Freezer manufacturer KEPCM said it has signed a large-scale export sales contract with a Chinese energy corporation, paving the way for a deal worth an estimated $200 million during the next five years.

Called the “Green IT System Building Project,” the contract between KEPCM and a Chinese energy management corporation in Wuhan was signed at the KOTRA-organized Global Smart SOC Initiatives 2012, which took place at the Imperial Palace Seoul on May 24 and 25. 

Under the deal, KEPCM will work toward an initial export target of $3 million during this current fiscal year, and use a phased delivery method to deliver goods to China within the next half-decade. The deal will be worth about $200 million.

According to KEPCM spokesman Kim Dae-young, the Korean company spent the last five years developing this unique energy saving and reduction system, which has already been registered with Korea’s Intellectual Property Office. KEPCM specializes in refrigeration systems for automobiles, storage systems, and buildings and is also eying entry into other sectors.

In addition to this deal, five other major contracts or memorandum of understandings were signed on-site at the conference for an estimated $890 million, according to KOTRA.

The deals include a memorandum of understanding between Korea’s Infinitt Healthcare and a Bulgarian hospital service with regards to hospital administration and medical information systems.

As an IT project cycle usually takes about two to three years towards completion, contracts signed this year were the result of trade relations that started roughly two years ago, said KOTRA’s head of strategic marketing Kim Byoung-kwon.

Meanwhile, the KOTRA-sponsored conference brought together 59 IT companies from a range of different fields, including e-government, broadcasting and communication, as well as education.

By Renee Park (renee@heraldcorp.com)