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The Rise of Construction Opportunities in Poland: A Closer Look at the PKN Olefin Expansion Project

“It is a gateway to Europe and a logistics hub.” President Yoon Seok-yeol, who officially visited Poland last year, said this about Poland. Among construction companies, expectations are growing that they can use Poland as a stepping stone to participate in reconstruction projects after the Ukraine War. I personally met Korean construction workers who were rushing to seize opportunities in Poland, an unfamiliar country in Eastern Europe. [편집자주]

A panoramic view of the PKN olefin expansion project site in Puotsk, Poland. /Hyundai Engineering

On the 22nd, I arrived in the Plock area after driving about two hours northwest of Warsaw, Poland. The petrochemical complex of Poland’s largest oil refinery, PKN Orlen, could be seen in the distance. Tall chimneys blew plumes of fire to remove hydrogen sulphide (H2S), an acidic gas produced during the oil refining process.

After driving another 15 minutes from the point where the current petrochemical plant came into view, the site of the ‘Poland PKN Olefin Expansion Project’ appeared, for which Hyundai Engineering had won an order with Spanish construction company Technica Reunidas (TR). As this is the largest petrochemical complex in Europe, the huge splitter that can be seen suddenly from afar caught the eye.

When we entered the construction site, the plumbing was currently in full swing. The largest propylene production facility on site, ‘C3 Splitter’, was installed last year, and yellow pipes were being laid one by one around it. A splitter refers to propylene production equipment for the cracking process. Civil engineering work for the installation of machinery was also underway ahead of the splitter.

Site view of Hyundai Engineering’s ‘Poland PKN Olefin Expansion Project’ on the 22nd of last month / Reporter Oh Eun-seon

◇ “Business and risk management capabilities are already proven in Poland”

The PKN Olefin Expansion Project is a large-scale project to build an ethylene production plant with an annual capacity of 740,000 tons. The construction cost alone is equivalent to KRW 4.0352 trillion, and the maximum number of personnel on site, including workers, is about 9,700. Ethylene is known as the ‘rice of the petrochemical industry’ and is used as a basic raw material for various petrochemical products. It is manufactured by thermally decomposing naphtha and liquefied petroleum gas obtained by refining crude oil.

Hyundai Engineering and TR Consortium were selected as the final contractors for ‘Dual FEED’, where both consortia proposed their own basic design approach (FEED) during a competitive bidding process in 2020. Only one of the two consortia could won the order, but they were recognized by the ordering party for their basic design and project execution capabilities, as well as their capabilities in the largest petrochemical plant project in the history of Poland, and managed to win the order in 2021. The type of participation is 55% for Hyundai Engineering and 45% for TR.

On the 22nd of last month, the 110m-high, 1,200-ton
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