[Let's Run Again K Construction] Hyundai Engineering Succeeds in Poland... 'Now Expanding Across Europe'

Achieving First Entry into the European Chemical Plant Market
Securing an Additional Plant Project Worth 2.7 Trillion Won

[Asia Economy Reporter Hwang Seoyul] Hyundai Engineering, which achieved its first entry into the European chemical plant market by winning a large-scale chemical plant project in the European Union (EU) among domestic construction companies, is nearing completion of its plant construction in the Police region of Poland.

This project, the largest in Poland at the time of its award in 2019, is regarded as a stepping stone that showcased the technological capabilities of Korean construction and engineering companies overseas.

Hyundai Engineering has proven its project management and risk management capabilities through this project, leading to additional plant construction project wins in Poland. The company plans to solidify its presence in Poland and expand its market and order scope to neighboring European countries.

Panoramic view of Poland's 'Polimery Police PDH/PP Plant'.
[Photo by Hyundai Engineering]

◆ Largest-ever Polish petrochemical plant project awarded in 2019 = Hyundai Engineering won the 'Polimery Police PDH/PP Plant Project' in 2019 and is currently executing it. The total project cost is 992.8 million euros (approximately 1.4 trillion KRW), involving the construction of facilities producing 400,000 tons of polypropylene annually along with auxiliary infrastructure. Completion is scheduled for January 2023, followed by commissioning.

The project was commissioned by Azoty Group, Poland's largest private petrochemical company, and was the largest plant construction project in Poland at the time of award. Construction is taking place in the Police region, about 460 km northwest of Warsaw, the capital of Poland. Upon completion, it will produce 400,000 tons of polypropylene annually, contributing to Poland's economic development through domestic sales and exports.

Winning the 'Polimery Police PDH/PP Plant Project' is significant as it marks the first entry into the EU, where many advanced plant companies operate, through a large-scale chemical plant order.

This project was selected as the first investment project by the Korea Infrastructure & Urban Development Corporation (KIND), which was launched in 2018. Until now, domestic construction companies have mainly handled civil engineering projects such as bridges and tunnels, as well as factory and office building projects for automotive, tire, and electronics companies in Europe.

However, this order is expected to expand Korean construction and engineering companies' entry into the European market, which has been difficult to penetrate, by proving their technological and execution capabilities.

The trust Hyundai Engineering built with the Polish government and the client during the project is expected to positively influence additional orders. The project faced difficulties due to external factors such as labor shortages caused by COVID-19 and the Russia-Ukraine war, as well as soaring raw material prices, making it challenging to proceed as planned.

In response, Hyundai Engineering sought cooperation from the local Ministry of Foreign Affairs, actively communicated with the local community where the site is located, supported COVID-19 prevention measures, and employed various methods to keep the project on track. The client also cooperated actively, rewriting the contract twice. This solidified Hyundai Engineering's partnership in Poland.

◆ Additional project wins in Poland... plans to expand market into Europe = In June last year, Hyundai Engineering also won an EPC contract worth about 2 billion euros (approximately 2.7 trillion KRW) from Poland's largest state-owned oil refining company, PKN Orlen, for the 'PKN Olefin Expansion Project.'

This project involves cracking produced naphtha to produce 740,000 tons of ethylene annually, surpassing the scale of the previously won 'Polimery Police PDH/PP Plant' project, making it the largest petrochemical plant construction project in Poland. The project is located in Plock, Mazovia Province, about 120 km northwest of Warsaw.

This project is regarded as the result of Hyundai Engineering's continuous pursuit of a 'basic design-linked EPC order strategy.' Hyundai Engineering has actively strengthened its Front-End Engineering Design (FEED) capabilities, which have been a strength of advanced engineering companies in Europe and the U.S.

Hyundai Engineering plans to solidify its position through additional orders in Poland and expand its market to neighboring European countries. The company intends to successfully complete the first ongoing project, the 'Polimery Police PDH/PP Plant,' and actively pursue additional orders in Poland and entry into neighboring countries.

In particular, Hyundai Engineering expects to continue overseas orders through reconstruction projects in Ukraine in cooperation with Poland. It is anticipated that after the Russia-Ukraine war ends, the combination of Hyundai Engineering's project execution capabilities and Poland's close ties with Ukraine will create synergy effects in reconstruction and recovery projects.

Poland shares a border with Ukraine and is reported to have reached a consensus to collaborate during Ukraine's post-war reconstruction process. The estimated cost for Ukraine's reconstruction is around 500 trillion to 1,000 trillion KRW, and Hyundai Engineering is exploring various ways to participate in the reconstruction projects, including cooperating with local companies through its Polish branch.

A Hyundai Engineering official said, "The continued awarding of symbolic petrochemical plant projects in Europe, including Poland, signifies recognition of Hyundai Engineering's project execution capabilities in new markets," adding, "We will fully leverage Hyundai Engineering's plant design technology and construction capabilities to successfully complete the projects."

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