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KC Samyang Water System Co., Ltd. was established in 1968 as Korea¡¯s first comprehensive water facility manufacturer. KC Samyang has specialized in water processing facilities in urban areas, pure water processing for industrial plants, and waste water processing systems. In 1983 KC Samyang introduced urban waste water processing technology from Hitachi Plant Technologies, Ltd. of Japan into the Korean market and established a technology cooperation agreement with Ebara Corporation of Japan on condensate polishing facility. In 1996 we acquired leading DeSOx processing for the first time in Korea from Mitsubishi Heavy Industries, Ltd. and successfully localized this technology, which has been implemented at numerous power plants throughout Korea.

Through continuous technology progress KC Samyang was chosen as a ¡®Prospective Small Business¡¯ by Korea Exchange Bank in April 1984 and again as a ¡®Prospective Exporting Small Business¡¯ in September 1999 by the Small Business Corporation. In addition, KC Samyang was chosen as a ¡®Target Business for Global First-rate Promotion¡¯ by Industrial Advancement Administration in 1995. In recognition of our significant contribution domestic industrial progress by fully localizing water treatment technology, which heavily depended on foreign technology in the past, KC Samyang received a ¡®Silver Industry Medal¡¯ from the Korean Government in 1990.

Along with technology development KC Samyang has also endeavored in quality improvement. Thus, KC Samyang received international quality certifications such as ISO 9001 in May 1997 and ISO 14001 in September 2005 through LRQA, an international certification agency. KC Samyang¡¯s internal Institute of Environmental Technology has put forth significant efforts for product development and received KT Certification from the Ministry of Science & Technology on the Settling Pond Sand Removal Device for waste water processing plants in 1996; EM Mark from Ministry of Commerce, Industry & Energy on Rotary Screen Type Seawater Filtration Facility in 1999; and an award from the Minister of Environment on our environment technology entry into the MOE¡¯s public technology contest in 2002.

Currently, KC Samyang¡¯s focus technology areas are Water Intake Facility, Water Processing Systems, Waste Water Processing Systems for DeSOx and DeNOx.

KC Samyang¡¯s water intake facilities, which are essential for using seawater for cooling purpose or other industrial uses, are installed at numerous domestic nuclear power plants, thermal power plants, cogeneration plants and LNG stations. In particular, most of Korea¡¯s nuclear power plants including Uljin No. 3 and No. 4 (1993); Wolseong No. 2, No. 3 & No. 4 (1994); Gori No. 1 (1995); and Uljin No. 5 and No. 6 (1997) have chosen and implemented KC Samyang¡¯s facilities. KC Samyang has exported intake facilities to seawater distillation plants in the Middle East with total export over $ 10 million. In total, KC Samyang has installed more than 300 intake facilities.

KC Samyang¡¯s DeSOx system for power plants has been designed to remove pollutants such as phosphor, heavy metals and fluorine. This system uses special material in its components to prevent their corrosion and thus ensure extended useful life and reliability. This facility has been installed at Youngheung Thermal Power Plant and Samcheonpo Thermal Power Plant. Currently, deNOx waste water processing system at Hadong Thermal Power Plant and Dangjin Thermal Power Plant as well as deSOx waste water processing system at Boryeong Thermal Power Plant are being constructed. In this regard, Mr. Chang, KC Samyang¡¯s president, has been emphasizing, ¡°An environment regulation requiring deSOx systems will be implemented from 2006. This facility will be an essential component at every power plant and industrial plant.¡±

Currently, KC Samyang Water System Co., Ltd has been certified as a qualified vendor by KEPCO in the areas of Intake Facilities, Water Treatment Systems, Waste Water Processing Systems and Hypochlorination Systems for hydro, thermal and nuclear power plants.