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BY: http://english.peopledaily.com.cn/90001/90778/90860/7271309.html

China National Electric Engineering Co Ltd (CNEEC) says it secured most of its 2010 revenue from overseas power station projects, representing the Chinese contractor's capacity in the international Engineering, Procurement and Construction (EPC) market.

The contractor had more than 3 billion yuan ($456 million) in revenue in 2010, up 7.46 percent year-on-year, and its profit soared by almost 50 percent to more than 130 million yuan. It secured new contracts worth nearly $3 billion last year, representing an increase of 12.89 percent.

About 80 percent to 90 percent of its projects came from foreign markets, according to the contractor.

"A diversified business portfolio is helping us expand into the global market," said President of the company.

CNEEC engages mainly in the construction of thermal and hydraulic power plants, and power transmission and distribution projects, in addition to environmental and energy conservation.

Chinese contractors such as CNEEC are now competing with well-known global conglomerates such as General Electric, Siemens and Mitsubishi in the international EPC market.

The strengths of Chinese contractors in the market are efficiency, diligence and the attitude of tailoring their work to customers' requirements, CNEEC President said.

CNEEC won a contract to build a multimillion dollar power plant in Australia that uses new technologies enabling it to run on low-grade coal, which is often left unused. The contract signals CNEEC's entry into the EPC market of developed economies, access to which is usually difficult to gain.

The contract comes on top of CNEEC's securing an order worth billions of dollars in December 2009 to build a power station in Laos, the largest power plant contract in China in terms of value.

The company was also involved in a $2 billion framework agreement to develop iron ore mines and power plants in Kimkan and Sutara in the Russian Far East. It also helped in financing the project.

Energy demands in developing economies are increasing rapidly due to economic development, CNEEC President said, resulting in fierce competition in energy-related projects in those countries.

According to a report last year by the Ministry of Industry and Trade of Vietnam, Chinese companies have won up to 90 percent of EPC projects in the country.

EPC projects will also greatly add to China's exports, the contractor said.

However, overseas market exploitation also can add to financial volatility due to the currency fluctuation.