Dear Editor,
This has reference to a column which appeared in your newspaper on Sept. 8, written by Ms. Mary Ann L. Reyes
We wish to clarify some erroneous pieces of information reported by Ms. Reyes that damaged the credibility and name of our company.
We maintain there was no irregularity with the contracts entered by STX Marine Service Co. Ltd. with state-run Power Sector Assets Liabilities Management (PSALM) Corporation.
The company has two current contracts with PSALM that include MTPP Operation & Maintenance Service for 650 megawatts (MW) Malaya Thermal Power Plant and overhauling of the unit turbine.
These two contracts have been performing well, compliant with and responsive to all terms and conditions set forth in their respective contracts with PSALM.
STX Marine Service has succeeded in localization and has fostered cooperative relationship with the Malaya staff. Although a complaint was recently filed by the local staff due to the cultural differences between Korean technical management and the local staff, it has already been resolved and the good relationship has been recovered with hearty support from the local staff.
On the overhauling work for unit-1 of the Malaya power plant, it was a very challenging project due to high potential risk and fortuitous event.
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.
Nevertheless, STX Marine Service, applying the best practices, has accomplished the overhauling work without any damage.
Malaya Termal Power Plant is now ready to provide emergency power supply to the main grid.
We would like to stress STX Marine Service is qualified to undertake the project as it is a specialized service company founded purposely to provide integrated total services with technical experts who have accumulated experience and technology.
STX Group used to own several power plants in Korea such as the Ban vol 174MW and Gum: 97MW thermal power plants. These plants were visited by a PSALM technical working group last year. STX Marine Service, as one of its affiliates, share technical knowledge and experience for O&M and overhauling.
In addition, STX Marine Service has carried out various power plant operations and maintenance as well as overhauling work in 2012 up to the present in Iraq, the Philippines, Brazil, an other countries.
STX Group was one of the largest conglomerate in Korea until it was downsized and underwent major restructuring due to financial losses suffered by some of its subsidiaries and affiliates.
In 2014, the Korea Development Bank (KDB), wholly state-owned policy bank in South Korea, became the largest and major shareholder (with 39.64 /o) of STX Corporation which is mother company of STX Marine Service.
STX Marine Service as an independent subsidiary of STX Corporation, has never applied for bankruptcy and has been maintaining a stable and sound financial status since its establishment.
It has entered the Philippine electric power market for the 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 is poised to invest in the electric power businesses in main islands and especially small and isolated islands of the Philippines such as Marinduque and Palawan.
It has been making utmost effort in compliance with PSALM and conditions for contracts.
We hope your newspaper could immediately give our side to clarify the report and prevent disseminating erroneous information in the future about our company.
Sincerely yours,
JANG-YUN SON
Vice president and head of Philippine branch
STX Marine Service Co. Ltd.