On October 16th, Hanwha E&C (CEO Lee Geun-po) announced that the company received the fourth deposit of US$387.5 million for the construction of Bismayah New City in Iraq, the largest overseas construction project ever for a Korean company worth US$8 billion.
Hanwha E&C already received the first deposit of US$775 million (10 percent) in October 2012, the second in October last year, and the third one of US$387.5 million (5 percent) in April this year.
Including the fourth receipt, Hanwha E&C has secured a deposit of US$1.9375 billion, 25 percent of the total construction cost. In May 2012, Chairman Kim Seung-yeon of Hanwha E&C, strongly determined to lead “the second Middle Eastern boom,” visited Iraq several times to win this deal.
CEO Lee Geun-po of Hanwha E&C said, “Successful receipt of deposit this time proves the strong confidence of the Iraqi government in Chairman Kim Seung-yeon and the great capabilities of Hanwha E&C in construction performances. Even during the civil war in Iraq, Hanwha E&C employees and subcontractors are very devoted to proceed with the construction.”
The Bismayah New City Project is expected to create 550,000 jobs annually, as over 100 subcontractors and 1,500 professionals in Korea are moving together with Hanwha E&C. This project is also a very good case of the cooperation of a big conglomerate and small companies.
Updated 20 Oct 2014 | Soruce: Business Korea | By S.Seal