Hyundai Heavy Industries has clinched a US$3.2 billion order to build a thermal power plant in Saudi Arabia.

Korea's leading shipbuilder signed a deal with the state-owned Saudi Electricity Corporation on Monday to build a 2,600-megawatt power plant in the coastal city of Jeddah. When finished, it will be able to produce 5 percent of the nation's electricity supply.

The deal represents a much-needed shot in the arm for Hyundai Heavy as it has been suffering from a slump in shipbuilding orders from Europe.