South Korea’s Samsung Heavy Industries (SHI) has confirmed it is to merge with Samsung Engineering Co., Ltd. with the aim of creating a “world-class total solution provider for shipbuilding and onshore and offshore services”.

Samsung Engineering shareholders will be able to exchange their shares and receive 2.36 SHI shares for every Samsung Engineering share they currently own. The two companies plan to hold a special shareholders meeting on 27 October with the aim of completing the merger process by 1 December.

SHI says that through the merger it will gain engineering, procurement, and project management capabilities, which it describes as core strengths of Samsung Engineering, and establish a stable foundation for the growth of its offshore plant business.

The latter, meanwhile, has mainly been focused on onshore hydrocarbon plants but says it will now be able to diversify into high value-added projects such as onshore LNG and offshore plants by securing SHI’s world-class offshore plant fabrication capabilities.

The merger is likely to give the pair a solid shot at becoming a global top-tier EPC (Engineering, Procurement and Construction) company. The stated goal is to grow into a total solution provider and increase their combined revenues of US $24.75 billion (in 2013) to $39.6 billion by 2020.