Company pushes for value chain upgrade and expansion into overseas markets
Samsung C&T Corp., a listed construction arm of the Samsung Group, is pushing ahead with a set of measures to turn itself into a global total solutions provider.
The company, established in 1938, is expanding its coverage into feasibility surveying, engineering, procurement, construction and operation and management.
The expansion of the value chain, Samsung said, is aimed at detecting and developing fresh business opportunities on the global market, and thereby strengthening its overall position.
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Samsung C&T Corp. has been building major power plants across the world, including Al Shuweihat 2 Independent Water and Power Plant in UAE. (Samsung C&T Corp.) |
The strategy is already paying off. A case in point is the landmark contract Samsung won in 2011: the development of the Qurayyah Independent Power Project. Set to be located at Qurayyah on the eastern coast of Saudi Arabia, the IPP will be the largest combined cycle gas-fired power plant in the world when completed. Especially important is that Samsung will handle not only the development but also operation and management in a way that expands its value chain significantly.
Another anchor that beefs up Samsung’s market position lies in the commercialization of new strategic items. Samsung has been nurturing 23 growth items including super-tall high-rise, road and bridge, power generation, health care, aviation and urban development.
The company plans to firm up its grip on the private power generation market while adding new business items such as solar energy, eco-friendly plants and energy storage to its portfolio.
In the construction sector, Samsung is aiming to snap up new high rise projects based on its expertise accumulated through previous projects. Samsung has built up its global reputation by winning a host of high-profile projects: Burj Khalifa, the world’s tallest building; Incheon Bridge, a large-scale cable stayed bridge; and Abu Dhabi’s first nuclear power station.
Samsung is also making inroads into overseas urban regeneration projects and other future-oriented infrastructure deals that involve the combination of health care services and energy development.
Samsung said it expects tangible results from its new business projects starting from this year.
Samsung is reconfiguring not only its business model but also its regional focus. For instance, it grabbed a new road project in Qatar in January this year, worth $296 million. The diversification of the target market will expand the focus from UAE and Singapore into other regions. Samsung eyes Saudi Arabia, Kuwait, Qatar, as well as Indonesia and Malaysia, while continuing to broaden its operations across the globe.
In particular, Samsung said it aims to secure new projects in North America and Europe this year.
To help accelerate the market expansion and value chain upgrade, Samsung is adopting a new business infrastructure that allows for the real-time sharing and consolidation of corporate information and expertise.
By Yang Sung-jin (
insight@heraldcorp.com)
