STX Marine Service denies irregularity with Psalm contracts

With reference to the news published with incorrect information, STX Marine Service would like to express the expatiation as follows;

Contract with Psalm

STX Marine Service has made two (2) contracts with Psalm such as follows 1.) MTPP Operation Maintenance Service Contract (Project Reference No. 2014-OMSC-MTPP-A026-01) and 2.) Overhauling of Unit1 Turbine (Project Reference No. 2014-MTPP-U1OH-A034-01) and have been performing well, compliant with and responsive to all terms and conditions set forth in their respective contracts with Power Sector Assets Liabilities Management Corporation of the Philippines (PSALM).

Financial condition

STX Group was one of largest conglomerate in Korea until it was downsized and undergone major restructuring due financial losses suffered by some of its subsidiaries and affiliates.

The creditors led by Korea Development Bank (“KDB”, wholly state-owned policy bank in South Korea) and STX Corporation, the financial holding entity of the group entered into Voluntary Business Normalization Program (“VBNP”) agreement which pave the way for a “debt-to-equity swap” making KDB the largest and major shareholder of STX Corporation.

STX Marine Service as an independent subsidiary of STX Corporation have never applied for bankruptcy and have been maintaining stable and sound financial status since its establishment.

Qualification

STX Marine Service is a specialized service company founded purposely to provide integrated total services with technical experts who have cumulated experience and technology.

As STX Group used to owned several power plants in Korea such as amongst many are Banwol 174MW and Gumi 97MW thermal power plants (these plants were visited by Psalm TWG Post Qualification team last year), STX Marine Service is one of its affiliates has shared technical knowledge and experience for O&M and Overhauling. STX Marine Service carried out further the various power plant O&M and Overhauling from 2012 in Iraq, Philippines, Brazil, and other countries.

Implementation of contracts

Operation & Maintenance Service for Malaya 650MW Thermal Power Plant: Cultural differences between Korean technical management engineers and local staffs likely existed in the initial stage but currently, STX Marine Service has succeeded in localization and had fostered cooperative relationship with the majority of Malaya staffs. Complaints filed by local staffs are not caused by our technical skills but treatments for them due to cultural differences and those have been resolved already.

Overhauling Work for Unit-1 of Malaya 650MW Thermal Power Plant was very challenging project due to high potential risk and fortuitous event.

No one and not even the asset owner can determine extent of the damage of the turbine including the overhauling period needed since it has not been opened and overhauled for 17 years.

Nevertheless, STX Marine Service applying the best practices hasaccomplished overhauling work without any damage creditably with the cooperation of competent subcontractors who are well-experienced in the overhauling work of steam turbine through proper and safe procedure. Malaya Thermal Power Plant is now ready to provide emergency power supply to the main grid.

STX Marine Service has entered Philippine electric power market for long term aiming to contribute to the supply of reliable and affordable electric power with reasonable price under fair competition in the Philippines.
STX Marine Service is looking for opportunities to provide its services and poised to invest on electric power businesses in main islands and especially small and isolated islands of Philippines such as Marinduque and Palawan.

STX Marine Service has been making utmost effort in compliance provisions of PSALM and conditions for contracts and asks to correct wrong information on the media.