Overseas Construction Orders Reach $30.6 Billion Amid COVID-19 Crisis... Achieving $30 Billion for Two Consecutive Years

Corporate Efforts Shine Through Diversification of Order Regions and Expansion of Investment-Development Projects

Despite the COVID-19 pandemic this year, overseas construction orders exceeded the initial target, surpassing 30 billion dollars for the second consecutive year.

The Ministry of Land, Infrastructure and Transport and the Overseas Construction Association announced on the 30th that this year's overseas construction orders amounted to 30.6 billion dollars, exceeding the initial target of 30 billion dollars. Although this is a 13% decrease from last year's 35.1 billion dollars, it is a performance that recorded over 30 billion dollars for two consecutive years.

Korean construction companies' overseas construction order performance had recorded over 70 billion dollars in 2010 and maintained over 50 billion dollars annually until 2014. However, from 2016 onwards, due to changes in external conditions such as the decline in oil prices, the performance hovered around 30 billion dollars.

In particular, despite the pessimistic outlook for orders due to the overlapping issues of global economic uncertainty and low oil prices amid the COVID-19 crisis since last year, the decrease in contracted projects, and strengthened quarantine measures by country, it is explained that these results were maintained thanks to △diversification of order regions and construction types △government support through 'Team Korea'.

This year, a total of 318 companies secured 501 projects worth 30.6 billion dollars across 91 countries. By region, the order share was Middle East (37%), Asia (30%), Europe (15%), and North America & Oceania (13%). Although orders in the Middle East decreased by 16% compared to the previous year, diversification of order regions was achieved with North America & Oceania increasing by 620% to 550 million dollars, and Europe increasing by 188% to 1.6 billion dollars.

By construction type, plant (industrial facilities) orders accounted for more than half (58%), maintaining a high proportion, followed by civil engineering (19%) and electrical (10%). Industrial facilities orders decreased by only 4.0% compared to the previous year, but civil engineering and architecture saw significant declines (civil engineering down 40%, architecture down 47%). On the other hand, electrical orders increased significantly (up 352%) due to large-scale subsea power transmission projects.

The largest order this year was the 'Jafurah Gas Processing Facility' project in Saudi Arabia, secured by Hyundai Construction and Hyundai Engineering, with an order amount of 2.88 billion dollars. This project is significant as it is Saudi Arabia's first shale gas development project, led primarily by Korean companies.

Among Public-Private Partnership (PPP) projects, GS Construction secured the largest order with a road tunnel construction project in Australia worth 2.38 billion dollars through a partnership with global construction companies. Following such large-scale project orders, Korea's share of investment-development type orders increased significantly from 1.8% last year to 10.2% this year.

The 2.27 billion dollar ultra-high voltage direct current subsea power transmission project in the United Arab Emirates (UAE) was jointly secured by Korean companies including Samsung C&T and Korea Electric Power Corporation as 'Team Korea', integrating design, procurement, construction (EPC), operation, and financial procurement.

Other projects secured include the Singapore urban railway construction project (1.39 billion dollars) by a consortium of Daewoo Construction, Dong-A Geotechnical, and Samsung C&T; Hyundai Engineering's expansion of a petrochemical plant in Poland (1.3 billion dollars); Doosan Heavy Industries' Guam combined cycle power plant project (570 million dollars); and Hyundai Construction's Chinchero International Airport construction in Peru (150 million dollars).

Kwon Hyuk-jin, Director of Construction Policy Bureau at the Ministry of Land, Infrastructure and Transport, said, "Despite uncertainties caused by COVID-19, the efforts of companies and workers actively leading overseas construction projects made it possible to secure 30 billion dollars in orders." He added, "Next year, to sustain the order momentum, we will continue comprehensive support activities including high-level order support, building the Team Korea platform, and providing financial, investment, and legal advisory support. We will also promote various support policies for high value-added projects such as Public-Private Partnership (PPP) and Construction Project Management (PM)."

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