Daewoo E&C gains big in Algeria

By Lee Hyo-sik

Daewoo Engineering & Construction (E&C), one of Korea’s largest builders, has emerged as a major player in Algeria’s construction market over the past few years, thanks to its advanced technological know-how on a wide range of infrastructure-related projects. The firm has secured a total of seven contracts worth $2.27 billion since 2008.

Following its successes in Algeria and other Northern African countries, the firm is seeking a strong foothold in Southern Africa, South America and other emerging markets to find new sources of income and become a truly global construction firm.

In Algeria, Daewoo E&C won a $124 million order in August to build a new city hall in Boughzoul, 250 kilometers south of capital Algiers. The project will include a 19-story building and three low-lying structures on 43,680 square meters of land. The builder plans to complete construction by the end of 2014.

In cooperation with other Korean builders, Daewoo has been constructing a massive housing, commercial and research complex in Boughzoul since 2008. When the project, one of Algeria’s 14 new town construction schemes, is completed, the complex will house up to 350,000 people.

``We have built a great deal of mutual trust with Algerian government officials over the years. On top of this extensive human network, our advanced technological know-how and sound workmanship have made it possible for us to secure the city hall project,’’ a Daewoo E&C spokesman said.

He said Daewoo competed hard with construction companies from China, India, Egypt and other developing nations. ``Even though our competitors submitted a lower bid price, the Algerian government chose us for the strong mutual trust built up over the years. This will help us win many more contracts.’’

Since the builder advanced into the North African nation in 2008, it has won seven construction deals totaling $2.27 billion. They include a $500 million project to restore a stream running through Algiers and a $290 million contract to build an LNG plant.

Using its success in Algeria as a springboard, Daewoo plans to tap into other African countries.

``Following our record-high overseas construction orders last year, we have won projects worth a total of $1.43 billion so far this year. We have established a strong presence in Asia, the Middle East and northern Africa. Now is time for us to move into new markets,’’ the spokesman said.

``Our market diversification efforts will soon bear fruit. We expect our overseas construction orders for this year will reach over $6.4 billion,’’ he said.

leehs@koreatimes.co.kr