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S Korean firms bag record industrial plant orders in 2010

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Press Trust of India Seoul
Last Updated : Jan 20 2013 | 7:32 PM IST

South Korean companies won record-high industrial plant orders from overseas including India in 2010 on a surge in demand from oil-rich countries and a steady increase in infrastructure building by emerging economies, a government report showed today.

The combined value of plant orders received by local firms reached $64.5 billion last year, up 39.3 per cent from a year earlier, according to the report released by the Ministry of Knowledge Economy.

Of the 55 countries that placed orders last year, the United Arab Emirates topped the list with $24.3 billion with Saudi Arabia, Australia, Kuwait and India making the top five list.

Libya, Vietnam, France, Myanmar and the Netherlands all placed orders exceeding $1.1 billion.

"Last year's surge was fueled by more investment in energy-related plants by oil producing countries and efforts to build up national industrial capabilities by many emerging economies," the ministry said.

Orders from energy resource-rich countries in the Middle East accounted for 59 per cent of the total or $38.1 billion.

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The numbers represent a 22.5 per cent gain from the year before, it said.

Oceania and Asia accounted for 18.9 percent of all orders won for a gain of 76.8 per cent on-year, with orders from Europe increasing  9.7 per cent to $6.2 billion.

The Middle East still made up the bulk of overseas industrial plant orders secured by local companies, but the reliance dipped from 67.2 per cent of the total tallied for 2009, the ministry said.

"The decrease is a sign that diversification has been achieved as local companies have started to broaden their horizons and bolstered marketing efforts in other regions," it said, Fresh orders to build more marine plants such as floating production storage and offloading (FPSO) ships for European countries contributed to reduced reliance on the Middle East.

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First Published: Jan 04 2011 | 3:16 PM IST

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