Upswing in Plant
Construction Projects

ICAK celebrates 2nd plant construction day handing out medals to meritorious executives

The International Contractors Association of Korea celebrated the 2nd Overseas Plant Construction Day on November 3rd in a ceremony held at the Construction Hall in Seoul.
Minister of Construction and Transportation Choo Byung-jik, in his congratulatory speech, said in May he accompanied President Roh Moo-hyun who visited a number of countries in the Middle East and the Central Asia including the UAE, Kazakhstan, Uzbekistan, and Algeria in support of Korean construction companies engaged in various projects in the regions. The minister said he felt a great pride in those Korean firms in the regions to carry out the projects when many countries in the regions wanted to continue to have close cooperation with Korea as they plan to spur the construction of infrastructures financed with their high oil dollar earnings.
He said he would like to thank some 4,700 construction workers engaged in projects in some 60 countries overseas for their hard work, saying that this year's plant day ceremony is special in the 41-year history of overseas construction with the industry having another boom. As of February, accumulated orders of overseas projects went over the $200 billion mark in value and plant project orders as of October 31st totaled over $21.7 billion, up 67 percent YoY. "This year is set out to be the year with record overseas project orders,"Minister Choo claimed.
The minister also warned against the stiffening competition in the construction market overseas, although project orders are on the rise especially in the oil-rich Middle East and the Central Asia, requiring Korean builders to take advantage of skills of doing business overseas accumulated over four decades to full use. The government is prepared to provide support to the industry by expanding funding for R&D activities to upgrade technologies related to the industry and small-and-medium firms to win overseas projects and find new markets.
The government will also do all it can to secure enough manpower to the industry and strengthen its construction diplomacy to help Korean firms win more projects overseas, especially in new countries.
Lee Yong-koo, chairman of the ICAK, said the overseas construction sector is enjoying another boom in the construction market overseas thanks to high oil prices, with many countries with high oil income want to build plants and buildings to spur the development of their economies. The industry has once again become a "loyal son"helping the country's economy hit by high oil prices by bringing in foreign currencies earned abroad, raising national income. The industry is likely to win $16 billion worth of projects this year, the largest annual record in its history. The record is the result of everyone in the industry working hard at overseas jobsites, with blood and sweat over four decades.
But we cannot afford to be satisfied, but continue to work hard to make the industry a futuristic growth leader by all means. We need to secure advanced technologies, develop core technologies and train an internationalized expert workforce- pouring all of our efforts in every major areas of our business including the search for new markets. He reminded the participants that competition is growing tough overseas with construction firms from China and India chasing early starters in the market with cheap labor costs as their major weapons. We should find new markets in the Central Asia, including Kazakhstan and Algeria and Uzbekistan to win orders for chemical, gas treatment plants, among others
ICAK is 30 years old this year and is prepared to help member firms to win many overseas projects, especially, plant projects, civil and construction projects, while helping SMEs to make advances to overseas construction market, and training expert personnel, which is in short supply.
In the meantime, the MOCIE said overseas orders for plant construction have reached $21.7 billion as of the end of October, up 67 percent on year to year basis. Orders for marine facilities jumped 96 percent from the same period last year to $10.6 billion, followed by petrochemical plant orders of $4.6 billion, up 22 percent from a year ago. Orders for resources exploration and plants totaled $17.4 billion, up 66 percent, the ministry said.
By region, orders from the Middle East totaled $8.1 billion the largest among all regions, but those from Europe and the U.S. totaled $5.1 billion and $3.5 billion respectively, up 920 percent and 483 percent, an explosive pace. Orders from Asia totaled only $1.7 billion, down 6 percent.
The ministry said orders placed this year so far are high value-added and large in scale. Orders worth more than $500 million totaled 16 cases and $12.4 billion in value, up from $7.3 billion over 9 cases last year. The ministry added that orders for GTL plants that extricate diesel and naphtha from natural gas increased sizably showing the high-level technology of Korean builders.
At the ceremony, MOCT Minister Choo presented medals and citations to 37 executives of overseas construction companies for their contributions to the growth of their companies:
Vice President Kim Sun-kyu of Hyundai Engineering and Construction won the Industrial Medal Gold Tower in recognition of his services as jobsite manager of various large projects for the company including Bandabas harbor construction in Iran, and the Abu Dahbi International Airport. He also has been credited with the introduction of an advanced financing system for overseas projects as a new project model and successfully solving a claim on the project amounting to $177 million.
Chang Mu-ik, director of GS E&C, won the Industrial Medal Bronze Tower for his services tendered in the company's orders for many plant construction projects including those in the U.S., Thailand, Saudi Arabia and Iran, especially oil refinery and petrochemical plant orders. During the financial crisis in 1998, he helped to win a $700 million oil refinery construction project from Qatar, earning valuable dollars for the country. The project led to winning a follow-up project worth $230 million.
Shim Jung-sup, managing director of Hanjin Heavy Industries and Construction, won the Industrial Medal Iron Tower, for his outstanding services in the company's many project orders in the Middle East, especially, in Saudi Arabia, worth some $2.3 billion during his assignment from 1980 to the early 1990. Shim, a veteran of 30 years in overseas construction, has also been credited with winning 11 projects in Southeast Asian countries, especially, the Philippines including such projects as the light electric rail line project in Manila, the Davao International Airport project, and harbor, dam, and highway construction projects, boosting the prestige of Korean construction firms in that part of the world.
Lee Hong-jae, director of Daewoo Engineering and Construction, won the Industrial Medal Stone Tower, for his contribution to the company's projects in Africa, especially, in Nigeria, while serving as manager of the project to build an oil storage facility for Exxon Mobile in Nigeria. He cut the construction period short through tight management of all phases of the project including purchase of material, equipment and construction, winning appreciation for the project owner, Exxon Mobile. He also had his hand in the company's winning 6 large projects in the African country, including the project to build a power plant, a pipeline project and plant construction projects, after he was promoted to become head of his company's operation in Nigeria in 2004. nw

(from left photo) Winners of medals are joined by MOCT Minister Choo Byung-jik, fourth from left, and ICAK Chairman Lee Yong-koo, third from right, to cut the cake at the 22nd Overseas Plant Construction Day. Vice President Kim Sun-kyu of Hyundai E&C receives the Industrial Tower Gold Medal.