STX In Massive PR Gimmick

Posted: Daily Guide |Wednesday, 07 July 2010

By Charles Takyi-Boadu
IN THE face of the stiff opposition from industry players and civil society organisations against a US$10billion housing deal between it and the Government of Ghana (GoG), STX Corporation (Korea) has launched a massive public relations campaign to clear any doubts about the deal.

The documentary, which spans between10 and 15 minutes, is currently being aired on all major television stations in the country.

It outlines the achievements of the company since it was established some years ago, alongside some of its ongoing projects, including the deal it has signed with the GoG for the construction of 200, 000 housing units for the various security agencies.

In the said documentary, STX recounts its achievements in several countries in the areas of ship-building business, offshore business, diesel engine, business for ships & military, diesel power business, industrial plant business, construction, energy, shipping and electronic equipment (TASS, TACM, Radar..).

It also talks of how the company has helped in developing those countries.

In spite of this, some civil society organisations, including the Imani Centre for Policy and Education and the Danquah Institute, have raised concerns about the deal.

Imani believes that the Parliament of Ghana does not have sufficient information before it to make the right and necessary determinations relevant to the STX-Ghana contract, stressing “as things stand now, the conduct of the Parliament of Ghana has been the least commendable in this whole affair.”

The think-tank believes that by Parliament’s conduct and misconduct, it has betrayed the confidence of stakeholders across this country, regarding its capacity to act diligently and steadfastly in the supreme interest of the people of Ghana.

The Ghana Real Estate Developers Association (GREDA) backtracked on their opposition to the STX deal, asking Parliament to pass the deal.

They however made a proposal for an alternative deal, which they want considered alongside STX, which would enable GREDA to provide 5,000 housing units for government per year at an estimated cost of $90,000.

STX Corporation is a South Korean holding company engaged in the provision of trading services. Headquartered in Gyeongsangnamdo, South Korea, the company operates its business through two divisions; trade and ship maintenance.

Its trade business division provides shipping and energy materials, coal, oil, steel and others. Its ship maintenance business offers cargo management, marine technical, insurance, crew management and other related services.

The company had four local subsidiaries including STX Offshore & Shipbuilding, STX Engine, STX Heavy Industries, STX PanOcean and STX Energy.

STX Offshore & Shipbuilding is the world's fourth largest shipbuilder, recently acquiring Norwegian Shipbuilder Aker Yards in order to diversify their product line.

Aker Yards, as Europe's largest shipbuilder, had technical background in Cruise ship building.

The STX Group, formerly Ssangyong Heavy Industries, recently had an Initial Public Offering (IPO) of STX PanOcean. The IPO gave the group a substantial amount of cash to acquire Aker Yards.