Hyundai Engineering-KIND, $130 Million Joint Investment Final Contract for Poland Petrochemical Plant

Signing of the Main Contract for Joint Investment in the $1.1 Billion Poland Petrochemical Plant Ordered Last May
Joint Investment of $13 Million with Korea Overseas Infrastructure & Urban Development Corporation (KIND)

[Asia Economy Reporter Yuri Kim] Hyundai Engineering announced on the 1st that it signed the final joint investment contract for the 'Poland Police PDH·PP Plant' project on the 29th of last month.

This project, which Hyundai Engineering won in May last year, involves constructing polypropylene (PP) production facilities, a port, and auxiliary infrastructure in the Police region of Poland. The contract amount reaches approximately $1.12 billion (about 1.3771 trillion KRW). It is the largest project ever won by a Korean construction company in the European Union (EU).

Hyundai Engineering, Korea Infrastructure Investment & Development Corporation (KIND), Poland's largest petrochemical group Grupa Azoty, and major Polish refinery LOTOS will invest a total of $733.3 million in the Poland Police PDH·PP Plant project in the form of equity and shareholder loans through this joint investment final contract. Among them, Hyundai Engineering and KIND's investment amounts to a total of $130 million (about 158.9 billion KRW).

Hyundai Engineering stated, "Due to the COVID-19 pandemic, face-to-face negotiations were impossible, making it difficult to negotiate investment details, but by actively utilizing online means such as conference calls and emails, we successfully signed the joint investment final contract in a timely manner." They added, "Through this investment contract, Hyundai Engineering will participate in the operation phase after the project's completion, enabling the creation of long-term high value-added profits through equity investment."

Meanwhile, the Poland Police PDH·PP Plant will produce 400,000 tons of polypropylene annually after completion. The produced polypropylene can be used in a wide range of industrial fields such as automotive parts, artificial fibers, and various daily necessities.

A Hyundai Engineering official said, "Through close collaboration with KIND, we were able to secure the EPC (Engineering, Procurement, and Construction) contract for this project last year and now finalize the joint investment contract." He added, "As both the EPC contractor and equity investor, we will focus the company's full capabilities to ensure the smooth progress of this project."

This content was produced with the assistance of AI translation services.