Hyundai Engineering Wins $757 Million 'Indonesia LINE Project' Contract

Construction of Naphtha Cracking Plant at Indonesia Lotte Chemical Petrochemical Complex
Establishing a Strong Position in Indonesia Petrochemical Plant Market through Consecutive Orders

At the contract signing ceremony for the 'Indonesia LINE Project' held on the 7th at Lotte Tower in Seoul, Kim Gyo-hyun, Vice Chairman of Lotte Chemical (center in the photo), Hong Hyun-sung, Head of Plant Business Division at Hyundai Engineering (first on the right in the photo), and Gandhi Sulistiyanto, Indonesian Ambassador to Korea (second on the right in the photo), along with other officials, signed the main contract and took a commemorative photo.

Hyundai Engineering announced on the 9th that it has secured and signed the main contract for the 'Indonesia LINE Project' worth 757 million USD (approximately 912 billion KRW).

The main contract signing ceremony, held via video conference on the 7th at Jamsil Lotte Tower, was attended by key figures including Kim Kyo-hyun, Vice Chairman of Lotte Chemical, Hong Hyun-sung, Head of Hyundai Engineering's Plant Business Division, and Bahlil Lahadalia, Indonesia's Minister of Investment.

The Indonesia LINE Project involves constructing a mega chemical complex worth 3.9 billion USD (approximately 4.69 trillion KRW) in the Cilegon area, located about 90 km northwest of Jakarta, the capital of Indonesia, capable of producing 1 million tons of ethylene and 520,000 tons of propylene annually.

The naphtha cracking plant (NCC) awarded to Hyundai Engineering in this project is a core facility of the mega LINE petrochemical complex that cracks naphtha to produce ethylene and propylene, often called the "rice of the petrochemical industry."

Following the 2.7 trillion KRW 'Poland PKN Olefin Expansion Project' secured last year, Hyundai Engineering has consecutively won overseas mega NCC projects including the 'Indonesia TPPI Olefin Petrochemical Complex Front-End Engineering Design (FEED)' and this project, demonstrating its global top-tier technological capabilities.

Previously, Hyundai Engineering secured the 'Indonesia Balikpapan Refinery Project' worth a total of 4.8 trillion KRW in 2019 and subsequently won the first and second additional construction phases for the same project.

In addition, in May last year, Hyundai Engineering was selected as the successful bidder for the EPC-linked FEED of the 'TPPI Olefin Complex Project,' the largest petrochemical complex in Indonesia worth 4.5 trillion KRW, further establishing its prominence in the Indonesian petrochemical plant market.

A Hyundai Engineering official stated, “Following the Poland Olefin Plant, securing the NCC for the Indonesia LINE Project once again proves Hyundai Engineering’s capabilities in petrochemical plant construction,” adding, “As this project is carried out together with domestic clients, we will focus all our company-wide capabilities on close communication and cooperation to ensure the LINE Project becomes a representative petrochemical complex in Indonesia.”