Korean Builders Rack Up Orders in 2008

Middle East, North America account for largest portion of projects

The Ministry of Knowledge Economy (MKE) announced that plant construction projects secured by Korean builders overseas totaled $46.2 billion in 2008, up 9.5 percent from the previous year.
The ministry said most of the projects came from the Middle East as the oil-rich countries in the region want to expand industrial infrastructure, build deep-sea oil drilling ships and marine platforms in connection with their oil and gas projects.
Overseas plant construction project figures are the largest in history for Korean builders' overseas operations, despite the turbulent world economy triggered by the U.S. subprime mortgage fiasco.
By region, the Middle East led the projects, taking advantage of its bulging oil money brought on by last year's high oil prices to expand industrial infrastructure such as oil and gas facilities including petrochemical plants and oil refineries. The region's spending is up 63 percent YoY and accounts for 43 percent of the total project orders secured by Korean builders last year.
North America came next, placing $12.3 billion in plant construction projects with Korean builders mostly for marine plants and drilling ships to explore for oil, up 221 percent YoY, accounting for 27 percent of the total orders.
By type of project, orders for drill ships and marine plants have increased markedly, showing an intensification of exploration for natural resources, totaling $16.1 billion, up 18 percent YoY. But orders for plants for petrochemical, power generation and fresh water purification were down from the previous year by 36 and 21 percent respectively.
By scale, those costing more than $500 million numbered 35 projects, or $35.3 billion, accounting for 76 percent of the total.
MKE Minister Lee Youn-ho at a meeting held on Jan. 18 at the Seoul Renaissance Hotel to discuss measures to expand overseas plant construction project orders, said the overseas construction industry should make efforts to secure $50 billion in plant construction project orders this year, although the economic conditions don't look too bright. He said the government will do its best to provide support to the industry in the areas of manpower training and the development of technology to make the industry a core growth engine in the future.
At the meeting, 13 people were given citations for their meritorious contributions to securing plant construction projects overseas including Managing Director Kim Dae-ho of POSCO. nw

Minister Lee Youn-ho of the Ministry of Knowledge Economy.

A view of an oil pier built by a Korean builder in Kuwait in the Middle East.