In the unprecedented construction recession, large construction companies are busy looking for ways to survive. In the dwellings business, 'selection and concentration' has become the trend, and they are also actively undergoing 'organizational restructuring' for new business expansion.
According to the construction industry on the 24th, Samsung C&T passed a charter amendment at its regular shareholders' meeting on the 14th, adding hydrogen power generation and related ancillary industries as business objectives. This is interpreted as an intention to secure a leading position in hydrogen production, storage, and transportation infrastructure.
Samsung C&T also conducted an organizational restructuring earlier this year to expand its new business. The divisions were restructured into five institutional sectors: ▲ U&I Division (Construction and Civil Engineering) ▲ Dwellings Development Division ▲ High-Tech Division ▲ Energy Solutions Division ▲ New Growth Division. Among these, the New Growth Division has been elevated from its previous 'headquarters' scale. A new headquarters for electricity, renewable energy, and nuclear power was established within the Energy Solutions Division, interpreted as a measure to focus on hydrogen power generation.
Hyundai E&C recently underwent a small organizational restructuring to secure advantageous business sites in the dwellings market. To gain an edge in the bidding for the Apgujeong District 2 project scheduled for June, it recently established the 'Apgujeong Reconstruction Sales Team.' This was formalized from a task force created in December 2023.
On the other hand, they decided to reduce less profitable businesses. The remodeling sales team was absorbed into the urban maintenance promotion office teams 1 and 2 through organizational restructuring. Hyundai E&C maintains that it will continue to secure remodeling projects, but as the formal organization has been dismantled, it is expected that the number of orders will naturally decrease. The rise in construction costs is attributed to the increase in raw material prices, labor costs, and financing costs. While reconstruction and redevelopment can cover costs through general sales, it is difficult to reduce additional contributions when construction costs rise in remodeling.
DL E&C established a new bidding technology office at the end of last year, combining the sales organizations of various sectors such as dwellings and plants. Since 2023, DL E&C has been undergoing organizational restructuring to strengthen its plant business. Under the Plant Business Division, what was previously one sales bidding team has now been divided into sales teams by business sector and task. It currently consists of five teams: ▲ Plant Sales Team ▲ Plant Bidding Team ▲ Plant Estimation Team ▲ Nuclear Power and SMR Project Team ▲ Secondary Battery Task Force Team.
Daewoo E&C established the 'Smart Construction Technology Research Team' dedicated to the development and operation of smart technologies and the 'Environmental Water Treatment Team' in preparation for the expansion of outdated wastewater treatment plant modernization projects at the end of last year. These are all measures for new business expansion. They also reorganized their local corporation, DECV, in Vietnam to pave the way for expanding local construction and development projects.
An official from a major construction company noted, 'During the boom in the dwellings market, each construction company expanded its organization related to the dwellings business,' adding, 'Given the expected downturn in the dwellings business for some time, internal organizational restructuring is likely to occur actively.'