Korea Technology Subsidiary Secures Additional 49.3 Billion KRW Gimpo Logistics Center Order... "Order Backlog 1.48 Trillion KRW"

[Asia Economy Reporter Jang Hyowon] Korea Technology, a KOSDAQ-listed company (CEO Shin Yonggu, Lee Byunggil), announced on the 14th that its subsidiary Daewoo Shipbuilding & Marine Engineering Construction (Chairman Kim Yongbin) has won a contract worth 49.3 billion KRW to build a logistics center in the Gimpo Daepo Industrial Complex (A7-2), bringing its order backlog to 1.48 trillion KRW.

The contracted project is the construction of a logistics center worth 49.3 billion KRW located at 261-2, Daepo-ri, Yangchon-eup, Gimpo-si, Gyeonggi-do. This follows last year's order for the Gimpo Smart Logistics Center, adding to the company's logistics center orders.

The logistics center to be built in Gimpo Daepo Industrial Complex A7-2 will be used as a warehouse facility (cold storage) and will be constructed from one basement floor to eight above-ground floors. The construction period is approximately 20 months from the start date. The project shares are 90% for Daewoo Shipbuilding & Marine Engineering Construction and 10% for Changwon Gijeon.

Cold storage logistics centers have seen increased demand due to the rapid growth of fresh food delivery caused by COVID-19, while domestic A-grade facilities account for only about 3%, attracting growing interest from companies and investors.

The Daepo Industrial Complex A7-2 logistics center to be constructed this time offers very convenient access to Seoul via National Road 48 and Olympic-daero. Additionally, daily delivery is easy not only to nearby Gimpo, Ilsan, and Goyang areas but also to all regions of Gyeonggi-do through the Seoul Metropolitan Area Second Ring Expressway.

A company official stated, “The cold delivery market has rapidly grown due to COVID-19, and parcel delivery volume, which is closely related to the demand for logistics centers, has increased by about 10% annually, so we expect continued strong demand for logistics centers.” He added, “This logistics center offers some of the lowest rental rates among cold storage warehouses in the metropolitan area and is designed according to the latest trends.”

He continued, “We will do our best to build the best logistics center in Korea,” adding, “Following last year’s order for a 95 billion KRW smart logistics center equipped with an AI-based automation management system, we have now secured an additional 49.3 billion KRW logistics center order, bringing the cumulative order backlog to approximately 1.48 trillion KRW.”

Daewoo Shipbuilding & Marine Engineering Construction, which surpassed an order backlog of 1.23 trillion KRW at the end of last year, recorded about 300 billion KRW in new orders in the first quarter of this year, achieving a cumulative order backlog of 1.48 trillion KRW as of the end of the first quarter. This figure is close to the business plan target of 1.5 trillion KRW in order backlog.