NKK, Chiyoda to ally on overseas LNG plant business

NKK Corp. and Chiyoda Corp. have decided to jointly receive orders for and build liquefied natural gas plants overseas, for which demand is expected to grow, sources at the companies said Tuesday.

NKK, a major steelmaker, is strong in the manufacture of LNG pipelines and storage tanks, while Chiyoda, a plant engineering company, has much experience in overseas plant construction. The firms will target mainly the Mideast and Southeast Asian markets.

The companies will initially accept orders for LNG plants in Qatar and Indonesia, with NKK providing the construction materials.

The alliance will be limited to overseas business. The steelmaker will not provide financial support for Chiyoda, which is undergoing rehabilitation. (*)