[Asia Economy Reporter Hyungsoo Park] SY's stock price is rising amid news that the government plans to participate in post-war reconstruction projects in Ukraine. The government plans to form a consultative body composed of public enterprises and companies to begin reconstruction projects.
As of 10:01 a.m. on the 8th, SY is trading at 4,025 won, up 1.64% from the previous day.
The Ministry of Land, Infrastructure and Transport announced on the 6th that Minister Won Hee-ryong met with Dmytro Ponomarenko, the Ukrainian ambassador to Korea, and two Ukrainian lawmakers to discuss cooperation plans for reconstruction projects in cities like Mariupol, which lost urban functions due to the Russia-Ukraine war.
Earlier, on the 4th, the government expressed its willingness to participate in Ukraine's reconstruction projects at the 'Ukraine Reconstruction Conference' held in Lugano, Switzerland.
A Ministry of Land official said, "Through the meeting between Minister Won and the Ukrainian lawmakers, it is expected that domestic companies' participation will expand in the post-war Ukraine reconstruction projects worth $750 billion (approximately 980.55 trillion won). This will further strengthen cooperation between Korea and Ukraine."
Serhiy Taruta, a Ukrainian lawmaker who met with Minister Won, said, "Due to the Russian invasion, 12,000 housing units in Mariupol were completely destroyed, and 95% of the infrastructure was damaged. Therefore, building a new city after the war is urgent." He proposed that the Korean government and companies, leveraging their experience in post-war recovery and new town development, take charge of Mariupol's reconstruction as a new standard.
Irina Vereshchuk, Ukraine's Deputy Prime Minister and Minister for Reintegration of Temporarily Occupied Territories, recently said, "We need to build villages with modular (prefabricated) houses," and added, "We hope Korea, which possesses related technology, will assist us."
Modular construction can be broadly divided into the unit method and the Penalizing method. The unit method involves transporting unit boxes, which are about 80% manufactured including the frame at the factory, to the site and assembling (20%) them to complete the building. The Penalizing method transports Structural Insulated Panels (SIP) to the site and completes construction by assembling the panels on-site.
Both methods share advantages of modular construction such as shortened construction periods, cost reduction, and eco-friendliness. Since the unit box method includes the frame, it can build high-rise buildings compared to the Penalizing method, but it is relatively more expensive and takes longer.
Its affiliate, SY Build, has established a manufacturing line for producing structural insulated panels using the Penalizing method. Urethane is foamed between structural composite wood to enhance insulation performance and reduce energy use. It has the advantage of being ultra-lightweight.
The modular house, Polychem House, which has been developed and completed, was donated through Eugene Bell for tuberculosis patient treatment wards in North Korea, installing three buildings. Polychem House was selected as the preferred supplier for the Nepal health center construction project. It was also developed, manufactured, and constructed by SY for use as volunteer accommodations and auxiliary facilities during the 2018 Pyeongchang Olympics. To expand the market for the modular house Polychem House, a sales network using dealerships distributing building materials has been established.
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