master plan, product features, and sales plan related to Haijingwian, bringing publicity to the housing value and future value differentiated for Haijingwian with its sophisticated design and events.
4 An MOU for Cooperation in LNG Technology and Project Development with KOGAS-Tech Leading the Ocean & Beyond STX Offshore & Shipbuilding entered an MOU on June 28 th with Korea Gas Technology Corporation (KOGAS-Tech) for cooperation in development of new LNG technologies and projects. The MOU makes it possible to establish a mutual cooperation system for extending joint research and development in LNG and diversifying related operations. With this, STX Offshore & Shipbuilding expects that it will combine its LNG ship and FLNG designing technology and smallscale reliquefaction facility and technology with the LNG regasification facilities designing and operating technology owned by KOGAS-Tech, to come up with new LNG-related projects and enjoy advantages in the related markets. Moreover, the MOU has enabled STX Offshore & Shipbuilding and KOGAS-Tech to speed up the development of LNG FPSO FEED technology, LNF FSRU / FSRPU technology, the development of small-size reliquefaction facility, the development of DME FPSO, and the development of new projects in oil & gas. Supporting Multicultural Families Reunion with Mothers Native Families July 12 th, opening the first phase of 2012 Gyeongnam Children of Multicultural Families Visits to Mothers Hometowns that is co-hosted by STX Welfare Foundation, Gyeongsangnam-do and Gyeongnam Education Office. Also, 79 people from 24 multicultural families with Philippine heritage are scheduled to visit their mothers homelands from August 13 th to 22 th. 36 people from 11 multicultural families with Vietnamese heritage departed for Ho Chi Minh City and Hanoi respectively after gathering at Gimhae International Airport in the afternoon of The visits to mothers native homes are a project that has integrated into one all separate projects for homeland visits by STX Welfare Foundation, Gyeongsangnam-do and Gyeongnam Education Office, to prevent overlapped support and enhance the effect of synergies for the project, beginning from this year. ROK Soldiers Experience A Cruise Ship STX Group works to support the morale of ROK military and enhance its global capacity. STX supported the invitation to a week-long cruise trip of soldiers and their family, totaling 27 persons, from its sister units of ROK Army Capital Corps, 20th Division, 1st Fleet Command. Those selected excellent soldiers joined the on-cruise training program along with the company s 21st batch of new recruits. Through STX Group s new recruits training program, the soldiers enjoyed an opportunity to visit major Chinese cities including Dalian, Weihai, Qingdao, and Shanghai, touring principal historical sites and the company s overseas operation sites located in each of the cities. Dream & Future
5 news Holding Assignment Presentations by 21st Batch of New Recruits Leading the Ocean & Beyond STX Group held STX Group Assignment Presentations by Recruits and Colleagues Night with all 21st regular recruits attending, along with Chairman Kang Duk-soo of STX Group and members of the presidential group of affiliates, at STX Mungyeong Resort on July 19 th. At the presentations, 8 teams that qualified for the second round during group training period made presentations on various ideas for the development of the group like launching new enterprises and effective recruitment of human resources. Awards were given in the order of World Best Award, Creative Award, Challenge Award and Participation Award while World Best Award was won by Team Fairy Pitta that staged a blackout fluorescent dance performance on the theme of Recruitment and promotion using STX app and created a real application. Meanwhile, in the morning on the same day, 21st regular recruits each contributed 10,000 won out of their first salaries to collect 3 million won and donated it to Gaeun High School with a certificate of scholarship. STX Recruits Scholarship that has become a distinct contribution culture for STX Group has recorded its fourth implementation and contributions are given to high schools in Mungyeong during two training periods for recruits every year. Boarding event of Voyager of the Seas, the Largest Cruise Ship Servicing Asia its Asian journey from Singapore in May, STX Offshore & Shipbuilding, Royal Caribbean International, and Korea Tourism Organization together picked fifteen couples (total 30 persons) for a day-long experience on board Voyager of the Seas. STX Offshore & Shipbuilding proceeded with the event for experiencing Voyager of the Seas, the largest cruise ship servicing Asia that arrived to Busan Port on July 19 th. Marking the arrival to Busan Port of the cruise ship that started Voyager of the Seas is a vessel that STX Europe built in 1999 and one of the world s 10 largest cruise ships and it is a 140,000-ton mega cruise ship that is capable of accommodating a total of 3,840 passengers in a space of 311m in length and 48m in width. Inside the vessel are installed diverse entertainment facilities such as an ice rink, a 3D theater and more. Address: STX Namsan Tower, 631 Namdaemunno 5-ga, Seoul, Korea / Tel: / Fax:
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