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Friday, March 29, 2024

EEI, Hanjin sign partnership deal on construction

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EEI Corp., one of the largest construction companies in the Philippines owned by the Yuchengco group, said it formed a strategic alliance with Hanjin Heavy Industries & Construction Co. Ltd. of South Korea.

EEI said in a disclosure to the stock exchange it formed a partnership with HHIC for upcoming construction projects.  No other details were provided by both companies regarding the deal.

EEI successfully participated in numerous infrastructure, electromechanical and building projects, with substantial operations in the Philippines and other countries.

HHIC, meanwhile, has completed more than 100 construction projects in the Philippines since 1973.

HHIC’s local unit Hanjin Heavy Industries & Construction Philippines Inc. in January this year filed a petition for rehabilitation with the Olongapo City Regional Trial Court over its failure to meet financial obligations with creditor banks.

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The creditor banks of HHIC-Phil are now in the process of converting the debts into equity.

Both EEI and HHIC previously worked together on projects including Berth 6 of Manila International Container Project. The joint venture partnership with HHIC is the second strategic alliance formed by EEI since June.

Last week, the 88-year old construction company signed a partnership agreement with Showa Leasing Co. Ltd. of the Shinsei Bank Group and Saiga Co. Ltd. of Japan.

Showa Leasing is a respected player in the equipment finance space which aims to expand its business overseas while Saiga and is a leading crane rental company with operations worldwide that also looks to expand its presence in the Philippines.

“The parties have agreed to set up a new Philippine based joint venture corporation primarily for the purpose of managing new and second hand construction equipment with the vision to expand its services to Southeast Asia,” EEI said.

EEI is also co-owner of several joint venture firms including Al Rushaid Construction Company Ltd. which has projects in Saudi Arabia; Petro Solar Corp. for the operation of the 50-MW Tarlac Solar Power Project; and Petro Wind Energy Inc. which engages in the general business of generating and distributing power from renewable energy sources.

Share price of EEI closed flat at P11 on Friday.

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