Hyundai Construction "Expanding Overseas and Energy Businesses This Year"

Selection and Implementation of Key Management Strategies
Securing Super-Gap Technologies in Core Areas

Hyundai Engineering & Construction has selected expanding the energy value chain and expanding high value-added overseas businesses as its key management strategies for this year and is actively pursuing them.

On the 5th, Hyundai Engineering & Construction announced that it will secure super-gap technologies in core areas as a way to overcome the internal and external crises facing the construction industry. The key initiatives include ▲continuous expansion of overseas businesses ▲expansion of the power generation business domain and full-scale launch of renewable energy power brokerage business ▲securing next-generation growth engines such as hydrogen and CCUS (carbon capture, utilization, and storage).

Hyundai Construction Gyedong Office. [Photo by Hyundai Construction]

This was previously mentioned by President Yoon Young-jun of Hyundai Engineering & Construction in a New Year's letter to employees. President Yoon emphasized, “We will strategically focus on core businesses such as large nuclear power plants and SMRs, as well as future technology development like hydrogen and CCUS.”

First, the strategy for continuous expansion of overseas businesses is divided into three main areas: entry into the European nuclear power market, establishment of the nuclear value chain, and overseas orders for non-competitive, high value-added businesses. Regarding entry into the European market, the plan is to accelerate entry into the large nuclear power plant sector in Europe based on orders for the tritium removal facility project at the Cernavoda nuclear power plant in Romania and partnerships with institutions such as the Polish Nuclear Research Institute.

Additionally, the establishment of the nuclear value chain includes the entire nuclear lifecycle such as small modular reactors (SMRs), nuclear power plant decommissioning, and spent nuclear fuel facilities. Currently, through close cooperation with Holtec in the United States, Hyundai Engineering & Construction has become the first domestic construction company to begin design of the first U.S. SMR unit and is pushing for joint entry into more than 15 countries, aiming to secure a leading position in the global nuclear power market.

For overseas orders of non-competitive, high value-added businesses, Hyundai Engineering & Construction has secured an exclusive partnership status with Saudi Aramco, expecting non-competitive contract awards rather than price-competitive bidding, and plans to expand entry into high value-added businesses such as LNG.

Expansion of the energy business value chain covers the entire power generation business from early project development to operation, including EPC (engineering, procurement, and construction) in renewable energy sectors such as solar power, offshore wind power, and biogas. Based on partnerships established last year for joint development of solar power projects in the United States and offshore wind power projects in Korea, Hyundai Engineering & Construction plans to diversify its energy business and expand its business domain.

Furthermore, the company will also fully launch a platform-based renewable energy power brokerage business. Last year, Hyundai Engineering & Construction incorporated “renewable energy electricity supply business and small-scale power brokerage business” into its articles of incorporation and established a specialized organization, accelerating the promotion of new energy businesses in the power brokerage sector.

Hyundai Engineering & Construction is also focusing its capabilities on securing next-generation growth engines through technological innovation. In particular, it views hydrogen and CCUS as new opportunities in the future energy and plant markets and is strengthening business capabilities through internalization of core technologies. Based on hydrogen plant design capabilities secured through basic design of Korea’s first water electrolysis-based hydrogen production base and conceptual design for 12.5MW green hydrogen production demonstration in Jeju, the company plans to secure differentiated advantages in construction and operation fields as well.

Moreover, it plans to accelerate entry into domestic and overseas CCUS projects by strengthening original technology capabilities across the entire value chain of carbon capture, utilization, and storage. Hyundai Engineering & Construction is currently performing basic design and EPC (engineering, procurement, and construction) for natural gas plants such as the Boryeong clean hydrogen project and Papua New Guinea LNG downstream, and intends to enhance technological capabilities through related projects and research.

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