Hyundai Engineering Co., Ltd. (CEO: Kim Ui-Chul) and Hyundai Corporation (CEO: Jung Mong-Hyuk and Kim Jung-Rae) announced that they had won the contract for a 900-million-dollar lube base oil projection facility construction project in Shymkent, Kazakhstan on August 1st.

The CEO of Hyundai Engineering, Kim Ui-Chul, The CEO of HILL Corporation, Mr. Dulat P. Kozhamzharov and an Executive Director of Hyundai Corporation, Lee Gun-Hwa participated in the signing ceremony for this contract held in the headquarter of Hyundai Engineering in Mok-dong, Seoul.

Ordered by HILL Corporation, which is the No.1 company in the Kazakhstan lube base oil market share, this project is to construct lube base oil production facilities that can produce 0.2 million tons of 1, 2, 3-grade lube base oil annually in Shymkent, located 870km south of the capital of Kazakhstan, Astana. Hyundai Engineering will take care of all the processes for the project from basic and detailed design works to purchase and construction.

Beginning with the lube base oil project in Taiwan in 2005, Hyundai Engineering won a contract for the first Arab Emirates lube base oil plant on a turn-key basis. Winning this contract was based on the orderer’s trust in Hyundai Engineering’s diverse experiences and technical capabilities accumulated in the lube based oil field including Hyundai Engineering’s FEED(Front End Engineering Design) and LLI(Long Lead Item) services provided for the lube base oil production facilities of Hyundai Oilbank this year.

Hyundai Corporation played an important role in winning this contract by investigating the contracting party’s requirements through the local network from the beginning of the project in cooperation with Hyundai Engineering.

Since the 1.5-billion-dollar gas desulfurization system project in Turkmenistan in 2009, Hyundai Engineering has worked on various business transactions in CIS region. Hyundai Engineering won UGCC and Kandym Field Project in Uzbekistan last year and an oil refinery construction project in Turkmenbashy, Turkmenistan again this year.

Hyundai Engineering is also working on an electric power transmission and transformation system improving and repairing project in Kazakhstan. Therefore, it is expected that this Shymkent project will be an opportunity to strengthen its position in CIS region.