Hyundai Engineering Selected as Preferred Negotiation Partner for 2.7 Trillion KRW Poland PKN Olefin Expansion Project

Proving Global Competitiveness with EPC Main Construction Orders Following Basic Design (FEED) Contracts
Full-Scale Results of Sales Strategy Linking Plant Feasibility Analysis, Basic Design, and EPC Orders
Orders from Diverse Regions Including the USA, Russia, and Indonesia... Achievements in New Market Development and Market Diversification

On the 24th (local time), Daniel Obajtek, President of PKN ORLEN, Jacek Sasin, Deputy Prime Minister of Poland, Kim Chang-hak, President of Hyundai Engineering, and Juan Yado, President of TR (from left), who attended the signing ceremony for the preferred bidder of the 'Poland PKN Olefin Expansion Project' held in Płock, Poland, are taking a commemorative photo after the signing ceremony. / Provided by Hyundai Engineering.

[Asia Economy Reporter Kangwook Cho] Hyundai Engineering has been selected as the preferred negotiation partner for Poland's largest-ever petrochemical plant EPC project, valued at approximately 2.7 trillion KRW.

On the 24th (local time), Hyundai Engineering held a signing ceremony for the 'Poland PKN Olefins Expansion Project' in Plock, Poland, attended by Jacek Sasin, Deputy Prime Minister of Poland; Daniel Obajtek, President of PKN ORLEN; Kim Chang-hak, President of Hyundai Engineering; and Juan Llado, President of Tecnicas Reunidas (hereafter ‘TR’), among other officials.

The 'PKN Olefins Expansion Project' is located in Plock, Mazovia Province, central Poland, about 120 km northwest of the capital Warsaw. It is a large-scale petrochemical project that cracks naphtha produced in the Plock petrochemical complex to produce 740,000 tons per year of ethylene, known as the "rice of the petrochemical industry."

Hyundai Engineering formed a consortium with Spain's TR and participated in the project as the consortium leader. This project is a 'Dual FEED & EPC bidding' type, where two basic design companies selected by the client directly choose the olefin production technology licensor to perform the Front-End Engineering Design (FEED), and then the two FEED companies compete in the EPC bidding based on that design. The Dual FEED & EPC bidding method requires advanced know-how in selecting the most suitable licensor, project execution capabilities, and high-level basic design expertise.

The Hyundai Engineering-TR consortium, along with a consortium of leading European construction companies, was selected as the Dual FEED contractor and performed the FEED. Afterward, through EPC bidding competition, they were recognized by the client for their basic design and project execution capabilities, surpassing competing consortia to be chosen as the preferred negotiation partner.

Location map of Poland PKN Olefin expansion project.

Hyundai Engineering has built a track record domestically and internationally based on its technological competitiveness in the FEED field. It has also secured successful project execution results in the high value-added business area of ‘FEED-EPC linked orders,’ which connects basic design to EPC. A representative example is the 2011 FEED execution for the Kandym Gas Processing Facility project in Uzbekistan, followed by winning the EPC main construction contract worth about 3 trillion KRW in 2015 and successfully completing it.

Recently, Hyundai Engineering has been awarded and is executing FEED projects in Russia, the United States, Malaysia, and others. Many of these projects are proceeding under the FEED & EPC bidding method, making it highly likely that they will lead to EPC orders in the future.

Hyundai Engineering plans to demonstrate its global top-tier level FEED capabilities and EPC project execution skills by successfully carrying out the PKN Olefins Expansion Project for PKN ORLEN, Poland’s largest state-owned oil refining company that is driving Poland’s growth. The company’s strategy is to further solidify its position in the European market and seize this opportunity to establish itself as a global EPC company.

Since winning the 1 billion euro Poland Polimery Police PDH/PP plant contract in October 2019, Hyundai Engineering has continued to secure orders in the European Union (EU) market, standing out as the only Korean construction company excelling in the European petrochemical plant market.

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