Embattled STX Marine Service Co. Ltd, whose parent firm is 40-percent owned by Korea Development Bank, brushed aside on Sunday claims of having won contracts from state-run Power Sector Assets Liabilities Management (PSALM) Corporation by irregular means.
Jang- Yu Son, vice president and head of the Philippine branch of STX Marine Service Co. Ltd, said in a statement it has existing agreements with PSALM Corp. that it won fair and square in a public bidding process.
Son said STX Marine has a service contract for the operation and maintenance of the 650-megawatt Malaya Thermal Power Plant and the overhauling of the power plant’s Unit 1 turbine.
Son said the two contracts have performed well and are compliant with and responsive to all terms and conditions set forth in their respective contracts with PSALM.
STX Marine, he said, has succeeded in the localization of its operations and has fostered a cooperative relationship with the Malaya staff.
“Although a complaint was filed recently by local staff due to the cultural differences between Korean technical management and local staff, that has already been resolved and the good relationship has been recovered with hearty support from the local staff,” Son said.
On the overhauling work for Unit 1 of the Malaya power plant, Son said it was a very challenging project due to high potential risk and the occurrence of fortuitous events.
“No one and not even the asset owner can determine the extent of the damage of the turbine, including the overhauling period needed, since it has not been opened and overhauled for 17 years,” said Son of one of the contracts.
Nevertheless, Son said STX Marine applied best practices that accomplished the turbine’s overhauling without any damage to the equipment.
The Malaya Thermal Power Plant is now ready to provide emergency power supply to the main grid.
Son said STX Marine Service is qualified to undertake the projects as it is a specialized service company founded purposely to provide integrated total services with technical experts who have cumulated experience and technology.
STX Group used to own several power plants in Korea, such as the Banwol 174-MW and the Gumi 97-MW thermal power plants. A PSALM technical working group visited the plants just last year. STX Marine, as one of its affiliates, shared technical knowledge and experience for the operations and maintenance and overhauling.
In addition, STX Marine Service has carried out various power plant operations and maintenance as well as overhauling work from 2012 up to the present in Iraq, the Philippines, Brazil, and other countries.
STX Group was one of largest conglomerates in Korea until it was downsized and undergo a major restructuring due financial losses suffered by some of its subsidiaries and affiliates.
In 2014, Korea Development Bank (KDB), wholly state-owned policy bank in South Korea, became the largest shareholder (with 39.64%) of STX Corp. which is the mother company of STX Marine Service.
STX Marine Service as an independent subsidiary of STX Corp. has never applied for bankruptcy and has maintained a stable and sound financial status since its establishment.
It has entered Philippine electric power market for the long term and vowed to contribute to the supply of reliable and affordable electric power with a reasonable price under fair competition in the country.
STX Marine Service is looking for opportunities to extend its services and is poised to invest in the electric power businesses in the main as well as the small and isolated islands of the Philippines such as in Marinduque and Palawan.
It has done its utmost to comply with the conditions of its contracts with PSALM Corp.