POSCO E&C has decided to suspend new infrastructure orders for the time being, resulting in its withdrawal from the consortium for the construction of the new Gadeok International Airport. Daewoo E&C, which will take on the role of the consortium's representative, now faces the situation of needing to find two large construction companies.

On the 6th, a red light is on at the traffic signal in front of the POSCO Songdo headquarters located in Songdo International City, Yeonsu District, Incheon. /Courtesy of News1

A POSCO E&C official said on the 7th, "As part of the decision to suspend infrastructure orders until safety is secured and the market trusts it, we have also withdrawn from the Gadeok International Airport consortium."

Song Chi-young, the new president of POSCO E&C, stated during a visit to the construction site of the "Gwangmyeong-Seoul Expressway, section 1" the previous day that the company would suspend new infrastructure orders for the time being. It appears that the majority of the sites where serious accidents have occurred this year were civil engineering projects. President Song noted, "Creating a safe workplace is the top priority over immediate business performance."

The withdrawal of POSCO E&C from the consortium increases the likelihood of further delays in the land development project for the "Gadeok International Airport." The industry anticipates that the Gadeok International Airport Construction Authority will proceed with the rebidding process this month. It has been tentatively decided that the so-called "Daewoo E&C consortium" will participate in the rebid. The lead contractor, Daewoo E&C, and POSCO E&C were supposed to receive a significant portion of Hyundai E&C's existing 25.5% equity stake.

A Daewoo E&C official said, "We are in a situation where we need to find a new large construction company to participate." Currently, Hanwha's construction division, Lotte Construction, and others are hoping to join the consortium for the land development project of the Gadeok International Airport.

Kim Jeong-hee, the head of the Gadeok International Airport Promotion Team at the Ministry of Land, Infrastructure and Transport, stated, "The formation of the consortium is a matter that the industry will proceed with autonomously," adding, "I believe the lead contractor will find an alternative company."

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