Hyundai Engineering and Construction Co. signed an MOU with General Electric of the United States to cooperate on a wide range of areas, from energy and infrastructure to construction, including medical hospitals, the company said on Feb. 25.
The two companies will cooperate in wide-ranging regions in the world, including the Middle East, Asia, Europe, and the North America with the Korean builder using turbines, compressors and control belts to be provided by GE for its projects. Hyundai E&C will use medical equipment to be provided by GE for hospitals it builds in Asia, Europe and the Middle East going back to the MOU signed in 2013 with GE Healthcare, the company said. Under that MOU, the GE affiliate will provide medical equipment and hospital solutions to the hospitals built by Hyundai E&C around the world, the builder said.
Hyundai E&C also said the agreement would not stop at just taking care of undertaking the projects, but the two companies would also find the joint projects that they can invest jointly in such areas as power plants and water treatment facilities in new regions like Asia, Africa and Latin America.
Hyundai E&C officials said the MOU signed this time was possible due to the trust generated from the previous MOU signed between Hyundai Motor and GE, which initially brought the two companies together, and expects to further expand the ties between the two business groups in the future.
The construction company announced on Jan. 23 that its consolidated sales came to 17.3870 trillion won with new orders of 27.1673 trillion won and operating profit of 958.9 billion won in the three months ended Dec. 31, 2014. These figures were up by 24.7 percent, 25.7 percent and 20.9 percent year on year, respectively, showing a rapid growth trend with an over 20 percent increase. The outfit attributed this to a significant sales rise in mega-size overseas construction projects, including Kuwait’s Jaber-Causeway project and UAE’s SARB offshore oil field development, large-scale orders in Central and South America and the CIS region resulting from the strategy of overseas market diversification, a jump in the number of high-quality overseas projects, and its continuous efforts to cut down on costs. Notably, the improvement in sales performance is in stark contrast to earning shocks by other domestic competitors, who are suffering from uncertainty on overseas projects and a downturn in the domestic construction market.
Hyundai E&C saw its net profit during the term slightly increase by 3 percent to 586.7 billion won, owing to a fine and compensation imposed by the Korea Fair Trade Commission. Order backlog increased by 24.5 percent to 66.7697 trillion won.
In 1993, Hyundai E&C was awarded an ISO 9001 international quality management certificate by Lloyd’s Register Quality Assurance. It was the first Korean construction company to be so honored and has retained it ever since. Other certifications that we have been awarded include an NA (nuclear assembly), NPT (nuclear partials), and NS (nuclear supports) from the American Society of Mechanical Engineers (ASME) and the Korean-based KEPIC MN/SN/EN/MH.
“We have developed highest-quality management and quality guarantee systems for all our domestic and international processes including engineering, procurement, construction, operations, inspections, and maintenance,” the company said. “By doing so, we have demonstrated to our clients that ‘Hyundai E&C quality = trust,’ while also pioneering the development of quality assurance systems throughout the Korean construction industry.”
“We strive to meet our zero-defects quality goal by carrying out preventative quality activities and deploying our global-standard quality evaluation system, the Hyundai Quality Rating System (HQRS), in all our projects,” they added. “This is done because we believe that customer satisfaction, which has always been our top priority, can only be achieved through continuous, process-centered operational improvements.”
“We also practice customer-centric trust management through a company-wide, ‘gold-standard’ quality management system, which includes promising customers 24/7 after-sales service and lifetime customer management.”
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