As of the third quarter, Korean builders' cumulative overseas orders this year exceeded $41.33 billion, raising the likelihood of achieving the annual target of $50 billion. This month, Samsung Heavy Industries won a project worth about $2.8 billion in the United States, meaning the target can be met if roughly $6 billion more is booked in the remaining fourth quarter.
According to the International Contractors Association of Korea on the 13th, Korean builders' cumulative overseas orders as of the third quarter this year came to $41.33 billion. That was up 95.8% from the same period a year earlier ($21.112 billion).
It is the first time in 11 years that overseas orders surpassed $40 billion in the first through third quarters. By year, cumulative overseas orders through the third quarter were ▲2014 $48.3 billion ▲2015 $34.5 billion ▲2016 $18.7 billion ▲2017 $21.3 billion ▲2018 $22.2 billion ▲2019 $16.5 billion ▲2020 $18.5 billion ▲2021 $17.4 billion ▲2022 $22.4 billion ▲2023 $23.5 billion ▲2024 $21.1 billion.
Through the third quarter this year, a total of 230 Korean construction companies won 441 overseas projects across 97 countries. Compared with the $21.112 billion booked in the same period a year earlier, the amount rose 96%, while the number of projects increased 3%.
Europe, in particular, stood out with $19.82 billion, accounting for nearly half of total overseas orders. Europe's share of overseas orders expanded from 6.3% in 2023 to 13.6% last year, roughly doubling year over year, and further to 47.9% in the first through third quarters this year. In June, Korea Hydro & Nuclear Power (KHNP) won $18.722 billion from the Dukovany 2 nuclear power plant project in the Czech Republic, driving the overall tally.
By region for the third quarter this year, Europe had the largest share at 47.9%, followed by the Middle East at 26.5%, Asia at 11.5%, North America and the Pacific at 11%, Latin America at 1.6%, and Africa at 1.5%.
Orders from the Middle East totaled $10.949 billion, down 8.3% from last year ($11.94 billion) as lower oil prices shrank the tender market. New Middle East wins this year include Samsung C&T's Al Dhafra OCGT IPP project in the United Arab Emirates (UAE) booked in Apr. ($481 million) and the Dukhan solar project in Qatar booked in Aug. ($1.047 billion). Samsung E&A won the TA'ZIZ methanol project in the UAE in Jan. ($1.685 billion).
By type of work, industrial facilities were strong while building and civil works were weak. Orders for industrial facility projects—such as European nuclear power, Middle East power and methanol plants, and Asian phosphoric acid plants—reached $33.57 billion, accounting for 81% of the total.
Industrial facility orders increased from $15.8 billion in 2023 to $24.3 billion last year and rose a further 38% this year from a year earlier. Building orders were $4.56 billion (11.0%), and civil works were $1.34 billion (3.3%). Year over year, building and civil orders fell 12% and 24%, respectively.
An official at the International Contractors Association of Korea said, "Energy security amid political uncertainty and economic and industrial development are increasing power demand," and noted, "Orders for power projects such as the Czech nuclear plant, Qatar solar power, and Saudi combined-cycle power are steadily increasing."
Industry officials see it as highly likely that the $50 billion overseas order target will be reached by the end of this year. They say that with 82.6% of the annual target already achieved as of the third quarter and given that large-scale tenders are typically placed at year-end, securing roughly an additional $7.7 billion should not be difficult.
An overseas construction industry official said, "Samsung Heavy Industries this month won a $2.8 billion floating liquefied natural gas production storage unit (FLNG) project in Louisiana, United States," and added, "Including this, overseas orders this year have exceeded $44 billion, and because domestic builders typically concentrate major project wins at year-end, the $50 billion target should be readily achievable."