[Exclusive] Hyundai Livart's Iraq Project Also Halted by US-Iran War

First Major Order Under Min Wangil: 120 Billion Won Iraq Temporary Construction Project
War Erupts the Day After Contract Signing, Creating Uncertainty Over Workforce and Material Deployment

Hyundai Livart hit a jackpot with an overseas order worth approximately 110 billion won, only to immediately encounter the obstacle of war in the Middle East. The company's key strategy to offset sluggish performance has been hindered by the outbreak of war, putting the first steps of the newly launched "Min Wangil administration" at risk this year.

According to industry sources on March 5, the "Iraq Basra Seawater Treatment Facility Temporary Construction Project," which Hyundai Livart was scheduled to execute, has been completely halted in terms of on-site personnel deployment and material shipments. Temporary construction refers to preliminary work that establishes basic infrastructure such as accommodations, offices, and temporary roads needed for large-scale plant projects in sectors such as refining, gas, and petrochemicals. On February 27, Hyundai Livart announced via disclosure that it had finalized a contract for this project with Hyundai Engineering & Construction worth approximately 114.1 billion won (80.1 million dollars). The order value corresponds to 6.1% of the company's 2024 consolidated revenue and about 18% of its B2B (business-to-business) division revenue.

However, the situation changed drastically the very next day, on February 28, due to the outbreak of war between the United States and Israel against Iran. Hyundai Livart had originally planned to deploy personnel from mid-March and transport materials to the site through both domestic and overseas bases. However, these plans have been temporarily suspended as Iran attacked neighboring countries and the closure of the Strait of Hormuz paralyzed logistics networks. A Hyundai Livart representative stated, "We are monitoring the situation," and added, "We expect to hear from the client first."

This crisis is also expected to pose a burden for Min Wangil, who was appointed as CEO in January this year. Hyundai Livart suffered a 34.6% year-on-year decrease in provisional consolidated operating profit for 2025, posting 15.7 billion won and signaling continued sluggish performance. Last October, Hyundai Department Store Group carried out a rare leadership change among its affiliates and brought in CEO Min as a "relief pitcher." The market had anticipated a turnaround in performance through the expansion of the B2B business.

The Iraq Basra Seawater Treatment Facility project is a massive 4 trillion won undertaking to build a seawater treatment plant near the Khor Al Zubair port, located about 500 kilometers southeast of Baghdad. The project is a joint investment by the French energy company TotalEnergies, Basra Oil Company (under the Iraqi Ministry of Oil), and QatarEnergy, the state-owned oil company of Qatar. Hyundai Engineering & Construction secured the entire project contract in September last year. Hyundai Livart was assigned responsibility for the temporary construction work, including the establishment of accommodations and other basic facilities required for the site operations.

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