OPCO signs a 54-million-dollar deal with Samsung Heavy Industries

Oriental Precision & Engineering (“OPCO”) has signed a 54-million-dollar deal with Samsung Heavy Industries(“SHI”). The deal amounts to 18% of last year’s sales by OPCO.

This is the third big contract for OPCO, and it involves building the deckhouses, engine room casings, and funnels for SHI March 2012.

OPCO’s business performance is the result of the relationship and the trust the company has earned with its clients. The fact that OPCO is known to deliver the quality products on time is also the factor for the company’s success.

As the economy is picking up steadily, OPCO plans to work aggressively to secure additional orders for the rest of the year; and the outlook for OPCO’s 2011 performance is bright.

OPCO reports US$83 million in sales and the profit of US$2.5 for Q1 2011—4.8% increase in sales and 55.1% increase in profit from the same period previous year. OPCO lost US$3 million as of late 2010; but has turned a profit of US$2.8 million this year.

Supply contract announcement 1. Sales item DECK HOUSE 2. Sales contract Contract amount (KRW) 58,055,200,500 Recent sales (KRW) 324,151,870,507 Contract amount per recent sales 17.9% 3. Client Samsung Heavy Industries Co., Ltd. -Relationship with OPCO - 4. Region Domestic: Geoje 5. Contract period Begins on 2011-04-01 Ends on 2012-03-31 6. Major contract terms and conditions - 7. Sales and delivery method In-house production Yes Outsourcing manufacturing N/A Misc. - 8. Contract date 2011-05-25 9. Other investment-related information 1. The above contract amount includes sales tax. 2. The above recent sales is based on the sales total at the end of 2010 fiscal year.