Korean Shinhan E&C Co., Ltd. leads housing improvement business in Libya
Korean Shinhan Eng. & Const. Co., Ltd. has been making overseas construction history. This year is the 40th anniversary of the company. Since it was incorporated in 1968, Shinhan has successfully promoted development projects in many countries including the United Arab Emirates, Ecuador, Saudi Arabia, Iran, the Bahamas, Nigeria, Eritrea, China, and the US. Now, the company is a leading overseas developer with over 50 successful bids (totaling $10 billion). Chairman Choon Hwan Kim said, “The bids won by Korean Shinhan E&C Co., Ltd. this year for overseas development projects total USD 1.8 brillion. If domestic projects are included, the figure rises up to USD 2.4 billion. He added, “We have already become a major global engineering and construction company and are now making new history in the construction industry.”
Korean Shinhan E&C Co., Ltd. constructed an oil refinery in Singapore in 1972, which was the first overseas plant construction fir a Korean company. In 1977, the company constructed an unsaturated polyester manufacturing plant in Saudi Arabia based on the turnkey process.
This kind of outstanding achievement was possible because of Chairman Kim’s devotion to field management and his friendly and generous personality. He has shown great leadership by visiting the minister and vice minister from the Organization for Development of Administrative Center (ODAC) and the Housing and Infrastructure Board (HIB) in person.
|| Korean Shinhan E&C’s (KRW 22,800, 800+3.6%) achievements have been remarkable. The company has won several consecutive bids for large-scale projects in Libya. It first won the bid to develop 5,000-household apartment buildings (over USD 440 million) in Tripoli, the capital of Libya in August 2007. The company won additional bids for the Zliten housing infrastructure project (24 million㎡, USD 467 million) in October and the Al Khums road development project (10.9 million㎡, USD 137 million) on Nov. 13. In addition, the company won a bid for pipe laying (24million ㎡) and underground installation path construction in Zliten on December 3. The next day, the company won an additional bid for a 5,000-household apartment project (USD 785 million) which includes development of the Azzawiyah housing infrastructure and sewage treatment plant. As a result, the company has won bids for a total of USD 1.8 billion in projects within just 4 months, making construction history in Libya.
The chairman said, “In a bid for this Libyan government-led project, many engineering and construction companies from many countries including China and Turkey participated. Therefore, the competition was very tough.” He continued, “However, we were the final winner because of our great knowhow in engineering and construction and decent reputation.”
In particular, the company received an advance payment guarantee from the Libyan government because of its high reputation even though the bill in most overseas construction projects is usually paid upon completion.
A chairman’s wife and vice chairman, Kyung Sun Cho, said, “Shinhan turned out to be the only one qualified for the advance payment guarantee from the local bank. Therefore, we are entitled to 25% (USD 160 million) of the contract amount of the 5,000-household apartment project in Tripoli in advance.”
She continued, “The Libyan government has great faith in us. The Libyan government officials visited us on Nov. 20 and thoroughly investigated our records and plants for two weeks. After the investigation, they even signed additional deals with us.”
Korean Shinhan E&C Co., Ltd. decided to go abroad in 2004 when the domestic apartment construction market was at its climax.
"I thought that a crisis would soon follow after the skyrocketing boom in the construction sector. That’s why we turned our eyes to overseas construction.”
Actually, Chairman Choon Hwan Kim’s and vice chairman Kyung Sun Cho’s fluent English skills and wide range of connections with people from all over the world have been helpful in winning the bids in Libya.
The chairman said, “We will achieve another miracle here in Libya. At present, the Libyan government is promoting a large-scale housing improvement project just like our Saemaeul Movement. We will accomplish remarkable achievements in the road, railway, and sewage treatment plant as well as the apartment development.”
Korean Shinhan E&C Co., Ltd. is scheduled to develop a 5,000-household apartment once the housing infrastructure development projects in Zliten (24 million㎡) and Al Khums (10.9 million㎡) are completed. Therefore, it’s very likely that the company will win an additional bid for a 10,000-household apartment development project.
Additionally, it’s expected that Shinhan will accept the job of developing the College of Information and Telecommunication, College of Pharmacy, faculty apartments, and boys’ and girls’ dormitories in Azzawiyah University and an additional 4,000-household apartment complex.
The chairman said, “In 2001, I promised directors and employees that we will definitely win USD 2.1 billion in bids. Now, I’m very glad that I kept that promise.” He continued, “In addition to the overseas projects, we will diversify and expand our business here in Korea including Cheonan Multi-purpose Railway Station & Shopping Mall, MZN apartments and golf course.” He added, “We will devote all our resources and energy in order to achieve our ultimate goal of becoming a Digital Global Developer.”
※ Vice chairman of Korean Shinhan E&C Co., Ltd., Kyung Sun Cho, is discussing a housing development project with a director from HIB.