Posco E&C has finalized a decision not to take part in the site development work for the new Gadeokdo airport. Ahead of the Ministry of Land, Infrastructure and Transport's re-bidding, it decided to withdraw from the Daewoo E&C consortium after an internal review. Posco E&C was confirmed to have made the decision to focus on handling the Sinansan Line accident and concentrating on national projects such as the GTX-B line.
According to POSCO and Posco E&C on the 9th, Posco E&C decided that day not to participate in the Gadeokdo new airport site development project. As a result, it will also drop out of the Daewoo E&C consortium. Some observers say POSCO Group has been emphasizing safety issues at the group level, and this reflects that stance.
A Posco E&C official said, "We made this decision to focus on resolving the Sinansan Line accident to successfully carry out national projects, and to concentrate on safely completing another national project, the GTX-B line construction."
The consortium for the Gadeokdo new airport site development project, previously led by Hyundai E&C, is being continued by Daewoo E&C after Hyundai E&C withdrew. Posco E&C's consortium equity had been 13.5%, the largest after Daewoo E&C (18%).
Posco E&C announced after an accident last Aug. at the "Gwangmyeong–Seoul Expressway Section 1" construction site that it would suspend new orders for infrastructure projects for a time. However, in the case of the Gadeokdo new airport site project, the project was halted after the lead company, Hyundai E&C, withdrew, and with the Ministry of Land, Infrastructure and Transport set to relaunch it, Posco E&C, the No. 2 company in the consortium, had been seen as a strong participant.
An official at a construction company said, "It is correct that Posco E&C is leaving the Daewoo E&C consortium for this Gadeokdo new airport site development project," adding, "On the 13th we plan to hold a countermeasure meeting to decide whether to replace Posco E&C's slot or adjust the equity."
Daewoo E&C had been forming a consortium to apply for the preliminary qualification (PQ) for bidders by the 16th with the Gadeokdo new airport construction authority. This was to allocate Hyundai E&C's existing equity (25.5%). Participation by Hanwha's construction division, HJ Shipbuilding & Construction, and Jungheung Construction has been finalized, and Lotte E&C's participation is confirmed to be under discussion.
However, many mid-sized and regional builders have expressed an intent to withdraw. KCC E&C, Hyosung Heavy Industries, HL D&I Halla Co., Ltd., and HyupSung, Daejeo Construction, and Dong-Ah Geological Engineering have left the consortium. These builders are said to have decided not to participate after reviewing Hyundai E&C's withdrawal, as the industry leader, and issues related to project safety.