Posted on 17 Apr 2015
Hyundai Engineering and Construction (E&C)
expands business in the Middle East as a forerunner in Korea’s overseas
construction scene.
Last February, the company signed a construction agreement in Karbala, Iraq, a
city 120 kilometers (74.5 miles) south of the country’s capital, Baghdad. The
event marked the beginning of the Karbala oil refinery construction project,
which is funded by Iraq’s State Company for Oil Project.
Valued at over six trillion won ($5.4 billion), the construction will be
carried out as a joint venture of four Korean companies: Hyundai E&C, GS
Construction, SK E&C and Hyundai Engineering. These conglomerates are
committed to working together to continue to reap success in the Middle Eastern
market.
For Hyundai E&C, business in this region is not a new challenge. In 1965,
the corporation became the first Korean construction company to operate
overseas.
Ten years later, a branch was set up in Iran,
marking the company’s entrance into the Middle Eastern market.
Shortly after, deals were made for a shipyard project in Bandar Abbas, Iran,
and an industrial port in Jubail, Saudi Arabia. Up to now, the company has
participated in 48 projects in 15 countries, with contracts totaling $66
billion in the Middle East alone.
In fact, the company did much more than simply go abroad faster than other
local constructors. In 2010, it was the first among Korean construction
companies to surpass $11 billion in contracts per annum.
The key to Hyundai’s regional success has been tackling projects that other
Korean construction companies were often reluctant to take.
Whereas other companies competed mainly for contracts for industrial plants,
Hyundai E&C opted to secure a portfolio that showcases a diverse range of
experiences. Nuclear power plants, ports and other major infrastructure like
malls and hospitals were built by the company, all across the world.
Hyundai’s drive towards diversification did not stop in the Middle East. The
company continues to expand into new markets, ranging from countries in South
America such as Chile, Colombia and Venezuela, to countries in Africa like
Uganda.
The company seeks to eventually do business in Europe as well.
In July 2013, contracts were signed for building the world’s first large-scale
cable-stayed suspension bridge in Turkey. Company officials believe that
demonstrating their competence through this national project will ultimately
contribute to paving a smooth and promising path to other opportunities in the
European market.
Even better news was waiting for the company later that year, as the revenue
from overseas contracts surpassed the 100 billion dollar mark in November.
As the company continues to grow in the Middle East, Hyundai E&C’s
achievements prove their competitive edge of experience and competence.
Furthermore, the most recent project in Iraq will serve as evidence that the
corporation is setting new standards for constructors in Korea, as active
cooperation and collaboration will become vital for companies working in
foreign markets.
