The Ministry of Trade, Industry and Energy has recently announced that Korea had recorded a historichigh contract amount for overseas plants in the 1st half of 2014, amounting to USD 33.7 billion.

It is even more meaningful that this achievement was reached considering the numerous challenges, such as political uncertainty in Middle Eastern markets including Iraq and the decline in contracts for offshore plants.

Contracts in the 1st half of 2014 grew by 20.2% yearon-year (from USD 28 billion), thanks to robust contracts for oil and gas plants and healthy performance in traditional markets, including the
Middle East, Africa and the Americas.

More notably, contracts in Africa as a new plant market reached a historic high in the 1st half of 2014 (USD 5.6 billion), signaling steady growth in the African market. In addition, the growth in contracts won through consortiums of domestic businesses is a noteworthy trend.

By region, contracts in the Middle East, Africa and the Americas increased significantly compared to the same period in the previous year, thanks to robust contracts for large-scale oil, gas and power projects, but contracts in the EU and in Asia decreased due to declines in contracts for offshore plants and industrial facility projects.

In terms of facilities, contracts for power generation, oil refinery and petrochemical projects led the growth in contract amount for the 1st half, accounting for 87% of the total contract amount, while contracts for offshore plants, industrial facilities, materials and equipment

It is expected that contracts for large-scale projects will continue to be secured in the 2nd half of 2014, thanks to expectations of a global economic recovery and industrial infrastructure building in emerging countries, but there are factors that may decrease contracts won due to extended difficulties in the Middle East.

Meanwhile, the Ministry of Trade, Industry and Energy, Korea Plant Industries Association and the Korea Association of Machinery Industry jointly organized “the Forum for Plant EPC Materials and Equipment Cooperation” to discuss measures to reinforce the competitiveness of domestic materials and equipment.

 
 
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