Hanwha Wins Additional $2.12 Billion Construction Project in Iraq, Totaling over
$10 Billion in the Bismayah New City Alone
- Devoted efforts of Chairman Seung Youn Kim and local staff led to the additional order
- Hanwha group secures a favorable position to win future biddings for 2nd and 3rd Bismayah New Cities
- This additional project creates 30,000 additional man-days and new business for over 10 Korean partner companies
[6 April, 2015] Hanwha Group signed an order for an additional $2.12 billion in social infrastructure construction for the Bismayah New City project, just four months after the visit of Chairman Seung Youn Kim to Iraq in late 2014.
Bismayah New City Project is a contract Hanwha Group won from the government of Iraq in 2012 to construct 100,000 residential units in an area of approximately 1,830 hectare, totaling $8 billion (including escalator clause).
On April 5th, Hanwha Group signed an agreement for the additional social infrastructure construction for the Bismayah New City at the Iraq National Investment Commission (NIC) Annex in Baghdad. The ceremony was attended by representatives of Hanwha Group including President and CEO of Hanwha E&C, Lee Keun-po, Vice Chairman of Hanwha Group, Kim Hyun-chung, Vice President of Hanwha E&C, Kwang Ho Choi, Executive Vice President of Hanwha E&C, Ko Kang, and Manager of Hanwha E&C, Kim Dong Seon, and dignitaries from the government of Iraq including Chairman of the Iraq NIC Dr.Sami Al-A'raji, Prime Minister Deputy, Baha' Al-A'raji, and Chairman of Investment and Economic Committee in Parliament, Jawad Al-Bolanni.
With this additional order, Hanwha E&C cements its leadership position in the restoration project of postwar Iraq with total value of orders exceeding $10 billion in the Bismayah New City alone.
The new project will supplement the construction for 100,000 residential units currently underway for the Bismayah New City project by constructing a variety of key social infrastructure for the new city including over 300 schools and hospitals, police stations, fire stations, roads and water and sewage systems.
Hanwha E&C's latest order aims to provide Bismayah New City, the future home to over 600,000 residents, with further self-sufficiency. When completed in 2019, the project is expected to become a testament to Iraq's recovery and development as the first fully modern city constructed in the post-war period.
Chairman Seung Youn Kim spared no effort in securing Hanwha E&C's latest order. He visited Iraq three times despite the crisis to encourage the employees of Hanwha E&C. Also, he met with Iraqi government officials to reassure them of Hanwha E&C's total commitment to completing the Bismayah New City project no matter how difficult and dangerous conditions may become.
In a meeting with Chairman of the Iraqi NIC Dr.Sami Al-A'raji last December, Chairman Kim stated that "every employee is totally dedicated to the project knowing that they are building the future hope for the people of Iraq," adding that "every difficulty will be faced and surmounted in order to make Bismayah New City a world-class human-friendly city."
Chairman Al-A'raji expressed his strong trust in Hanwha's commitment in his reply to Chairman Kim, stating that he was "deeply grateful for the dedication of the employees of Hanwha E&C who did not withdraw but instead stood their ground despite the crisis in Iraq and carried out their duties with professionalism and dedication."
While other companies and their staff withdrew from the construction site due to the crisis in Iraq, the employees of Hanwha E&C and its partner companies remained on site to ensure that the construction proceeded seamlessly, earning considerable admiration from the people of Iraq.
The new order will allow Hanwha E&C to secure an advantageous position for future projects for a second and third New Cities. As the Iraqi government plans to construct one million residential units as part of its post-war recovery efforts, additional business opportunities in the future are expected.
Chairman Seung Youn Kim's full support and the dedication of Hanwha E&C to make the project a success have already been admired by the people of Iraq, and the favorable market sentiment towards Korean companies, especially following the recent visit of President Park Geun-hye of South Korea to the Middle East, is creating positive conditions for additional orders.
For Hanwha, Iraq represents a land of opportunity as well as a forward base for a new construction boom in the Middle East. Hanwha's presence in the country is also providing new jobs and business opportunities for Hanwha's partner companies. The Bismayah New City project has created jobs totaling 550,000 man-days for over 100 Korean partner companies who are working full-tilt alongside Hanwha E&C's employees on the site. The new order is expected to create jobs for an additional 30,000 man-days and allow 10 new partner companies to expand into Iraq.
Hanwha Group is actively expanding into Saudi Arabia and other countries in Middle East, in addition to Iraq. On April 2nd, the International Polymers Company, a joint venture between Hanwha Chemical and Sipchem, a private Saudi petrochemical firm, began full scale production for 150,000 tons of ethylene vinyl acetate (EVA). The partnership is expected to provide stable raw material supplies and revenue structure improvements.
Bismayah New City Project Overview
The Bismayah New City Project is a development project for building 100,000 residential units in an area of approximately 1,830 hectare which Hanwha Group won from the government of Iraq in 2012, totaling $8 billion (including escalator clause).
In "A" Town, the first of a total of eight town districts to be built in the new city, ten-story apartments are already appearing. In June 2015, 1,440 units for Block A1 will be completed. Site renovations, foundation construction and apartment construction are underway by stages in the other blocks. At the project's peak, apartments totaling 20,000 units will be supplied each year. Bismayah New City at its completion will become a massive new city with eight towns, 59 blocks and 834 buildings.
Additional Construction Order Overview
|Name||Social infrastructure construction, Bismayah New City, Iraq|
|Location||Bismayah New City and its environs|
|Amount||$ 2.12 billion|
|Details|| 20 projects
· Schools (kindergarten/elementary school/middle and high school), hospitals, fire stations,
police stations, post offices, daycare centers
· Gas stations, youth centers, sports and athletics facilities, bus terminal, clinics
For more information:
Hanwha Engineering & Construction
Hanwha E&C has been rapidly growing into a global player at an annual average growth rate of 20 percent since 2002 by leveraging its extensive experiences from many of its past construction projects and by applying its new and most effective technologies. Our competitiveness is internationally recognized; we ranked 72nd on the list of the top global contractors (with construction revenues of more than USD 521 billion) in Engineering News Record in 2014, the international publication called the “bible of the construction industry.”
For more information, visit: www.hwenc.com
Hanwha Group, founded in 1952, is one of the Top-Ten business enterprises in South Korea and a “FORTUNE Global 500” company. Hanwha Group has 56 domestic affiliates and 249 global networks in three major sectors: manufacturing and construction, finance, and services and leisure. With more than 60 years track record of industrial leadership, Hanwha’s manufacturing and construction businesses encompass a broad range of fields from chemicals & materials, aerospace & mechatronics, total solar energy solutions, and global construction. The finance network, covering insurance, asset management and securities, is the second largest non-bank financial group in South Korea. The services and leisure sector offers premium lifestyle services with retail and resort businesses.
For more information, visit: www.hanwha.com
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