Creativity and Technology

Samsung C&T Corporation was originally founded in 1938 and is the predecessor of Samsung Group, which has been a driving force behind the rapid growth of the Korean economy. Senior Marketing Manager of Samsung C&T in the UAE, Mr Min Hwan Jeong, tells Gemma Carter about the company's outstanding achievements in the Emirates, and plans to further increase its footprint in the region.

Since its nomination as the first ever General Trading Company in Korea in 1975, Samsung C&T has been conducting complex trading and investment operations. With the merger of Samsung E&C, in 1995, Samsung C&T now balances the two business units of Engineering & Construction and Trading & Investment, and has more than 9,000 employees in 48 countries. The UAE branch of the organisation was established in Abu Dhabi in 2000, when the name of the company was still Samsung Corporation. “It was only in 2008 that we became known as Samsung C&T Corporation,” Mr Jeong explains. “Our new name identifies the company's two major areas of expertise – Construction and Trading. The letters C and T also incorporate the concepts of ‘Creativity’ and ‘Technology’, to express our challenging spirit and determination to provide the best service.”

Quick off the mark

Soon after the company's establishment in the UAE, it began tendering for and winning landmark projects, as Mr Jeong recounts: “In 2001, we won a prestigious project in Abu Dhabi, which was the new ADIA (Abu Dhabi Investment Authority) headquarters, and we completed this project in 2006. Then, in 2004, we won the contract to build the Burj Khalifa (which was known as the Burj Dubai at the time), on behalf of Emaar Properties. We commenced work on the project in 2005, and the skyscraper was completed in 2009. It is currently the tallest man-made structure ever built, and we are extremely proud of our involvement in the project.

“In 2007, we won another building project from Emaar, to manage the construction of Boulevard Plaza, which stands at the gateway into the Burj Khalifa development. In the same year, we won the Palm Jebel Ali Main and Crescent Bridges project, from Nakheel Properties, on a design and build basis. A special point worth noting about this project is that Nakheel awarded us the contract without us having to tender for it. The US$350 million project involved the construction of six of the eight bridges connecting the Dubai mainland to the palm tree-shaped island's trunk and crescent sections.”

In late 2008, the global financial crisis reached Dubai, and the company was unable to find any more projects in the Emirate. “Instead, we decided to focus on the Abu Dhabi market, and proceeded to win the Al-Salam Street Tunnel project from Abu Dhabi Municipality,” Mr Jeong tells us. “We are working on this project in a joint venture with Saif Bin Darwish. Last year, we won another large-scale construction project, called Cleveland Clinic Abu Dhabi (CCAD). This project is worth US$1.3 billion, and we are conducting the work in partnership with BESIX. The client is Mubadala Healthcare, a business unit of Mubadala Development Company and Aldar Properties.

“So far this year, we have won the contract to build a deep sewage tunnel in Abu Dhabi, called the Deep Tunnel Sewerage System (DTSS). The client is Abu Dhabi Sewerage Services Company (ADSSC), and we have been selected to design and build a 16-kilometre portion of the 41-kilometre DTSS, as well as four operating shafts and three access shafts. These are some of our most notable building and civil projects,” he notes, “but we are also capable of executing plant projects. In 2008, we won a DCP (district cooling plant) project on Yas Island, which we completed for Tabreed, and, in 2007, we were selected to build an OCU (Olefin Conversion Unit) plant in Ruwais.”

Multi-disciplined construction

As already mentioned, Samsung C&T comprises two major business units – Trading & Investment and Engineering & Construction – and the construction arm can be further subdivided into four business sectors: Building Works, Civil Works, Plant Works and Housing Works. Due to the substantial nature of many of its projects, particularly in the building and infrastructure segments, the company often collaborates with local partners. “For building projects, we collaborate with Arabtec and BESIX,” Mr Jeong reports, “and for infrastructure projects, we partner with Saif Bin Darwish. We have many partners in the UAE, and whenever we form a partnership in order to execute a project, it is always an integrated joint venture, which ensures the greatest level of efficiency.

“In the Building sector, we can provide technological expertise and experience in the construction of high-rise, mixed-use projects, such as the Burj Khalifa and CCAD. In addition, we are tendering for the construction of the UAE's first Four Seasons hotel, which is due to be built on Sowwah Island, Abu Dhabi, and we are participating in the new airport terminal being built in Abu Dhabi. We also tendered for a stadium project, but this project has been put on hold.”

In the Civil Works sector, Samsung C&T is active in large-scale infrastructure projects, such as roads, railways and bridges. “A good example of our capabilities in this field is the Al-Salam Street Tunnel Project,” he asserts, “which is set to enhance traffic flow in the city centre of Abu Dhabi, and will prepare the city for the eventual occupancy of new developments on Reem and Sowwah Islands. We are also participating in the tender for the Shah–Habshan railway line, which is part of the Etihad Rail project, the UAE's planned national rail network.

“Our company has been successfully implementing petrochemical and power plant projects for many years, and this expertise also extends to the UAE. In 2008, we won the contract to build the Shuweihat 2 IWPP (independent water and power project) in Abu Dhabi, on an EPC basis. Then, at the end of 2009, we succeeded in winning a construction contract for the US$40 billion Abu Dhabi nuclear power plant project, the first nuclear plant to be built in the UAE.”

Engineering the tallest building

The company operates a large workshop in the Sharjah area, where it stores all of its materials and equipment, and in Ruwais it has a pipe shop, which is equipped with overhead cranes, welding machines and other heavy equipment. “In Abu Dhabi, we have a pre-cast beam workshop, and in Jebel Ali, we have a large pre-cast yard,” adds Mr Jeong. “In terms of manpower, we employ around 1,000 labourers and 600 staff, including a wide variety of skills and expertise, and talented individuals from Korea and around the world. Our day-to-day training focus is set firmly on safety in the workplace, but Samsung C&T as a whole runs numerous carefully selected training and development initiatives. These include a one-year practical training programme for newly hired employees, which is aimed at instilling into them the Samsung core values and corporate culture, as well as providing practical knowledge; specialised training for technical jobs and office jobs, which helps employees to become the best in their field; internships, MBA programmes and regional expert nurturing programmes; and foreign language courses.”

Mr Jeong stresses that the company's workforce – and particularly its engineers – is one of its fundamental attributes. “Our main strength is that we have many experienced engineers, with skills in every type of building, civil and plant project,” he enthuses. “We never stop trying to recruit high-quality engineers, because we believe that good engineers are the key success factor in any construction business.

“In addition, we are known for using high technology to execute challenging projects. For example, in building the Burj Khalifa, we set a record in the utilisation of concrete pumping technology, when we pumped concrete to a delivery height of 601.7 metres – the 156th floor.” The previous record was set during the extension of the Riva del Garda Hydroelectric Power Plant in Italy, in 1994, when concrete was pumped to a height of 532 metres.

Samsung C&T also used special, high-density concrete, which was essential in withstanding the extreme pressures of the skyscraper's massive weight. The consistency of the concrete was equally important, and it was difficult to create a concrete that could withstand not only the thousands of tonnes bearing down on it, but also temperatures that can reach highs of 50 degrees Celsius. To combat these problems, the concrete was not poured during the day. Instead, during the summer months, ice was added to the mixture and it was poured at night, when the air is cooler and the humidity is higher. A cooler concrete mixture cools evenly throughout, and is therefore less likely to set too quickly and crack. Any significant cracks could have put the entire project in jeopardy.

A focus on mega projects

“There is still a shortage of contracts in Dubai,” Mr Jeong observes, “which has led most contractors to look for work in Abu Dhabi. This has made it very tough to compete – for every project, more than 10 contractors participate in the tender, so it is not easy to win new projects. Nevertheless, we are prepared to compete with other companies, especially for EPC projects, which are our speciality. In the last few years, we have learnt to concentrate on large-scale projects, and this is how we intend to proceed into the future. We are currently tendering on the general construction contract for the Midfield Terminal Building (MTB), which was released by Abu Dhabi Airports Company (ADAC) in March this year.” The MTB will form the centrepiece of Abu Dhabi International Airport's redevelopment, and will have an initial capacity of 27–30 million passengers per year. As an important component of Plan Abu Dhabi 2030, the terminal is set to be one of the world's largest and most architecturally iconic structures.

“As I mentioned, we are also getting involved in the Shah–Habshan railway,” he continues, “which is a huge project. We are taking part in the tender for the civil and track works portion of this project, which comprises the design, procurement, construction, testing and commissioning, on a design and build basis, of all assets relating to the completion of the project. Construction of the railway is expected to commence at the end of this year, following the announcement of award of the tendered contract.”

The company is also considering the possibility of investing in certain projects as a developer as well as a contractor. “We have already invested in one power plant, and we are likely to make further investments in the years ahead,” states Mr Jeong. “In terms of our geographical footprint, Samsung C&T also has branch offices in Saudi Arabia and Qatar, and we are currently implementing a new branch in Kuwait. Moreover, we are looking for opportunities in Africa – we already maintain a branch office in Cairo, Egypt, and we recently established an office in Algeria,” he concludes.

As the main contractor behind a bulging portfolio of remarkable and epoch-making projects, including the tallest building in the world, Samsung C&T is not likely to begin resting on its laurels, as it continues with its bid to become the world's best construction company.