Korea Midland Power seeks to expand overseas projects

Korea Midland Power, an electricity provider based in Boryeong, South Chungcheong Province, is seeking to enter markets abroad, following a series of successful projects in Southeast Asia, the company announced Monday.

An affiliate of state-run power provider Korea Electric Power Corp., Komipo finished construction of a coal power plant on the island of Java, Indonesia, last year as part of a trilateral venture. The Korean company holds a 27.5 percent stake, with Japan’s largest trading company Marubeni holding a 32.5 percent stake. 

The remainder is held by South Korean coal provider Samtan and Indonesia’s Indika Group, with 20 percent each. Komipo is the first South Korean state-run power provider to have won a coal plant operation project overseas.

Under the joint venture, Komipo is entitled to operate the coal plant capable of producing 600,000 kilowatts per year for the next 30 years. The company saw 26 billion won ($24.2 million) in net profit last year from just its overseas operations. It is now looking for more large-scale overseas projects based on its experience.

“Komipo is one of the first of the nation’s power providers that has turned its eyes to the global market,” said the company’s President Park Hyung-gu. “Based on experience with energy-generation equipment, and quality human resources, we have achieved big projects so far and will lead win-win projects with South Korean small and medium-sized companies to enter foreign markets together.”

The company has been building and operating hydroelectric and solar power projects. It won hydroelectric power projects in Indonesia in a first for a South Korean company, and will be completing the construction of another plant in the Southeast Asian country in May. Through a joint venture with US-based Sunpower, the company has been investing in a solar power project capable of producing 150 megawatts a year in Nevada.

By Cho Chung-un (christory@heraldcorp.com)