Hyundai Heavy Industries wins $1.6bn Saudi power plant deal

Hyundai Heavy Industries wins deal

The world's largest ship builder, Hyundai Heavy Industries, has won a US$1.6 billion contract to build an independent gas power plant in Saudi Arabia.

Hyundai Heavy Industries, a South-Korea based company will be the sole contractor to build a 1,759-megawatt power plant 125 kilometres west of Riyadh by March 2013, the company has said. The firm won the Riyadh PP11 IPP project from the Dhuruma Electricity Company, which is part of the Saudi Electricity Company.

The total cost of the project is estimated to be in excess of US$2 billion and forms part of the kingdom's plans to expand its electricity output, reported Arabian Business.

In October 2009, Hyundai Heavy Industries signed a record US$2.6 billion order to build processing facilities in Australia for Chevron Corporation's Gorgon project and South Korean companies in general are forecasted to gain record-breaking numbers of overseas projects this year, helped massively by demand across the Middle East.

Hyundai's increasing work in the ME

Projects in the Middle East have already, in fact, led to a huge boost in revenue for Hyundai Heavy Industries. Earlier this year, Hyundai Heavy Industries increased the value of its Middle Eastern portfolio to US$4.4 billion, after forming a partnership with HBK Contracting to work on the first stage of Doha's Musheireb project: a residential and cultural development worth approximately US$5.5 billion.

Hyundai Heavy Industries said: "Middle Eastern countries continue to place orders for large power plants thanks to steady industrialisation and economic growth even amid the global financial crisis. This deal will help us greatly in winning more plant construction orders in the region."

Over the next decade, Saudi Arabia is planning on pumping around US$80 billion into its electricity sector.

Hyundai Heavy Industries believes that the buoyant oil prices in this region will "accelerate the presence of Hyundai Heavy Industries in the industrial plant sectors in this region, as well as in other global markets."

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