July 20, 2008

South Korean firms win more projects in Middle East

Arirang News reported that South Korean construction companies are on a plant rush in the Middle East where oil cash has brought on a boom in big scale projects.

As per report, Qatar, home to the world's third largest natural gas reserves is offering a big market for Korea's construction businesses. In Ras Laffan construction of an industrial complex is in full swing and Hyundai Engineering and Construction is building a plant there that changes gas into liquid.

LG Engineering and Construction is building a factory in Egypt that will turn crude material into synthetic detergents. The first shovel hit the ground for the 200,000 square meter plant in 2005 and it is about to be completed months before the date on the contract.

The amount of overseas construction projects by Korean companies has been on the rise in recent years, posting a twofold increase in just a year from 2006 to 2007. Projects won during the first four months of this year have already surpassed those won in all of 2006.

The latest big deal was the winning of a project to construct an ultra size oil refinery plant in Kuwait worth USD 15 billion by a consortium of Korean companies.

With greater competitive edge in technology and shorter construction times, Korean businesses are expected to continue to pave the way in the Middle East's booming high end construction market.