If Samsung C&T Secures Yeouido Daegyo and Eungsan District 4 Urban Public Housing Projects,
Order Volume Will Surpass 9 Trillion Won
The construction division of Samsung C&T is expected to surpass 9 trillion won in maintenance project orders this year, marking an all-time high.
According to industry sources on October 29, the construction division of Samsung C&T has so far secured orders totaling 7.5501 trillion won. If the Yeouido Daegyo reconstruction project (worth 750 billion won), for which a contractor selection meeting is scheduled for November 15, is added, the total will exceed at least 8 trillion won.
The company also submitted a solo bid for the Eungam District 4 urban public housing complex project (worth 1.9 trillion won), in which it is participating as part of a consortium with DL E&C. With contractor selection scheduled for October 29, the order is expected to be finalized soon. If Samsung C&T secures both projects, its maintenance project orders are expected to soar well above 9 trillion won.
In anticipation of a decline in high-tech sector sales this year, Samsung C&T set a higher-than-usual target for maintenance project orders. Thanks to aggressive bidding, the company is on track to achieve nearly double its annual order target of 5 trillion won.
Starting with the redevelopment of Hannam District 4 in January (1.5695 trillion won), Samsung C&T won the Songpa Daelim Garak reconstruction in February (454.4 billion won), Banghwa 6 reconstruction in March (241.6 billion won), Songpa Hanyang 3rd reconstruction (259.5 billion won), and Sinbanpo 4th reconstruction (1.031 trillion won). In April, it secured the Jangwi 8 public redevelopment (1.1945 trillion won) and the Gwangnaru Hyundai Apartment remodeling (270.8 billion won). In June, it won the construction contract for Ulsan Nam-gu B-04 redevelopment (698.2 billion won).
In July, the company secured the Sinjeong 1152 redevelopment (450.7 billion won), and in August, it won both the Seocho Samho Garden 5th reconstruction (236.9 billion won) and the Gaepo Woosung 7th reconstruction (675.7 billion won). In September, Samsung C&T formed a joint venture with Daewoo Engineering & Construction to win the Mullae 4 redevelopment project (467.3 billion won). Excluding Apgujeong District 2, where the company withdrew from bidding, Samsung C&T achieved a record-high order volume by winning major contracts such as Hannam District 4 and Gaepo Woosung 7th in fierce competition among leading contractors.
Meanwhile, the construction division of Samsung C&T posted an operating profit of 111 billion won in the third quarter, a decrease of 52.97%, and sales of 3.09 trillion won, down 31.06% year-on-year. Both sales and operating profit dropped sharply compared to the previous year, as large-scale projects in sectors such as high-tech reached completion. By segment, sales were as follows: building construction 2.059 trillion won, civil engineering 197 billion won, and plant construction 834 billion won. Domestic sales amounted to 1.0307 trillion won, while overseas sales reached 1.783 trillion won.
A Samsung C&T official stated, "Next year, we expect to see a significant increase in revenue from the large-scale projects secured this year, and we cautiously anticipate a resumption of investment from companies in the high-tech sector. We project a recovery in both sales and profitability compared to this year."
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