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Samsung Heavy Industries

South Korea

 

 

Date: July 1999 – October 2002

Deal: In July 1999, according to the company's website, the National Iranian Oil Company (NIOC) and Petropars awarded Samsung Heavy Industries a 28-month contract for the South Pars Phase One Development Project. The project was completed in October 2002 (Samsung Heavy Industries Website, 2009).

According to Samsung's corporate website, the project was to build an offshore gas production plant worth $200 million (Samsung Website, accessed July 19, 2010).

Date: 2005 - 2009

Deal: In March 2007, Reuters reported that the National Iranian Tanker Company (NITC), a subsidiary of NIOC, expected to receive 13 supertankers in the next two years from a variety of South Korean shipbuilding companies, including Samsung Heavy Industries Co., Hyundai Heavy Industries Co., Hyundai-Samho Heavy Industries, and Daewoo Shipbuilding and Marine Engineering Co. Ltd (Reuters, March 12, 2007).

According to Bloomberg, NITC had originally ordered "13 supertankers able to carry 2 million barrels each from shipyards in South Korea and four 1-million-barrel tankers" in 2005 (Bloomberg, September 23, 2005).

U.S. Business Ties: According to USASpending.gov, Samsung Heavy Industries received $87,049,588 in U.S. government contracts between FY 2001 and 2013, from the U.S. Navy (USASpending.gov, accessed July 7, 2014).

In a press release in May 2009, Cielo Wind Services Inc. announced that it had made a deal with Samsung Heavy Industries and Texas Wind Power Co. to install and operate three of Samsung's 2.5MW wind turbines near Lubbock, Texas. The project, to be called the Lubbock Wind Ranch, is set to begin construction in 2010 and the turbines are expected to be fully operational by 2011. The press release also stated that "Samsung plans to provide commercial wind turbines to the North American market beginning in 2011" (Cielo Wind Services Inc. Press Release, May 8, 2009).

In 2009, Forbes reported that Samsung Heavy Industries had teamed up with U.S. company Utopia Residences of Beverly Hills to build the largest passenger ship ever built. The Utopia will also be one of the most luxurious ships in the world, and passengers will have the option to buy their cabins, which range in value from $3.9 million to $160 million (Forbes, December 1, 2009).

According to Reuters, the deal was worth $1.1 billion. Samsung expects the final contract to be signed in early 2010 and the ship to be completed by 2013 (Reuters, November 30, 2009).

Last Updated: August 13, 2014