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Chairman and CEO’s Onsite Leadership Reduces Overseas Construction Receivables

2021-04-12

CEO's Visit Reduces Receivables for Royal Atlantis Resort and Residences

Full-Fledged Effort to Secure Contract for 6 MRT Sections in Singapore (USD 2.7 Billion) 

 

Chairman and CEO S. Joon Kim's onsite leadership is paying off handsomely: His visits to overseas project sites have significantly reduced receivables associated with those projects. The achievement is even more significant considering that it took place amid the spread of the COVID-19 pandemic.

 

According to the Financial Supervisory Service's Data Analysis,Retrieval and Transfer System (DART), Ssangyong E'C's total receivables for major ongoing projects were KRW 155.6 billion (USD 138 million) as of late 2020, a KRW 8.1 billion (USD 7.2 million) year-on-year decrease from the 2019 total of KRW 163.7 billion (USD 145 million).

 

Dubai's Royal Atlantis Resort and Residences project was mainly responsible for this reduction in receivables. This project was commissioned in 2015 by the Investment Corporation of Dubai (ICD), the largest shareholder of Ssangyong E'C.

 

Even though this project was 64.4% completed by late 2019, it still had construction receivables of some USD 40 million at the time. Construction receivables are uncollected amounts due for payment that have been forwarded to the client according to the progress of a construction project.

 

However, Chairman and CEO S. Joon Kim's business trips to Dubai in September and December 2020, which took place in spite of the raging COVID-19 pandemic, turned the situation around. During these trips, he visited six ongoing project sites, including the site of the Royal Atlantis Resort and Residences, examined site conditions, and tackled key pending issues through in-person meetings with the client.

As a result, construction is 90 percent complete as of late last year, with full completion expected in December this year. At the same time, the project's receivables, which had reached some USD 39 million the year before, were fully resolved. Currently, the project has no receivables.

 

Royal Atlantis Resort and Residences is not the only project site that witnessed a reduction in construction receivables. Receivables of some USD 1.2 million for the Forest Woods Condominium, currently under construction in Singapore, were settled in their entirety. For the same period, the construction receivables for the Woodlands Health Campus (WHC) in Singapore were also reduced from some USD 6.7 million to 4.3 million. 


Furthermore, banking on its unparalleled track record in overseas construction, Ssangyong E'C is striving to secure a contract for six construction sections of Singapore's Cross Island MRT Line (CRL). For this tender, the company has formed a consortium with Hyundai E'C. 


"In the overseas market, we are currently participating in tender processes for 33 projects worth 14.8 billion dollars, and we have already passed preliminary qualification stages in all of these projects, a company official said. "In Singapore, in particular, we are making every effort to secure a contract to build six construction sections of the new MRT subway line."