news Completion of 900 MW diesel power plant construction is coming close Chairman Kang Duk-soo Visits Iraq management by wandering around
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1 STX Business Group Newsletter news World Best STX with the spirit of Creativity & Challenge No Completion of 900 MW diesel power plant construction is coming close Chairman Kang Duk-soo Visits Iraq management by wandering around The Iraqi diesel power plant project by STX Business Group is making progress without a hitch. STX Business Group signed a contract to build diesel power plants up to a total capacity of 2,500MW with the Iraqi Ministry of Electricity in May last year and began to build diesel power plants with 900MW capacity in Diwaniyah, Karbala and Missan as the first phase of the project, whose completion is scheduled in late June. STX Business Group Chairman Kang Duk-soo visited the construction site in Diwaniyah on May 6 th to offer words of encouragement for the hard work of executives and employees on the site and was briefed on the progress of the project, and then he asked them to be thorough in putting final touches on the project in the remaining period. Chairman Kang had meetings with high-ranking officials of the Iraqi government and discussed ways to expand local business and cooperate with each other. Chairman Kang met with highranking government officials including Iraqi Deputy Prime Minister Hussain Al-Shahristani, Iraqi Minister of Electricity Kareem Aftan Al-Jumaily. At the meetings, Chairman Kang expressed thanks to the Iraqi government for giving full support for the implementation of diesel power plant project underway lest it should face any obstacle. Moreover, he had an in-depth discussion about diverse ways of further cooperation concerning plant and engineering projects that the Iraqi government pushes ahead with. Meanwhile, STX Business Group that entered the Iraqi plant market for the first time as a Korean company plans to spur itself to win further orders in the Middle East market including Iraq through successfully completing the diesel power plant project.
2 news Sailing at Full Speed to Win More Orders Besides, STX Offshore and Shipbuilding has recently signed an LOI for two LNG carriers and is concurrently at final negotiations for a shipbuilding contract for an LEG (Liquefied Ethylene Gas) carrier with a shipping company in the Middle East; subsequently, if those contracts are successful, STX Offshore and Shipbuilding is expected to secure new orders worth USD 430 million in addition. STX Offshore and Shipbuilding continues to obtain a series of successful orders for merchant ships and value-added vessels. STX Offshore and Shipbuilding has received orders for two 50,000-DWT tankers from a Greek shipping company. It was followed by orders for two 6,500-CBM LPG carriers in Athens a week later. The company signed a total of USD 120 million s worth of shipbuilding contracts in May alone. STX Offshore and Shipbuilding plans to build the newly-ordered two tankers and two LPG carriers at Jinhae Shipyard and Busan Shipyard and complete their delivery by the second quarter of STX Business Group has shown strategic ways of receiving orders in step with the current trend in the market of the world s ship orders. STX has continued to obtain orders for MR (Medium Range) tankers steadily from early this year and the received orders for LPG carriers are worth USD 570 million for 8 carriers in total. With these ordered added, STX s performance of new orders in shipbuilding this year has amounted to USD 2.42 billion for a total of 45 ships. STX Offshore and Shipbuilding plans to make all-out efforts to secure more orders, focusing on European countries like Greece whose demand for such types of ships has increased, as more orders are steadily won in the area of MR tankers and value-added vessels in which STX Business Group is strong. Opening New Container Route for China-India STX Pan Ocean has operated a new service connecting China and India (CIX) since its inauguration on May 21 th. This service began on a route where K-Line, Evergreen, ZIM etc are operating and STX Pan Ocean has deployed a 4,400-TEU container for the route. The service route departs from Xingang, China and comes back after touching ports in Singapore, Malaysia, India and Sri Lanka. Nhava Sheva Xingang Tanjung Pelapas Through the expansion of the new route, STX Pan Ocean is expected to be able to fortify its influences in the container service market centering on Southeast Asia and lay the cornerstone for expanding its scope of service to ocean lines. Singapore Route : Xingang(China) - Qingdao(China) - Singapore - Tanjung lapas(malaysia) - Port Kelang, North West(Malaysia) - Nhava Sheva(India) - Colombo(Sri Lanka) - Port Kelang, North West - Tanjung Pelapas - Singapore - Xingang Creativity&Challenge
3 Successfully Conducting a Test Run of Saudi Arabian Steel Plant STX Heavy Industries has recently produced steel bars successfully at the rolling mill of a steel plant in Saudi Arabia. The steel plant that succeeded in the test rolling is a project that was ordered to STX Heavy Industries from South Steel Company in Saudi Arabia in 2009 and it is the first EPC (Engineering, Procurement and Construction) project for STX Heavy Industries to win an order for. Especially, the successful test run shows that facilities like Water Treatment Plant, Air-Compressor, Fuel Oil Supply System and etc whose capabilities should be guaranteed by STX Heavy Industries are working flawlessly. STX Heavy Industries is scheduled to finish remaining processes of steel mill and complete the plant construction in July; moreover, it plans to make further efforts to win more plant orders afterwards, based on the capability of plant building that has been proved by the successful test run of the steel plant. Participating in Expo 2012 Yeosu Korea STX Business Group publicizes the global status of Korean shipbuilding and shipping industries including STX both at home and abroad through its participation in Expo 2012 Yeosu Korea. Expo 2012 Yeosu is an international exposition held with the theme of The Living Ocean and Coast and lasts from May 12 th through August 12 th for 93 days. STX Business Group meets visitors through Cruise Exhibition inside the Ocean and Coast Best Practice Area (OCBPA) on the second floor of the Theme Pavilion which introduces the world s best policies, technologies, know-how and products, a benchmark to measure against in the field of ocean and coast. Cruise Pavilion consists of four sections such as History of Cruise Ships The World s Largest Cruise Ship - Oasis of the Seas Technology of Oasis of the Seas and Cruise Ships, Thinking of Environment. Cruise Pavilion has attracted the attention of many visitors by filling it with introduction of the body, major facilities and diverse entertainments of Oasis of the Seas through 3D video and images. Other various events to introduce cruise ships are underway as a port of call ceremony at Yeosu is held for Legend of the Seas, a 70,000-ton cruise ship manufactured by STX Europe and operated by Royal Caribbean. In addition to Cruise Pavilion, STX Pan Ocean participates in Korean Shipping and Ports Pavilion in which Korea Shipowners Association and 4 port authorities of Busan, Incheon, Ulsan and Yeosu Gwangyang Port Authority. Korean Shipping and Ports Pavilion introduces the global-level shipping industry and superb port system of Korea and presents Korean shipping and port technologies reaching out to 5 oceans and 6 continents through versatile performance on display. STX shows off its unique technologies in building cruise ships and sophisticated port operation system at Expo 2012 Yeosu Korea and the business group plans to step up efforts for technology development and promotion.
4 Leading the Ocean&Beyond Entering Chinese Ready Mixed Concrete Market in a Full-Scale Manner Dalian United Concrete, a joint-stock company co-founded by STX Construction Dalian and Dalian United Shipping (DUS), has recently held a commercial production delivery ceremony and began full-scale production of ready mixed concrete. STX Construction Dalian has supplied ready mixed concrete for construction of a shipyard and for Changxing Island by establishing a ready mixed concrete factory in STX Dalian General Production Park from August 2007; furthermore, it now has a large-scale production capacity of 7,000m 3 in total per day. Awarded on The Ocean Day President Pae Seon-ryeong of STX Pan Ocean and Captain Kim Hyeon-yul of Araon of STX Marine Service received the Order of Industrial Service Merit at a ceremony marking the 17th The Ocean Day held at Korea pavilion at Expo 2012 Yeosu Korea on May 31 th. President Pae Seon-ryeong of STX Pan Ocean won the Silver Tower Order of Industrial Service Merit for contributing to enhancing the image of Korean shipping companies by providing a variety global shipping services across the board, based on rich experience and operational know-how, since his inauguration as CEO of STX Pan Ocean in March Captain Kim Hyeon-yul of STX Marine Service, in charge of Araon, was awarded the Tin Tower Order of Industrial Service Merit for making a big contribution to improving good-will relations with Russia and enhancing national status through successfully rescuing the Russian fishing boat Sparta that was shipwrecked in the Ross Sea in the South Pole. (L) Won the Silver Tower Order of Industrial Service Merit, STX Pan Ocean President Bae Seon-ryeong (R) Awarded the Tin Tower Order of Industrial Service Merit, STX Marine Service Kim Hyeon-yul Captain of Araon Supporting the highly Talented in Energy and Power Generation STX Energy, City of Samcheok, and Kangwon National University have signed an MOU for uncovering and rearing regional talents on May 1 st at Samcheok City Hall. The MOU was drawn up in order for business, municipality and university to put together their resources establish an action plan for growing tailored talents and creating job opportunities, as part of the process for reinforcing cooperation and mutual support with the local community, while the involved parties are pushing forward with the creation of Green Energy Industrial Park in Samcheok. Based on this MOU, STX Energy will contribute to the development of the Samcheok region and enhanced employment and will make sustained efforts to secure specialized human resources necessary for running Green Energy Industrial Park. Dream&Future
5 news Supporting the ROK Armed Forces Leading the Ocean&Beyond activities by visiting the soldiers on the post minimum once a year and throwing a jobs workshop for soldiers who are planning their future life. STX is now involved in an all-out support for the nation's military soldiers. STX Corporation became the first of the affiliates of STX Group to set up a one-company-to-one-post sisterhood with the Capital Corps of the ROK Army located in Anyang on May 3 rd. With this, STX Corporation will engage in diversified supportive And as the only domestic builder of cruise ships, STX will send a yearly invitation to excellent soldiers and their commander to a cruise and support the remodeling of on-post libraries or recreational rooms into book cafes to improve the facilities for reading and learning, all part of the program to enhance soldiers cultural life. Besides, the company is pushing for a good will match between STX SOUL, the team of progamers, and soldiers to boost their morale. Since its establishment, STX has been actively engaged in defense industry to build the national defense capability. Aside from the business involvement, the company has continued to work for increased civilian-military cooperation, implementing various support programs for the ROK Armed Forces. With this sisterhood, STX is pushing to extend its support program to engage other affiliates of the Group. Delivering An Orchestra as A Gift to Dalian STX Dalian successfully presented the 6th regular concert for Dalian Youth Orchestra to an eager audience. The concert was held at the National Centre for the Performing Arts (NCPA) with 1,260 seat accommodation, run by the Chinese government inside the Dalian Development District, as a cultural performance for 200 or so students invited from rural areas on the outskirts of Dalian. Dalian Youth Orchestra was organized in 2008 by Kim Joon, Customs Affairs Team Leader of STX Dalian, has held two regular concerts each year in Dalian area and worked for cultural growth in Dalian community, continuing to engage actively in Korea-China cultural exchange. Appointed Trustee for A Saudi University Chairman Lee Hee-beom of STX Heavy Industries and STX- Construction had the honor to be appointed trustee for a Saudi university. Chairman Lee was selected as a new member of International Advisory Board (IAB) of King Abdulaziz University (KAU). IAB appointed Chairman Lee, apparently mindful of the fact that STX Group is pushing for new business projects in Middle East, and appreciating Chairman Lee s track record formerly as ROK Minister of Commerce, Industry and Energy and Chairman of Korea International Trade Association, and currently as Chairman of the Korea Employers Federation. Chairman Lee will begin his diverse activities for the development of KAU by attending the IAB meetings. Address: STX Namsan Tower, 631 Namdaemunno 5-ga, Seoul, Korea / Tel: / Fax:
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