Daewoo Engineering & Construction (047040) has won the contract to build the first section of the Yongin advanced system semiconductor cluster national industrial complex, the site of Samsung Electronics' first chip fabrication plant there. Daewoo's share of the work alone is worth 416.9 billion won.
The builder said in a regulatory filing on the 28th that it had been notified of its selection as the winning bidder for section 1 of the Yongin advanced system semiconductor cluster national industrial complex development project ordered by Korea Land & Housing Corporation (LH).
The total bid came to 868.6 billion won, excluding value-added tax, according to the filing. Daewoo Engineering & Construction holds a 48% stake in the consortium and will carry out about 416.9 billion won worth of construction. The company teamed up with Namkwang Engineering & Construction, Joongheung Construction and Samho for the project. Stakes are split 48% for Daewoo, 40% for Namkwang, 7% for Joongheung and 5% for Samho.
The project involves laying the groundwork for the national industrial complex being developed in the Idong-eup and Namsa-eup areas of Yongin's Cheoin-gu district, Gyeonggi Province. Section 1 includes the planned site for the first of the chip production lines Samsung Electronics will build at the complex. The Yongin national industrial complex is a large-scale chip industrial park the government is pursuing to strengthen the competitiveness of the system semiconductor industry, and the project has drawn keen attention as preparatory work for the fab construction to come.
LH ordered the section 1 development work in July under a construction manager at risk (CMR) arrangement. The estimated price at the time of the order was about 987.2 billion won, or about 1.0859 trillion won including value-added tax. The Daewoo consortium's actual bid was set at 868.6 billion won.
Daewoo Engineering & Construction plans to begin site development work in earnest after signing the main contract with LH. In the filing, the company said the project is at the stage of notification of winning bidder selection and that terms could change during the contract signing process.
