On the 20th (local time), Huh Yoonhong, President of GS Construction, took a commemorative photo after signing the documents finalizing the acquisition together with Jacek Swiczki, President of Danwood, at the acquisition celebration event held at Danwood headquarters in Poland. (Provided by GS Construction)
[Asia Economy Reporter Donghyun Choi] GS Engineering & Construction is targeting the global housing construction market by simultaneously acquiring three modular companies in Europe and the United States. This is the first time a domestic construction company has acquired advanced overseas modular companies.
On the 21st, GS Engineering & Construction announced that it signed an acquisition agreement at the headquarters of Danwood S.A, a wood modular housing specialist located in Białystok, Poland, with key figures including Heo Yunhong, President of the New Business Division, Jacek ?wiczki, Chairman of Enterprise Investor (EI), and Jarosław Jurak, President of Danwood. The acquisition amount is approximately 180 billion KRW. Prior to this, President Heo completed the acquisition of Elements Europe Ltd, a steel modular specialist company based in the UK, on the 16th, and has also finalized major terms with S Company, a US steel modular specialist, with plans to sign the main contract in February.
Through the acquisition of these three modular specialist companies in Europe and the US, GS Engineering & Construction plans to preempt the overseas modular market and actively target the US and European modular markets by leveraging the strengths, technologies, and networks of each specialized company. The modular market has been primarily formed in advanced countries where securing construction labor is difficult and wages are high, but recently, the modular market is growing domestically due to aging construction labor and labor shortages as well as strengthened environmental requirements. In particular, difficulties in transportation and differing national regulations have made it challenging to grow into a global company, but GS Engineering & Construction aims to preempt the overseas modular market through the acquisition of two European companies and one US company and actively target the US and European markets through synergies among the acquired companies. Through this, the company aims to become a global leader in modular construction and introduce advanced technologies from the US and Europe to the Asian and Oceania markets, including Korea, entering both high-rise modular markets and low-rise residential markets.
Danwood in Poland specializes in wooden detached houses and ranks 4th in modular housing sales in Germany. Its strengths lie in cost competitiveness secured through approximately 150 designs with Danish sensibility and automation of manufacturing processes. Its main markets are Germany, the UK, Austria, Switzerland, and Poland, with plans to expand supply throughout Europe, including the Scandinavian Peninsula such as Sweden and Norway.
Elements in the UK has a track record of numerous high-rise modular projects within the UK. Using a construction method that precedes the core (Core) and modular units, it is currently constructing a 21-story luxury residence in Croydon, UK, scheduled for completion this year. Core precedence is a method where the reinforced concrete core (stairwells, elevator halls, etc.) of a high-rise building is constructed first, followed by the external steel structure. Elements also produces modular bathrooms, which are mainly formed in advanced modular markets, ranking 3rd among UK modular bathroom specialist companies in terms of sales.
The US-based S Company is a high-rise steel modular specialist company that secures cost competitiveness through design, cost, and construction management using Building Information Modeling (BIM) and global sourcing. Based on these strengths, its main market is the US East Coast centered around New York. It is currently constructing the world's tallest modular hotel, scheduled for completion in 2021.
President Heo Yunhong said, "Through this acquisition, we have established a foundation for GS Engineering & Construction to take a step forward through change and innovation amid rapidly changing management environments," adding, "We will solidify our position in the global modular market through synergies among the acquired companies."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
