Ecuador is diversifying its energy sources, which spells huge contracts for companies with the knowledge and experience to handle these megaprojects.

Dae Ho Kim
President & CEO
Jorge Elizagaray
Acero de los Andes

What is your focus of attention?

DAE HO KIM SANTOS CMI is unlike other construction companies in Latin America. Of our staff of about 500 people, 250 have engineering qualifications. We operate in many fields, and are active in engineering and construction projects, and have a procurement office in Houston. SANTOS CMI focuses not on general civil engineering, but rather on refineries or complex multidisciplinary plants. In Ecuador, we have built many power plants, having participated in the refinery in Esmeraldas and also in the Petroecuador and Petroamazonas projects. Nowadays, we are designing and building an LPG distribution plant.

JORGE ELIZAGARAY We are an Ecuadorean company established in 1973 with 95% local capital. Rooted in the oil business, Acero de Los Andes is proud to have been the first to manufacture an oil tank on the Peninsula de Santa Elena in 1978. In recent years, Petroecuador has hired us for some of its upstream and downstream activities. The company has also participated in numerous other projects, such as the Paute Mazar hydroelectric project. We have also manufactured the hull of a ship to be used for sightseeing on the Amazon. We are building private plantation equipment, for clients such as Azucarera Valdez. Furthermore, a key objective for Acero de Los Andes is involvement in Ecuador's hydroelectric projects.

In 2011, you signed a strategic alliance with POSCO. What was thinking behind this association?

DHK POSCO E&C is part of the POSCO group of companies, and is the fourth largest steel company in the world. It is the only company capable of building an entire steel complex from engineering through to construction. The company is specialized in energy and in producing steel for construction, as well as engineering, procurement, and construction (EPC) companies. With the largest operation in Latin America, it has completed successful projects including a large coal-fired power plant and four power plants in Chile. Its Angamos project was selected in October 2012 as “Plant of the Year" by Power magazine.

How do you view Ecuador's changing production matrix?

JE The Chamber of Industry and Production has submitted the, “Second Proposal for Ecuador: Public Policy for Sustainable Development." This document is a roadmap for the sector to partner with government by establishing permanent links. The benefits to be gained from the change in the production matrix include further job creation and greater opportunities for tomorrow's university graduates, with much effort being made nationally on this front.

How many projects does SANTOS CMI have internationally, and do you expect to enter new markets or countries?

DHK Santos CMI has around 150 projects within 18 Latin American countries, including Ecuador. We have completed major projects in Chile, Peru, Colombia and Brazil, and are now the exclusive developers of power plants in the Dominican Republic. So far, we have specialized in power, mining, and oil and gas treatment and production, but are considering new technology, such as a fertilizer plant and gas transmission. We are keen to expand to renewable energies such as photovoltaic, energy storage, and wind-power.

Do you provide other products or services to the private sector?

JE We are participating in a wide array of Ecuador's most prestigious projects, such as the new airport in Quito, where we produced the entire fueling system. Our main strength is versatility, and are looking to enter the mining sector. Our main customers include Repsol, Schlumberger, and Halliburton. Yet, our substantial excess capacity is where the change in Ecuador's productive matrix will come into its own.

What opportunities can the new tenders in the Amazon bring to SANTOS CMI?

DHK Many oil wells will be developed, and investors can look to us for technical solutions to the construction of oil wells, piping systems, treatment, and refining.

What main opportunities do you foresee?

JE As entrepreneurs, we are always optimistic. Today, we are constructing a new industrial facility, and I feel better than ever about our business prospects.