[Asia Economy Reporter Noh Kyung-jo] Dongbu Construction announced on the 30th that it has secured about seven years' worth of work by building a stable order backlog worth 8 trillion won.
According to the business report for the third quarter of this year, Dongbu Construction is estimated to have an order backlog of about 7.9 trillion won on a consolidated basis. Amid worsening construction conditions such as rising raw material prices and labor costs, real estate project financing (PF) contingent liabilities, and the Cargo Solidarity strike, Dongbu Construction said it is finding a breakthrough through diversification strategies.
Dongbu Construction has achieved significant orders in the public sector this year, including the Pyeongtaek~Osong double-track section 4 construction project, the Saemangeum New Port berthing facility (phase 1) construction project, and the Hanam Dream transfer-type complex rest facility development project. Recently, it won the bid for the country's first national fire hospital construction project and also secured a 29.4 billion won facility construction project for the 22-Yuk-00 unit ordered by the Military Finance Management Group on the 28th. As a result, Dongbu Construction achieved a public construction order backlog of 2.93 trillion won, ranking fourth in public construction orders in the first half of this year.
Performance in the private sector is also solid. Dongbu Construction secured orders for the Busan Goejeong 1 street housing maintenance project, Geoje Sangdong 2 district apartment new construction project, and Jeonju Seosin-dong 1 and 2 districts street housing maintenance projects this year. On the 19th, it was selected as the contractor for the Samshin 8th Apartment street housing maintenance project in Uiwang, Gyeonggi Province.
In the plant sector, considered a new business, Dongbu Construction won orders for the hy (formerly Korea Yakult) Nonsan factory new construction project and the Hana Materials Asan plant phase 2 new construction project, totaling about 165 billion won.
A Dongbu Construction official said, "Despite the difficult business conditions, we are steadily securing orders in various fields," adding, "Although domestic construction orders are expected to decrease next year due to government cuts in social overhead capital (SOC) budgets, we will do our best to overcome the recession with differentiated and diversified order strategies."
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