Hyundai Strengthens
Overseas Presence

Likely to surpass this year's target in the first half

Hyundai Engineering & Construction (HDEC) is surging with new overseas project orders it has landed so far this year to demonstrate as if it would have the renaissance of a boom in the 70s.
In the latest feat, HDEC won the $696 million (700 billion won) power and desalination station order from United Arab Emirates.
Hyundai Engineering & Construction President-CEO Lee Ji-song held his first news conference since his inauguration at the helm of the construction company on May 30 and disclosed his company's landing of the Jabel Ali Power & Desalination Station "L" Phase II, ordered by Dubai Electricity & Water Authority. The project is part of the $946 million project designed to build a 1200MW combined cycle power and a desalination station capable of 55 million gallons of water per day. The $250 million desalination station work went to an Italian company.
The latest deal followed Hyundai Engineering & Construction's inking a $397 million contract for the New Ethane Recovery Plant Project ordered by Kuwait National Petroleum Company. Both management, including Hyundai President Lee and Chairman Al-Rushaid of Kuwait National Petroleum Company attended the ceremony in the Kuwaiti office on May 15 and agreed to extend their full cooperation for the successful completion of the Project.
Hyundai's outstanding technical strength and abundant experience in the construction field have been proven through large-scale overseas works including the successful completion of the South Pars Gas Field Development, Phases 2 and 3 Contract in Iran, worth $ 1 billion in 2001 and its consecutive Phases 4 and 5 contract worth of $ 1.6 billion. Based on its technology and experience, Hyundai received the order for the New Ethane Recovery Plant, which will work as favorable ground in the oil and gas sector in Kuwait, where related subsequent orders are expected in the time ahead.
HD completed the large plant project in 35 months, breaking the world speed records for construction of gas-in and for product manufacture in the shortest period. President Khatami attended the inaugural ceremony, congratulating the successful completion of the project. In March 2002, HDEC won orders from ENI Iran BV amounting to $ 1.6 billion (Approximately 1.62 trillion won) for the construction of a world-class, super-large plant. A ceremony commemorating this remarkable feat was held on April 16, in Assaluyeh, southern Iran.
Hyundai Engineering & Construction said the company is most likely to win three more orders worth of a combined $950 million, raising the prospects of surpassing the $2 billion goal for this year in the first half. HDEC President Lee said HDEC would be assured of total $2.1 billion by landing additional three more orders from such countries as Iran and Kuwait, and chances are high that the value of orders it will win by the end of this year would rise to $2.5 billion. If things go well, the construction company would break the $2.5 billion mark, the first since 2000 when it posted $2,539 million. The $2.5 billion represents one-fourth of $10 billion the government has set as a target of orders domestic contractors would win during this year.
Lee said Hyundai Engineering & Construction is considering beefing up its overseas business division to actively strengthen its presence abroad and establishing a local business headquarters in a major market. He went on saying that Hyundai Engineering and Construction, having posted black-ink figures for the fourth straight year, will continue to conduct a profit-taking strategy in winning orders from abroad.
Earlier, HDEC said it is building a system to win over 2 billion dollars in annual overseas orders and reorganizing its overseas project division to launch full-fledged localization work through overseas corporations. HDEC will aggressively pursue overseas orders by constructing a cooperative system with local corporations centered in the Middle East and forming joint-ventures to participate in the bidding.
Hyundai Engineering and Construction has been recovering from financial difficulties it underwent in the wake of the 1997-98 Asian financial crisis.
In particular, HDEC has made a strong showing in the recent years thanks to its strenuous efforts and profit-taking strategies. They are proving to pay off at a time when oil exporting countries are increasing placing orders to capitalize on rising revenues caused by crude oil price hikes.

Hyundai Engineering & Construction President-CEO Lee Ji-song

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