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[98th Anniversary Special] Ssangyong E&C Chairman and CEO S. Joon Kim

 

"Ssangyong E&C to focus its energy on securing construction projects for the 2020 Expo Dubai, and in Korea expand its presence in the housing sector including reconstruction projects"

 

 

"This year, we will secure contracts worth KRW 1.5 trillion both in Korea and overseas to ultimately deliver KRW 3 trillion in total contract value and KRW 1.3 trillion in sales" said Ssangyong E&C Chairman and CEO S. Joon Kim (photo), announcing the company" goal for the year 2018.

 

In overseas markets, the company will focus its sales and marketing effort on winning construction projects to be undertaken for the 2020 Expo Dubai and construction projects initiated by the Investment Corporation of Dubai (ICD), the largest shareholder of Ssangyong E&C and world-class sovereign wealth fund with assets totaling KRW 254 trillion. Putting this strategy into action, the company is currently focusing its energy on Dubai Silicon Oasis as a strategically important location. Last year, Ssangyong E&C secured contracts for residential building projects in this location, successfully establishing itself as a leading contender in the race for additional projects on the docket for this up-and-coming neighborhood being promoted by the ICD as the 'Silicon Valley of Dubai."

 

Since the ICD assumed the position of its largest shareholder in early 2015, Ssangyong E&C has made a strong comeback with a renewed vision. The company has since secured five contracts worth USD 1.5 billion in Dubai alone. Chairman Kim said, "The ICD does not award projects simply because it holds stake in the company" attributing its strong performance to "Ssangyong E&C's great track record in construction projects and advanced technology."

 

For example, Ssangyong E&C was able to win Singapore's Thomson-East Coast Line T308 Project at USD 2,500 million, although the company did not submit the lowest bid. It was an accomplishment made possible by the company's technological capability proven through highly challenging civil engineering projects such as the Singapore Downtown Line T921 and the Marian Coastal Expressway. In addition to Dubai, Ssangyong E&C plans to aggressively pursue projects in South East Asian countries such as Singapore, Indonesia and Malaysia, targeting hotel, hospital and office building projects and high value-added civil engineering projects&mdashthe segments in which the company exhibits undisputed strengths.

 

In Korea, the company plans to aggressively go after new large-scale projects. Since its successful turnaround in 2015, Ssangyong E&C is engaged in a total of ten urban improvement projects (redevelopment, reconstruction and remodeling) comprising 7,500 units in key locations such as Seoul, Bundang, Incheon and Pyeongchon, which translate to approximately KRW 1.1 trillion in total contract value. "This year, 1,700 units will be released to the market, the initial offering from our reconstruction and remodeling projects and six local housing projects that will provide a total of 4,600 units. This is consistent with our plan of progressively expanding the company's share in Korea's residential building construction sector," says Mr. Kim. "We will make a concentrated effort in securing remodeling projects in New Towns and the Seoul metropolitan area, leveraging our position as the top builder in the segment." he added.

 

 

2018 Ssangyong E&C Business Strategy   Housing Business: Taking a ive approach, focus on securing projects in Seoul and large cities nationwide. Effectively respond to the shifting demand from reconstruction to remodeling.   Overseas Business: Focus on securing high-end building construction projects and civil engineering projects that yield high added-value with the Dubai and Singapore offices serving as the hubs of this strategy.
KRW 1.3 trillion	KRW 3 trillion
Target for Sales	Target for Contract Value

 

 

Ssangyong E&C's is also making headways in enhancing its corporate credit rating. The company currently maintains an A- in the Corporate Credit Rating for Public Procurement Project Bidding, AA in the Korea Housing & Urban Guarantee Corporation (HUG) rating and BBB (Outlook: Stable) in the NICE Investors Service corporate credit rating. Chairman Kim says, "The favorable market response is the comprehensive reflection of our strong performance in securing quality projects propped up by the steady stream of ICD orders, the positive outlook for sales performance and the enhanced financial structure."

 

Ssangyong E&C also remains vigilant in its investment for the future&mdashits people. The company believes that its long-term business competitiveness hinges on its people and is making active investment in HR development, particularly in grooming global business leaders. Ssangyong E&C provides on- and offline language training for all of its employees and offers courses on English, Arabic, Spanish, Vietnamese and Malay-Indonesian. All of Ssangyong E&C employees scheduled for overseas assignments undergo an intensive eight-week training on conversational English, onsite processes, contract management, and contracts and negotiations. "In order to compete with world-class construction companies on the global stage, we need talented professionals who are fully versed in global business and armed with language skills as well as technological expertise, and that is why we are continuously improving our training programs" said Chairman Kim.