Companies in Saudi Arabia and South Korea sign contracts worth $30 billion – Minister | Jobi Cool

SEOUL/CAIRO, Nov 17 (Reuters) – Saudi Arabia has signed investment deals worth about $30 billion with South Korean companies, Saudi-based Asharq TV quoted the kingdom’s investment minister as saying on Thursday.

The deals come as Saudi Arabia’s Crown Prince Mohammed bin Salman visited Asia’s fourth-largest economy, where South Korean President Yoon Suk-yeol is due to hold talks with him later in the day.

Companies including Samsung C&T Corp ( 028260.KS ) and POSCO Holdings Inc ( 005490.KS ) have signed more than 20 deals with their Saudi counterparts in fields such as energy cooperation, railways, chemicals, pharmaceuticals and games, the South’s industry ministry said. Korea in a statement. on Thursday.

Asharq TV also cited the Saudi Venture Capital Company as saying it has agreed to establish seven specialized funds.

Among the deals, Korea Electric Power Corp (KEPCO) (015760.KS) and four other Korean companies signed a memorandum of understanding with Saudi Arabia’s Public Investment Fund to build and operate a hydrogen and ammonia production plant in the kingdom, the company said. .

The project will cost about $6.5 billion, said a source with knowledge of the deal, who was not authorized to speak to the media on the matter and declined to be identified.

The plant is expected to produce 1.2 million tons of green hydrogen and ammonia annually, KEPCO said. It is to be built between 2025-2029 and operate for 20 years, Yonhap news agency said Thursday, citing industry sources.

Another pact is Hyundai Rotem Co’s ( 064350.KS ) memorandum of understanding with Saudi Arabia to cooperate on a railway project for the Middle East’s $500 billion NEOM economic zone, the ministry said. It did not disclose the potential dollar amount of this deal.

“The (South Korean) government will actively support the successful implementation of collaborative projects that apply Korea’s latest architecture … in the NEOM smart city,” said South Korean Trade Minister Lee Chang-yang.

Shares in Hyundai Rotem rose 8.5%, versus a 1.1% decline in the broader market (.KS11). Shares in Lotte Fine Chemical ( 004000.KS ), which signed a chemical industry cooperation agreement with Saudi Arabia’s investment ministry, rose 2.1%.

Also, S-Oil Corp ( 010950.KS ), whose largest shareholder is Saudi Arabian Oil Co (Saudi Aramco) ( 2222.SE ), said it plans to invest a total of 9.3 trillion won ($7.0 billion) in its Ulsan plant to produce higher value petroleum products.

($1 = 1,337,7100 won)

Reporting by Joyce Lee and Heekyong Yang in Seoul and Moaz Abd-Alaziz and Ahmed Tolba in Cairo; Editing by Christopher Cushing and Tom Hogue

Our standards: Thomson Reuters Trust Principles.

Source link