Another Huge Project in Saudi Arabia

Hyundai E&C picks up $2.6 bln gas treatment facility project from Aramco in dash to clinch $6.5 bln worth of projects overseas this year

Hyundai Engineering & Construction Co. (HDEC) has signed a contract with Aramco to take charge of a project worth $2.6 billion building a gas processing facility in the Khursaniyah region of eastern Saudi Arabia capable of treating 1.8 billion square feet of natural gas daily.
The company said it was able to secure the project due to its successful experience of building stages 2 and 3 and stages 4 and 5 of the South Pars gas plant project in Iran, and a gas treatment facility project in the Qurais region in Saudi Arabia in September 2006, displaying its abundant technology and construction know-how, especially for building large petrochemical projects.
Hyundai first undertook a Saudi construction project in 1975 to build a naval base and has completed 135 projects worth $12 billion in the 34 years since, including such mammoth projects as the Jubail harbor construction project and the Saudi Ministry of Interior building. Hyundai officials said Saudi Arabia has the world's fourth largest gas deposits and Hyundai is blessed enough to have successfully completed its first Saudi gas treatment project in 2006, which led to securing the Khursaniyah project. Hyundai has put itself in a good position to win similar projects in not only Saudi Arabia, but also in other countries with gas deposits, especially in the Middle East. The company feels that it has a good start toward securing $6.5 billion worth of overseas construction project orders this year by winning the gas treatment facility project. The company is also eyeing its chances of landing a large number of projects in Southeast Asia.
HDEC posted over 7 trillion won in annual sales last year for the first time in its history, the company announced recently. The company said it has been able to post such record sales despite the slumbering economic conditions both at home and overseas, thus improving its financial structure and, this year, the company's construction capability rating will be upgraded further from the third place where it is currently ranked. The 7.271 trillion won in sales is up 28.7 percent YoY and its operating profit of 480.2 billion won is up 32.6 percent YoY, the company said.
The company's new orders secured last year came to 16.481 trillion won including $6.5 billion in various projects overseas to bring the total project order backlog to 41.774 trillion won, 5.7 times last year's sales.
The company said it was able to boost profits by securing highly profitable projects amid the tough business conditions all over. The company's debt ratio fell 10.9 percent to 180.8 percent through huge improvement in profits, repayment of debts, and cuts in expenses. The company set this year's total annual sales target at 8.263 trillion won, up 23 percent from last year, with an operating profit of 462.6 billion won and a net profit of 295.8 billion won. The company said it will strive to acquire 15.6 trillion won in project orders at home and overseas this year, an optimistic figure considering the worldwide economic slowdown, which is likely to continue this year. The company will try to secure at least $6.5 billion in overseas project orders this year to stay on as a leading builder in Korea in overseas projects by expanding its operations in the Middle East, where oil dollars continue to flow, despite the world economic downturn, and remains the company's strongest operating region.
The company also plans to improve its marketing operations in India, especially regarding large infrastructure projects, and in other emerging economies with abundant natural resources. The company will focus on large government projects and infrastructural projects from the innovative cities being built around the country. The company plans to sell 9,100 of its HillState brand of apartments this year.
In the meantime, the company signed a $93 million contract to undertake the main construction package of a 68-story financial tower developed by the Binh Minh Import-Export, Production and Trading Corp. in Vietnam. The 262.5-meter building will be the tallest financial tower and the second highest facility in Vietnam, after the 336-meter, 70-story Keangnam Hanoi Landmark Tower.
The package also includes the supply and installation of the tower's electrical and engineering systems. The Bitexco Financial Tower, located in HCM City's District 1, is bound by the streets Hai Trie, Ngo Duc Ke and Ho Tung Mau. The total investment for the tower is estimated at $220 million. Bitexco chairman Vu Quang Hoi said he expects the project to be completed in 2010. nw

(Photos from left) A view of Hyundai E&C's project site in Saudi Arabia. A scene of the contract signing between HDEC and Aramco on the $2.6 billion gas treatment facility project.