Hyundai E&C steps closer to $10b goal

Hyundai Engineering & Construction, Korea’s biggest construction company, is looking to achieve $10 billion in orders globally this year.

As the builder secured a line of projects overseas, its orders, including for a Qatari highway construction and Saudi Arabian alumina refinery, are expected to amount to already half of its target by the end of next month, analysts said.

Potential projects such as Venezuelan refinery and Indonesian geothermal power plant are also in the pipeline, which would further spur Hyundai E&C to reach its $10 billion target within this year, they noted.

This is in line with the company’s plan to become among the top 10 construction players in the world by 2020 by diversifying its project portfolios and markets.

Hyundai E&C CEO Jung Soo-hyun told local media that the company will also aim to reach its dream by investing in human capital and proprietary engineering technology.

As it eyes orders worth $10 billion in total, the company aims to boost the portion of its overseas business to account for nearly 60 percent of sales.

The company is likely to further seek new market opportunities through synergies and networks with its affiliates such as Hyundai Steel, Hyundai Rotem and Hyundai Engineering, analysts said. Hyundai Motor Group acquired Hyundai E&C last year in a heated bidding competition with Hyundai Group.

Hyundai E&C had sales of 2.7 trillion won in the first quarter of this year, up 18.4 percent from 2.3 trillion won a year ago. Its operating profit reached 153 billion won, up 7.4 percent from 143 billion won in the same period, according to a regulatory filing.

The Korean builder has about 20 offices overseas including the Middle East and Africa.

By Park Hyong-ki  (hkp@heraldcorp.com)