KEPCO E&C, Overall Leader with USD 663 mm … Dohwa, Construction Leader with USD 156 mm
SEOUL, May 12 (EngineeringDaily) -- This month, the statistics of last year’s engineering contracts were made public, allowing a deeper view into the state of the Korean engineering market. Considering all contracts completed in 2013, the 2,267 Korean firms who submitted their information generated USD 6.49 billion combined in the domestic and international markets. KEPCO E&C became the top firm last year, with Dohwa Engineering the top in the construction sector.
KENCA (May 12) said Korean engineering firms generated USD 6.49 billion from contracts in 2013, while KENCA (Korea Engineering & Consulting Association) surveyed 3,989 firms and obtained results from 2,267 companies. Of the total, USD 5.27 billion was domestic and USD 1.22 was international.
"Korean firms showed strong performance in the Asian region, shown by Hyundai Engineering’s award of USD 1.95 million? to an energy project in the Philippines. And Hyundai is not the only company to contribute. Increases in the financial support of similar mega projects and geographical assessments demonstrate the positive state of many Korean firms," staff of KENCA said.
In the total overall ranking, involving construction and other areas, KEPCO E&C was ranked first with 69 projects and USD 663 million sales. The following are the other top ranked companies with their number of projects and total sales for 2013: ▶2nd Hyundai Engineering 62, USD 623 million ▶3rd Daelim 7, USD 256 million ▶4th POSCO Plantec 34, USD 192 million ▶5th Dohwa 423, USD 188 million.
E (Engineering) and D (Design) results submitted to KENCA were included in the statistics among EPC firms. Samsung Engineering, Hyndai E&C and etc. were not included.
In the construction sector ranking, Dohwa was ranked at the top with 351 projects and USD 156 million sales. Other major companies ranked as follows: ▶2nd Saman 229, USD 93 million ▶3rd Kunhwa E&C 278, USD 84 million ▶4th KECC 211, USD 81.89 million ▶5th WARECO 21, USD 81.70 million.
▼ Detail Design 38.55%, less than USD 490,000 projects 59.5%
One major industry trend shown in the statistics is the result showing that the ratio of planning and feasibility study decreased to 3.5% in 2013 from 17.8% in 2012, concept design 7.5%→13.6%, detail design 7.5%→13.6%, supervision (excepting the construction sector) ‧ project management 12.9%→4% and start-up operation ‧ maintenance 7.7%→4.2%.
"Although the concept-based phenomenon continues, it is just to complete follow-ups of the previous year's works. Thanks to the increase of concept design, it is expected detail design will increase a little. However, due to the decrease of planning and F/S, designs will likely diminish," staff of KENCA said.
He also added that responsible supervision of construction engineering was excluded from the data, while others were included such as ICT, harbor, and environment.
Classifying the existing engineering companies onto a business scale, small businesses account for about 90% of the Korean engineering industries. With an average sales of more than USD 4.9 million were 170 firms (7.7%), another USD 490,000 ~ USD 4.9 million were 728 firms (32.9%), another USD 97,000 ~ USD 490,000 for 960 firms (43.4%), and finally less than USD 97,000 for 353 firms (16.0%).
Further classifying by engineering technology, the statistics showed construction at 45.3%, machinery-atomic energy-electricity-chemistry (Plant) 38.8%, ICT 4.4%, and a remaining 10%.
By Joon-Hee Lee
