Hyundai Heavy Clinches $3.3 Billion Deal to Build Thermal Power Plant in Saudi Arabia

South Korea's Hyundai Heavy Industries (HHI) won a $3.3 billion order to build a steam power plant in Saudi Arabia.

Under the deal signed with Saudi Electricity Co., Hyundai will complete the massive facility with a production capacity of 2,640 megawatts by 2017 thermal power plant on a turnkey basis taking responsibility for all processes from design to equipment manufacturing and supply, construction, and pilot operation.

The plant will be located 135 kilometers (85 miles) north of the southwestern Saudi city of Jizan, it said.

HHI is the world's top shipbuilder, but also constructs power and water plants. In October last year, the company won a $3.2 billion order to build a thermal power plant near Jeddah.

"The Middle East region, despite the global slowdown, still invests heavily in infrastructure thanks to high oil prices and steady population and economic growth," Hyundai said.

"We expect more orders in the future from the Saudi government, which puts a top priority on increasing power and water desalination capacity," it added.

Since November last year when the technical bidding has begun, the company has competed fiercely with ten or so world-class construction contractors and was selected as the preferred negotiating partner in May this year. Earlier in October last year, Hyundai Heavy had won a $3.2-billion order from the same Saudi Electricity Company to build a large thermal power plant in Jeddah jointly with Japan's Mitsubishi.

Korea Times / Business Tech