GS E&C bolsters modular business through acquisition of three foreign companies
SEOUL, AJU - Through the acquisition of three well-known modular companies in Poland, Britain and the United States, GS E&C, a major builder in South Korea, hopes to become a key player in the global construction market which has been dominated by Chinese and European companies.
GS E&C said Tuesday that it has signed a contract to acquire Danwood S.A., a Polish wooden modular housing company, for about 180 billion won ($155 million). The deal came after the builder completed the acquisition of Elements Europe, a British modular company. S E&C is also set to sign a deal on the acquisition of an unnamed U.S. modular company in February.
A modular construction method involves constructing sections away from building sites. Prefabricated modular buildings consist of repeated sections called modules. The modular market has been formed mainly in advanced countries.
GS E&C aims to enhance its presence in the modular market by combining the strengths and networks of each modular company. "The acquisition has laid the foundation for GS E&C to take a leap forward through change and innovation amid the rapidly changing business environment," said GS E&C president Huh Yoon-hong. "We will try to solidify our presence in the global modular market through synergy between acquired companies."