Rotary Engineering secures USD 34m contract to build storage tanks for power plant project in Saudi Arabia "This is a strategic win for us and is another affirmation that our strategy to capitalise on our presence in Saudi Arabia is bearing fruit. We are hopeful and optimistic that more opportunities will open to us as we continue to fortify our presence in Saudi Arabia," said Mr Chia Kim Piow, Chairman and Managing Director SINGAPORE, 14 February, 2012 - MAINBOARD-LISTED Rotary Engineering Limited (Rotary) has secured a US$34 million Engineering, Procurement and Construction (EPC) contract to build 17 field storage tanks in Saudi Arabia.

The contract relates to the US$1.23 billion Shoaiba II Combined Cycle Power Plant Project in Shoaiba, some 120 km south of the Red Sea city of Jeddah. It was awarded to Rotary's joint venture company Petrol Steel Co. Ltd. by South Korea's Daelim Group, which is the main contractor for the project. The combined-cycle plant, which is owned by the Saudi Electricity Co, will have a power capacity of 1,238 megawatt when completed.
The contract will see Rotary building 17 field storage tanks which will primarily be used to store fuel oil. Work is scheduled to start in June and is expected to be completed around the middle of 2013.
Mr Chia Kim Piow, Rotary's Chairman and Managing Director, said: "This is a strategic win for us and is another affirmation that our strategy to capitalise on our presence in Saudi Arabia is bearing fruit. We are hopeful and optimistic that more opportunities will open to us as we continue to fortify our presence in Saudi Arabia"
"As we continue to build our reputation and track record in Saudi Arabia, we are confident that we will be able to convert more tenders into contracts over time," added Mr Chia.
Rotary is a leading provider of engineering, procurement, construction and maintenance services serving the Oil & Gas and Petrochemical sectors.
It entered the Middle East market in 2006 and gradually made its presence felt, starting with small projects. It firmly established itself as a serious player there when it secured a US$745 million EPC contract to build a refinery tank farm in Saudi Arabia for Saudi Aramco Total Refining and Petrochemical Company (SATORP), a joint venture between Saudi Arabian Oil Company (Saudi Aramco) and Total S.A. (Total), for its Jubail refinery in 2009. Momentum gathered and the following year, in 2010, it clinched a contract worth an estimated US$250 million to build a petroleum storage facility with a capacity of 1.1 million m3 in the United Arab Emirates.
Apart from the Middle East, Rotary is also firmly ensconced in Asian markets, namely, Singapore, Indonesia, Malaysia, Thailand, China and India.
Indeed, over the last several months, it has chalked up more than S$100 million worth of contracts, comprising projects in Singapore as well as the region. Noteworthy projects in Singapore that Rotary is currently undertaking include the petrochemical plant on Singapore's Jurong Island that is owned by Taiwan-based Chang Chun Group and a tankage project undertaken for Samsung C&T Corporation relating to a power plant project by GMR Group, which is a Bangalore-headquartered global infrastructure major with interests in the airports, energy, highways and urban infrastructure.
Mr Chia said that Rotary will continue to engage the market and stay alert to new and interesting business ideas and opportunities, in Singapore, the region and further afield. Rotary had said earlier that it was open to take equity stakes in oil terminals and other potentially viable projects.
For the nine months ended 30 September 2011, the Group registered a profit after tax attributable to parent of S$22.7 million compared to S$37.8 million a year ago, on the back of revenue of S$401.1 million.
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About Rotary Engineering Limited (www.rotaryeng.com.sg)
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