TEC was Awarded Contract for Refinery Modernization Project in South Korea

Toyo Engineering Corporation (TEC, President Toshihiko Hirose) has been awarded a contract by S-Oil Corporation of South Korea (Head Office in Seoul, affiliate of Saudi Aramco [Saudi Arabian Oil Company]) for a refinery modernization project at Onsan Refinery on the east coast of South Korea. The project involves the installation of new units such as a Vacuum Residue Hydrodesulfurization Unit (30,000 BPSD), a Hydrogen Unit (90 MMSCFD), and a Sulfur Recovery Unit (220 t/d), as well as the related Utility and Off-site facilities.
TEC's scope of work includes basic and detailed design and procurement of equipment and materials, project management, and supervision of construction. The entire project is valued at about 30 billion Yen, and is scheduled to be completed in February 2003. TEC's Steam Reforming Process will be used for the Hydrogen Unit.
This project is in response to regulations that will come into effect in June this year covering 14 major cities in South Korea requiring the reduction in the sulfur content of fuel oil. Demand of the oil product is mainly expected for central heating facilities and electric power generating facilities in the big cities. South Korea is expected to implement a further intensification of environmental protection regulations in 2003, and this project also has this factor in mind.

In 1996, TEC supplied fuel oil cracking facilities including a hydrocracking complex and a　Residual Fluidized Catalytic Cracking Unit (RFCC: 33,000BPSD) complex to the predecessor of S-Oil Corporation, Ssangyong Oil Refining Co., Ltd., and in 1997 TEC also undertook a 500,000 t/y paraxylene plant construction project for them. Thanks to TEC's good relationship with the client, established through successful construction of the said plants, and in view of TEC's excellent technical reliability, the contract was awarded to TEC.

TEC is enhancing transnational structure as one aspect of its global operational strategies. In this project, TEC intends to use Toyo Engineering Korea Limited (TEC KOREA - a local subsidiary in South Korea) as the operational base. TEC intends to expand its transnational structure to further strengthen the global business operations of TEC Group.