Hyundai Engineering & Construction, South Korea’s largest builder, is staking out new business opportunities in key emerging markets such as Latin America to fuel its future growth.
“Entering the overseas market is inevitable for overcoming the current slowdown in Korea’s construction market,” said Hyundai E&C in a statement outlining its future growth plans.
In particular, the construction firm said it has placed priority on Latin America, where it has attained numerous orders this year.
The most recent order that the builder has attained is a $90 million front-end engineering design project for a petroleum coke power plant commissioned by Venezuela’s state-run oil company PDVSA in November.
A fertilizer plant in Qatar built by Hyundai Engineering & Construction. (Hyundai E&C)
“The project marks a significant turning point for the company as it is the first time for a Korean contractor to land a deal in a sector dominated by global top tier companies,” said a company spokesman.
Hyundai E&C also made inroads into the Chilean construction market for the first time this year by winning a $648 billion project to build the Chacao Channel Bridge, which will be Latin America’s longest suspension bridge.
In 2013, the builder’s overseas sales exceeded $10 billion for a second consecutive year. Accumulated overseas orders at the time reached $10.9 billion.
“Hyundai E&C is working to build a more balanced business portfolio, while at the same time securing stable income sources and winning profitable orders,” the firm said.
The construction firm launched a total of 27 overseas branches and offices to expand its global reach. Those include seven offices in key Asian cities such as New Delhi, Beijing and Jakarta; five in the Middle East; and three in Africa.
“We will continuously invest in research and development to become a leader in the high-value-added market,” the company said in the statement.
Meanwhile, in the civil engineering sector, Hyundai plans to focus on resource development and water treatment projects while concentrating on green smart building in the architecture sector.
By Park Han-na (hnpark@heraldcorp.com)
