ID :
52953
Mon, 03/30/2009 - 20:33
Auther :
Shortlink :
https://www.oananews.org//node/52953
The shortlink copeid
(News Focus) S. Korean builders' overseas orders tumble in Q1
SEOUL, March 30 (Yonhap) -- South Korean builders' new overseas orders fell sharply in the first quarter from a year ago due to decreased demand from Asian countries, hit by the global economic recession, industry sources say.
The builders have won orders worth a combined US$8.2 billion from 46 countries in
the January-March period, down 42 percent from $14 billion a year earlier,
according to data released by the International Contractors Association of Korea
(ICAK).
"The decrease in new overseas orders for local construction companies was mainly
attributable to a fall in demand for construction in Asian countries stung by
global economic crisis," said Cho Yoon-ho, an analyst at Daeshin Securities Co.
Orders from Asian countries fell 65 percent to $1.92 billion in the first
quarter from a year ago, while those from Middle Eastern countries plunged 15
percent on-year to $5.65 billion.
The biggest local builder Daewoo Engineering & Construction Co. has received
overseas orders worth $508 million in the first quarter, down 50 percent from
$1.02 billion a year ago, and No. 2 builder GS Engineering & Construction Co.
has won $132 million worth of overseas orders compared with $1.95 billion the
previous year.
In addition to decreased new orders, orders that local big construction companies
have received last year were canceled. On March 20, four major local builders
have received an official notice from the Kuwaiti government that a $6.3 billion
deal to build a refinery in the Middle Eastern country is canceled.
The builders are Hyundai Engineering & Construction Co., Daelim Industrial Co.,
GS Engineering & Construction and SK Engineering & Construction Co.
As of March 30, the number of local construction companies that work abroad was
down 8 percent to 106, compared with 115 a year earlier.
However, the ICAK predicts that the government could achieve its goal this year
as planned because a boom in Middle Eastern construction markets will not change
significantly this year.
"We are somewhat worried over decreased overseas construction orders. But the
government could attain its goal as Middle Eastern countries where local builders
mainly receive orders are expected to continue awarding orders spending their
accumulated oil dollars, despite the global financial crisis" said Kim Tae-yup,
an official at the ICAK.
In the first quarter of this year, Saudi Arabia was the biggest market for South
Korean builders , awarding $1.45 billion worth of orders. Libya ranked second
with $1.2 billion, trailed by the United Arab Emirates with $1.19 billion and
Algeria with $940 million.
The government set its overseas construction order target for this year at $40
billion, considering deepening global economic turbulence.
South Korea saw a record overseas construction order of $47.6 last year stemming
from strong demand for industrial plants in the Middle East.
ksnam@yna.co.kr
(END)
The builders have won orders worth a combined US$8.2 billion from 46 countries in
the January-March period, down 42 percent from $14 billion a year earlier,
according to data released by the International Contractors Association of Korea
(ICAK).
"The decrease in new overseas orders for local construction companies was mainly
attributable to a fall in demand for construction in Asian countries stung by
global economic crisis," said Cho Yoon-ho, an analyst at Daeshin Securities Co.
Orders from Asian countries fell 65 percent to $1.92 billion in the first
quarter from a year ago, while those from Middle Eastern countries plunged 15
percent on-year to $5.65 billion.
The biggest local builder Daewoo Engineering & Construction Co. has received
overseas orders worth $508 million in the first quarter, down 50 percent from
$1.02 billion a year ago, and No. 2 builder GS Engineering & Construction Co.
has won $132 million worth of overseas orders compared with $1.95 billion the
previous year.
In addition to decreased new orders, orders that local big construction companies
have received last year were canceled. On March 20, four major local builders
have received an official notice from the Kuwaiti government that a $6.3 billion
deal to build a refinery in the Middle Eastern country is canceled.
The builders are Hyundai Engineering & Construction Co., Daelim Industrial Co.,
GS Engineering & Construction and SK Engineering & Construction Co.
As of March 30, the number of local construction companies that work abroad was
down 8 percent to 106, compared with 115 a year earlier.
However, the ICAK predicts that the government could achieve its goal this year
as planned because a boom in Middle Eastern construction markets will not change
significantly this year.
"We are somewhat worried over decreased overseas construction orders. But the
government could attain its goal as Middle Eastern countries where local builders
mainly receive orders are expected to continue awarding orders spending their
accumulated oil dollars, despite the global financial crisis" said Kim Tae-yup,
an official at the ICAK.
In the first quarter of this year, Saudi Arabia was the biggest market for South
Korean builders , awarding $1.45 billion worth of orders. Libya ranked second
with $1.2 billion, trailed by the United Arab Emirates with $1.19 billion and
Algeria with $940 million.
The government set its overseas construction order target for this year at $40
billion, considering deepening global economic turbulence.
South Korea saw a record overseas construction order of $47.6 last year stemming
from strong demand for industrial plants in the Middle East.
ksnam@yna.co.kr
(END)
