Laying the Groundwork for Orders in Renewable Energy, SMRs, and Modular Construction
New Overseas Sales Department Established to Enhance Order Competitiveness
Hydrogen Power Generation and Related Businesses Added to Business Objectives
Lowering High-Tech Order Targets While Increasing New Business and Housing Goals
Samsung C&T Corporation's Construction Division has undertaken an organizational restructuring to strengthen its energy business and new ventures, including hydrogen power generation and nuclear power plants. The company has established five business divisions, including the Energy Solutions Division, and is focusing all efforts on securing orders for nuclear power plants and Small Modular Reactors (SMRs). Additionally, seven departments have been created, including a newly established Overseas Sales Department, to enhance order acquisition capabilities.
This organizational restructuring is a proactive measure to secure order volumes. Recently, U.S. President Donald Trump has promoted a 'pro-nuclear' policy, raising expectations for a renaissance in domestic nuclear power plant exports.
Organizational Restructuring into Five Business Divisions
According to the construction industry on the 18th, Samsung C&T reorganized its structure into five business divisions earlier this year. These are the U&I Division (Architecture & Civil Engineering), Housing Development Division, High-Tech Division, Energy Solutions Division, and New Growth Division. Notably, the New Growth Business Headquarters, which had been responsible for discovering new businesses, was elevated to a 'Division' level. This division is tasked with developing new businesses such as healthcare, renewable energy, and investment projects.
The Energy Solutions Division established new business headquarters. Among them, the Power, Renewable Energy, and Nuclear Power Business Headquarters were created, and hydrogen power generation capabilities were strengthened. Samsung C&T plans to add 'hydrogen power generation and related businesses' to its business objectives at the shareholders' meeting scheduled for next month.
The seven departments consist of the Safety and Health Department, Global Operations Department, Overseas Sales Department, ENG Innovation Department, Quality Department, Strategic Business Department, and Management Support Department. Among these, the newly established Overseas Sales Department was created to expand the network of overseas clients and enhance competitiveness in securing orders.
The domestic sales organization was also strengthened. Dispersed teams were reorganized to establish the Domestic Architecture Sales Team and Domestic Civil Engineering Sales Team. By reinforcing sales functions including housing sales, the company plans to strengthen new order acquisition centered on key regions.
Lowering High-Tech Order Targets While Raising New Business and Housing Targets
Along with the organizational restructuring, Samsung C&T has raised its order target compared to the previous year. The construction division's order forecast for this year is KRW 18.6 trillion, an increase of KRW 600 billion from last year's KRW 18 trillion. As large projects such as those in the High-Tech division and power plants enter the final stages, the company plans to focus all efforts on securing construction orders. This is a kind of order portfolio diversification strategy. Last year, the total construction division order performance was KRW 18.042 trillion, of which housing business orders accounted for KRW 3.6 trillion.
The order target for the core High-Tech division was set at KRW 6.7 trillion, down from KRW 8.2 trillion the previous year. The overseas order target increased to KRW 9.8 trillion from KRW 7.5 trillion last year. To compensate for the decrease in the High-Tech sector, the targets for housing, technology-specialized products, and new business sectors each increased by more than KRW 1 trillion.
The order target for the Housing and Development Business Division was set at KRW 5 trillion, an increase of KRW 1.4 trillion compared to the previous year, which also drew attention. In the housing sector, the company plans to integrate platforms (smart homes), AI technologies, and expand new construction rights focusing on premium projects. Riding the momentum from securing the Hannam District 4 project, it is expected to compete consecutively for construction rights in Jamsil Woosung 1, 2, and 3 complexes.
The order target for technology-specialized products such as airports, data centers, and metro systems was set at KRW 1.9 trillion. By strengthening technological competitiveness centered on technology-specialized products, the company aims to secure profitability by promoting customized non-competitive proposal projects tailored to the Middle East and Southeast Asia.
Specific Order Targets for New Businesses Presented
This year, Samsung C&T aims to achieve visible results in new business areas such as Energy Solutions and Modular Off-site Construction (OSC). The new business order target reaches KRW 1.7 trillion. In Europe, the company plans to secure orders in SMR and nuclear power sectors, while in the U.S., it targets the High-Tech sector.
In the Middle East, the order targets include LNG, nuclear power, hydrogen, and metro projects, while in Asia, the focus is on airports, data centers, metro systems, and super high-rise buildings. Among these, in Saudi Arabia, the company is preparing to expand its business by establishing a mass production system for modular buildings and developing core technologies for automated rebar processing, with plans to extend to other regions.
Samsung C&T stated, "We will continue to secure competitiveness through next-generation technology capabilities and transform into a high-profit business structure by localizing key overseas markets and diversifying business models."
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