The Export-Import Bank of Korea and Korea Trade Insurance Corporation have each committed $400 million to Hyundai Engineering’s construction project in Poland. Sources familiar with the discussions informed ChosunBiz that both entities recently jointly agreed to provide $800 million in financial support for the Engineering, Procurement, and Construction (EPC) of the ‘Expansion of the Olefins Complex’ project, constituting 26% of the total project cost.
Situated in the central Płock region of Poland, approximately 120 km northwest of Warsaw, the project involves a significant expansion of a petrochemical plant aiming to produce ethylene, with an annual capacity of 740,000 tons. The ethylene production will utilize locally sourced naphtha.
In June 2021, Hyundai Engineering, in collaboration with Técnicas Reunidas, secured the project contract from Orlen, Poland’s largest state-owned company. The Export-Import Bank and Trade Insurance Corporation committed to financial involvement even before the bidding process, with the level of support determined after a review.
Per the agreement, the Export-Import Bank and Trade Insurance Corporation have pledged their support for the project, with the condition that materials produced in Korea are utilized to the maximum extent possible. In addition to these two entities, eight foreign official export credit agencies (ECA) have also contributed to funding the project.
“It is our understanding that the decision to extend financial support for the construction project was reached after a meticulous evaluation of the client’s creditworthiness and the credit rating of the country,” said an official from Hyundai Engineering.
They added, “Although it may not reach 100%, the construction will prioritize the use of domestically produced materials to the greatest extent possible.”
Hyundai Engineering stands as the sole Korean company establishing a presence in the European petrochemical plant market. In 2019, it secured the contract for the $1.1 billion ‘Poland Polimery Police PDH/PP Plant’ and has subsequently garnered additional orders in the Polish EPC market. Looking ahead, the company has intentions to actively engage in reconstruction projects in Ukraine.
