[2021 Asia Construction Awards] Hyundai Engineering Wins Poland Project... Foothold for Entry into European Market

President Award of Overseas Construction Association - Overseas Construction

A view of the PDH/PP plant site of Hyundai Engineering in Police, Poland.

Hyundai Engineering, which received the special award, the Overseas Construction Association President's Award, at this year's Asia Construction Comprehensive Awards, is expanding its business scope by successfully pioneering various countries in overseas project orders despite the COVID-19 situation.

Hyundai Engineering attracted industry attention by becoming the first domestic construction company this year to consecutively enter the European market, known as the birthplace of plants. In May, it secured the polymer Police polypropylene plant construction project in Poland, a European Union (EU) country, followed by winning the Poland Olefin plant expansion project in July. It also announced the good news of winning the Orenburg gas processing facility EPC (Engineering, Procurement, and Construction) project in Russia. This significantly broadened the scope of overseas projects, which are mainly conducted in the Middle East or Asia regions.

The Polymer Police Polypropylene Plant is a project to build an annual 400,000-ton polypropylene production facility and auxiliary infrastructure in the Police area, about 460 km northwest of Warsaw, the capital of Poland. With a total project cost of 992.8 million euros (approximately 1.4 trillion KRW), it is the largest project in Poland and the largest petrochemical plant project ever awarded by a domestic construction company in an EU country. Hyundai Engineering's securing of a large-scale petrochemical plant construction project in Europe has raised expectations within the industry that entry into various construction fields in the previously high-barrier European region will become possible.

In particular, this project is an investment development-type business in which Hyundai Engineering participates not only in EPC execution, including design, procurement, and construction, but also as a joint equity investor. Especially, the Korea Overseas Infrastructure & Urban Development Corporation (KIND), a public investment institution under the Ministry of Land, Infrastructure and Transport, is participating as an investor in the project, making it a representative case that demonstrates the capabilities of the ‘Overseas Construction Team Korea.’

Hyundai Engineering is focusing its capabilities on pioneering new markets and securing orders linked to plant design, procurement, and construction (EPC) based on Front-End Engineering Design (FEED). In line with changes in the business paradigm, it is expanding its strategy beyond the existing Central Asia and Middle East markets to various countries such as Europe, Southeast Asia, and the United States. As a result, since last year, the new market pioneering strategy has begun to bear fruit with projects such as the ‘Poland Polymer Police Plant,’ ‘Indonesia Balikpapan Refinery,’ ‘Poland PKN Olefin Expansion Plant,’ ‘Russia Methanol Plant FEED,’ and ‘Malaysia Rosemary Gas Processing Facility FEED.’ In particular, based on abundant FEED execution experience and successful completion records of FEED-linked EPC projects, the shift in the sales paradigm from ‘plant feasibility analysis-FEED-EPC main construction order’ is being recognized as producing results.

A Hyundai Engineering official said, "We are concentrating advanced technology, personnel, and know-how so that the Poland Polymer Police PDH/PP Plant project can serve as a foothold for our full-scale entry into the European plant market," adding, "Through the successful execution of this project, we will externally demonstrate Hyundai Engineering's technological capabilities and project execution capacity and make every effort to secure additional projects in the European region."

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