Hyundai E&C, London branch ‘closed’, Libya branch ‘reopened’… Overseas Organization Reorganization

Chinchero International Airport is an under construction international airport in the town of Chinchero District, Cusco Region, Perú. It is planned to replace Alejandro Velasco Astete International Airport.^[3] Its altitude will be 3,720 metres (12,200 ft) above sea level.

Hyundai Engineering and Construction (Hyundai E&C) is restructuring its organization to achieve its overseas business targets amid the domestic real estate economic downturn. The company plans to use a strategy of ‘selection and concentration’ in its overseas business, which involves disposing of branches in countries where orders are relatively slow and establishing new branches in countries identified as new markets.

This year, Hyundai E&C’s overseas order target is 5.7 trillion won, which is twice as high as last year’s performance. To achieve this target, the company has closed its London and Ecuador branches while reopening its Libyan branch. The London branch had not received any European business orders for over eight years, while the Ecuador branch was closed to focus on Panama and Peru, where Hyundai E&C is currently carrying out several construction projects.

The company aims to win orders for the Lima Metro Construction Project in Peru while resuming the construction of the Tripoli West thermal power plant in Libya. Hyundai E&C has accumulated close to $6.4 billion in sales since entering the Libyan market in 1980, and its current order backlog is about $2.6 billion.

Additionally, Hyundai E&C is considering the establishment of an Australian branch to enter the Australian construction market, which is focusing on infrastructure development through public-private partnership (PPP). The company’s move is part of its strategy to expand its overseas market and achieve its order targets. Last year, Hyundai E&C’s performance was about 3.2 trillion won, and it aims to double this performance this year.