The company laid groundwork for expanding into Africa.
STX, an affiliate of STX Group for trading business, concluded contracts for drinking water development projects and operation and maintenance of diesel-fired power plants in Africa in total value of $60 million. STX Group is currently shaping up restructuring framework.
STX said on August 27 that it won these projects from Congo and Guinea. Under the contracts, the company will export 30 drilling machines for tube wells while supplying equipments and constructing water-purifying facilities for exploring drinking water in 1,500 regions in Congo. And it will conduct the project of operating and maintaining 24MW diesel-fired power plant and supply equipments for 76MW diesel power plants in Guinea.
These contracts are meaningful in that they will serve as a foothold for increasing its presence in African countries, which are expected to make continued growth. The company set up groundwork for expanding drinking water development projects in African countries by taking part in the ‘Water for Everyone’ program of the Congo government, jointly with a partner in Brazil.
As its first contract for operating and maintaining a power plant in Africa, the 24MW diesel-fired power plant project in Guinea is expected to trigger its expansion into diesel power plant operation and maintenance markets in Africa.
STX aims at receiving orders for additional drinking water development projects in Congo in value of $25 million, and is seeking to win contracts for additional supply of equipments and operation and maintenance service for 76MW diesel-fired power plant in Guinea in value of $10 million. When it wins these additional projects, the total amount of contracts in Africa will reach $95 million.
President Chu Seong-yeob of STX said, “Now that it concluded contracts for developing drinking water and operating and maintaining diesel-fired power plants in African countries, the company will exert more effort to create new business opportunities in Africa. The company is committed to successfully pushing forward restructuring effort of STX Group by sharpening competitiveness and developing new business models in the trading division.”
Source : e2news