44262
Daewoo E&C Expanding Business in Iranian Market
Economy, Business And Markets

Daewoo E&C Expanding Business in Iranian Market

South Korea’s Daewoo Engineering & Construction, which has been engaged in the Iranian market for decades, has sought to expand its business in the country at a faster rate, following the lifting of western sanctions against Tehran over its nuclear program.
Following the 1980-88 Iraq-imposed war, Khorramshahr Port, the biggest trade port of Iran, was disabled. As a result, Iran had no choice but to shift the distribution foothold to the only available port, Bandar Abbas Port, for which the construction of a railroad was inevitable.
In 1984, Daewoo E&C won a contract to construct Lot 6 of the Bandar Abbas-Bafgh Railroad, which became its first stepping into the Iranian market, reads an article published by South Korean magazine Business Korea.
Later, the company consecutively won the contract to construct the Lots 4-B and 4-A of Bandar Abbas-Bafq Railroad.
Daewoo E&C showed a perfect performance in difficult mountainous terrain and rugged environments like flood, and carried out a variety of construction projects, including the restoration construction of Kharg Island oil terminal in 1991.
In May this year, South Korean President Park Geun-hye made a state visit to Iran to meet her Iranian counterpart, Hassan Rouhani. Daewoo E&C accompanied as a member of the economic mission and signed two memorandums of understanding for the construction of road and refinery facilities worth $1.5 billion.
Daewoo E&C and Hyundai Engineering & Construction signed a joint business agreement worth $10 billion with Bahman Geno Refinery Company to construct refinery facilities.
Moreover, the construction of the Tehran-North Freeway’s Section 3, which will be conducted by Daewoo E&C alone, is estimated to be worth $1.5 billion.
Amid the continuously shrinking construction of petrochemical plants due to the prolonged low oil price, new construction orders from Iran might be an opportunity for South Korean builders to break through the recession. In addition to the plant construction, various infrastructure construction projects for power generations, bridges, roads and railroads are expected to come on stream in Iran.
However, many obstacles exist alongside high expectations. An official of Daewoo E&C said South Korean construction companies are watching Iran as an emerging market.
“We understand there are some ongoing efforts of the domestic construction companies and the Korean government to solve the problem. We hope the Iranian government also put a joint effort to solve the problem by providing the government guarantee aggressively,” the Daewoo official said.

Short URL : http://goo.gl/aMgqFY
  1. http://goo.gl/9PNo30
  • http://goo.gl/lxU3ol
  • http://goo.gl/EsjfJp
  • http://goo.gl/lACNMs
  • http://goo.gl/EZNepW

You can also read ...

CBI Outlines Top Priorities
The governor of the Central Bank of Iran, who took the reins...
Non-Oil Trade Value With Egypt Tops 80%
Iran traded 298,616 tons of non-oil commodities worth $128.23...
Interest Rate Growth Gathers Pace
Two major banks have been allowed by the Central Bank of Iran...
Domestic Shoe Industry Hit by Raw Material Shortage
Domestic shoe production has declined by over 70%, the head of...
Colza Production Breaks 30-Year Record
Colza production in Iran since the beginning of the current...
IKCO to Deliver Presold Peugeot 2008 SUVs
Extending apologies for the prolonged delay in the delivery of...
Rail Exports From Qom to CIS Grow 29%
More than 3,403 tons of goods were exported via railroads from...
Tehran to Host Handmade Carpet Expo
The 27th Iran Handmade Carpet Exhibition is scheduled to open...

Trending

Googleplus