Hyundai Engineering made an announcement on June 1 that it signed a joint investment contract with Korea Overseas Infrastructure & Urban Development Corporation (KIND), Poland's largest petrochemical group Grupa Azoty and Poland's large oil refinery LOTOS on May 29 for the project "Poland Police PDH/PP Plant."
The "Poland Police PDH/PP Plant" project, which Hyundai Engineering won in May last year, is the largest project ever won by a Korean builder with an order value of about $1.12 billion (about 1.3 trillion won) to build polypropylene production facilities, ports and auxiliary infrastructure in the Polish Police region.
Hyundai Engineering, KIND, Grupa Azoty, and LOTOS will invest a total of $733.3 million in the Polish project, of which Hyundai Engineering and KIND will invest a total of $130 million.
As face-to-face talks were impossible due to the COVID-19 crisis, it was difficult to negotiate investment details, but the project is expected to accelerate as it succeeded in signing the main contract for joint investment in a timely manner by actively utilizing online means such as conference calls and e-mail.
Through this main contract, Hyundai Engineering is expected to be able to generate long-term high value-added profits through equity investments as well as profits from EPC implementation by participating in the operation stage after the completion of the plant project.
Meanwhile, the Polish plant will produce 400,000 tons of polypropylene annually after completion. The polypropylene produced can be used in a wide range of industries, including auto parts, artificial fibers and various daily necessities, which is expected to contribute greatly to Poland's economic development through exports as well as domestic sales.
A Hyundai Engineering official said, "Through close cooperation with KIND, we were able to complete this joint investment main contract following last year's EPC order for the Police project," and added, "As an EPC contractor and equity investor, we plan to focus our entire company's capabilities on making this project go smoothly."