Plant Export Orders Exceed $2.8 Bln in 3rd Qtr.
- Likely to hit $10 bln this year due to Russian project

 
Plant export orders in the 3rd quarter totaled $2.804 billion over 33 cases, up 67 percent from the same period last year, the Ministry of Commerce, Industry and Energy (MOCIE) said on September 30.

The substantial plant order increase overseas has been attributed to a plant order received by the LG Corp.-LG Construction consortium in connection with the construction of an oil refinery in Tartarstan, Russia, amounting to $1.74 billion, the ministry said.

By region, Europe including Russia provided the biggest orders with $1.846 billion, followed by the Middle East with $446 million, Asia with $409 million and Africa with $97 million.

The European region topped all other regions because of the $1.74 billion order that the LG Corp.-LG Construction consortium achieved in Tartarstan, Russia, and a $106 million order won by LG Construction in Turkey.

Orders from the Middle East included a $408 million order to build the Sohar soft water and power generation plant in Oman, $96 million order won by Daewoo Engineering and Construction in connection with the project to lay a pipeline network for LNG in Nigeria, LG Corp? $14 million order to build a NEPCO transmission station in Jordan and a $10 million order to build a PEEGT transmission station in Syria.

The Asian region came up with $190 million order to build an aromatic compound production facility, a $68 million order to build an oil refinery in Taiwan, a $47 million order for the construction of a stevedoring facility for PSA in Singapore clinched by Doosan Heavy Industries and a $35 million order won by SK Construction in Thailand.

The Korea Plant Industry Association projects plant orders in the 4th quarter to amount to around $3 billion centering around oil and gas production facilities and petrochemical production facilities, bringing total plant orders for this year to around $10 billion. The association contacted 173 plant facility makers in the country to come up with the projection.

The success in Tartarstan has been possible due to the support extended by the MOCIE in a feasibility survey of the project and a $600 million deferred payment guarantee provided by the Korea Exim Bank.

In the meantime, plant export orders won by Korean firms in the first half-totaled $4.57 billion, up 12.2 percent from a year earlier.

By region, $2.44 billion came from the Middle East $1.42 billion from Asia, $340 million from Africa and $320 million from Europe, MOCIE said.

Orders from the Middle East surged 85 percent from the same period last year, reflecting the high oil prices, while orders from Asia jumped 150 percent year-on-year owing to thriving economies in a number of Asian countries including India, Thailand, and Taiwan. Orders from Africa and Europe declined 73 percent and 54 percent respectively due mainly to reductions in orders in marine structures.

By facility, Saudi Arabia placed a $420 million order for a combined cycle thermal power plant, while India ordered a thermal power facilities worth $360 million, bringing total orders to $1.5 billion, up 144 percent from the same period last year. Kuwait placed an order for desalinization plant worth $370 million, up 900 percent from the same period last year.

In the petrochemical sector, orders totaled $920 million, up $880 million from the same period last year including an order of $210 million for an oil refinery in Oman and $180 million worth of order for a propolyprene plant in Oman taken by a consortium of Korean firms.

The Korea Plant Industry Association projected that plant export orders in the second half would continue to be forthcoming totaling around 46 billion. The association contacted 173 firms in the heavy industry, construction and large trading firms to arrive at the projection. Plant orders from Iraq are likely to slow down for a while due to the unstable situation in the war-torn country.

The association said orders from such Middle East countries as United Arab Emirates, Libya and Oman are likely to increase, thanks to increased revenues from high oil prices and being unaffected by the Iraqi situation.

Kim Soon-chul, director of Export-Import Division at MOCIE, said MOCIE plans to help Korean firms by inviting those in charge of placing plant orders in the Middle East, Africa, Asia, and East Europe to Seoul for direct talks with Korean firms in October.   nw