Samsung Firms Cancel $2.5 Billion Kazakhstan Power Plant Project
South Korea’s Samsung C&T Corp and Samsung Engineering Co Ltd have decided to terminate a thermal power plant project in Kazakhstan worth a combined 2.8 trillion won ($2.50 billion), the companies said in regulatory filings on Thursday.
The companies in December 2014 announced the joint construction of the Balkhash Thermal Power Plant, a 1,320 megawatt coal-fired power plant in Ulken, Kazakhstan. In the regulatory filings, Samsung C&T and Samsung Engineering said in they have terminated the contract as of Wednesday.
A Samsung C&T spokeswoman told Reuters the company decided to drop the contract as factors such as low oil prices and a delay in regulatory approval undermined the business rationale.
Samsung C&T said in another filing that it exercised a put option for its stake in the power plant’s joint stock company, that placed the construction order to the Samsung companies, to state-owned Samruk Energy for $192.5 million.
($1 = 1,121.8500 won)