GS Engineering and Construction provided approximately 160 billion won in funding to the Polish modular housing specialist 'Danwood' (Danwood S.A.), which it acquired 5 years ago. This is to expand into not only its main market in Germany but also neighboring European countries.
According to the electronic disclosure system on the 27th, GS Engineering and Construction decided on the 13th to guarantee a debt of 158.11 billion won (1 million euros) for its overseas subsidiary, Danwood.
The debt guarantee period for GS Engineering and Construction is 3 years, from the 27th to March 27, 2028. Funding will be arranged for Danwood through Korea Development Bank.
GS Engineering and Construction has positioned the Prefab business, a construction method that assembles and installs modules manufactured in factories on-site, as the core of its new business.
Five years ago, it entered the overseas prefab business by acquiring Danwood, a Polish wooden modular housing specialist, and 'Elements,' a British steel modular company.
In particular, Danwood holds the top market share in the turnkey modular housing sector in Germany. It has been evaluated as having secured cost competitiveness by automating over 150 designs and manufacturing processes.
GS Engineering and Construction initiated this funding to secure additional resources for Danwood's entry into new markets.
According to the overseas construction industry, there are growing expectations that the European market will recover with falling interest rates.
GS Engineering and Construction plans to utilize these funds to develop new products for the prefab market, expanding from its main markets centered on Germany to neighboring European countries.
Currently, there are also plans under consideration to expand production facilities that can manufacture specialized products for overseas markets.
A representative from GS Engineering and Construction noted, 'We are actively supporting our overseas subsidiaries to strengthen our position in the prefab business in foreign markets,' and explained, 'Securing stable funds is essential for entering new markets and pursuing new businesses.'
They added that they plan to secure a strong position in business-to-consumer (B2C) transactions and expand into business-to-business (B2B) transactions in the future.
Meanwhile, GS Engineering and Construction acquired Danwood for about 180 billion won in March 2020 through its Eastern European subsidiary 'GS E&C Poland SP.ZO.O.'