Stable Construction
Hyundai Engineering is expected to exceed US$40 billion (43.66 trillion won) in cumulative overseas order value by the end of this year.
Starting its overseas expansion in 1974, Hyundai Engineering’s cumulative amount of overseas orders amounted to only US$800.12 million (8.73 trillion won) for 36 years until 2010.
However, the figure stood at US$26.12 billion (28.51 trillion won) for four years and three months from 2011 to the first quarter of this year, which is a 226.5 percent increase from the figure 36 years ago.
The company also won the Kandym Gas Plant project in Uzbekistan worth US$2.7 billion (2.9 trillion won) at the end of last year.
In 2011, Hyundai Engineering was acquired by Hyundai Motor, along with Hyundai Engineering & Construction. The construction industry believes that the growth of Hyundai Engineering in the past four years is largely due to the benefit from the takeover by Hyundai Motor Group.
After the company signed the contract in Uzbekistan in 2011, the first year that it join the group, it carried out five contracts worth a total of US$4.10 billion (4.47 trillion won), and was also awarded a total of 3 gas turbine plant projects worth US$620 million (676.7 billion won) from the Iraq Electricity Board at the same time.
Moreover, Hyundai Engineering gained a foothold in the new renewable energy market, as it received an order of a geothermal power plant project in Kenya.
The company turned over only 1.24 trillion won (US$1.13 billion) in sales in 2010, but it recorded 6.39 trillion won (US$5.85 billion) in 2014. Its operating profits also increased significantly from 159.2 billion won (US$145.85 million) in 2010 to 408.4 billion won (US$374.16 million) in 2014.
Hyundai Engineering climbed from 69th place in 2010 to 33rd in 2014, which is the highest level in Asia, in the overseas design firm rankings by ENR, a U.S. magazine for construction and engineering professionals.
The company’s credit rating was also upgraded from “A- (positive)” to “AA- (stable)” in 2014. In particular, Hyundai Engineering attracted attention, as its credit rating exceptionally improved in 2014 when the construction industry faced a slump.