GS Engineering & Construction Corp. aims to more than triple its sales and operating profit by 2020 and secure 35 trillion won ($30.4 billion) in overseas orders as part of its long-term roadmap to become a global player.
Korea’s third-largest builder on Monday unveiled ambitious goals of making 27 trillion won in sales and 2 trillion won in operating profit by 2020, both up more than 330 percent from 2010. Its orders totaled 14 trillion won in 2010.
The company said it will also boost international operations to 70 percent of total revenue over the next 10 years from the current 28 percent.
GS E&C pledged 5 trillion won in investment in up-and-coming areas such as desalination, natural gas liquefaction and offshore power generation, 700 billion won of which is for this year. It set aside another 500 billion won for mergers or acquisitions.
The comprehensive package was introduced at a company event in Seoul to celebrate the New Year with employees.
“The increasingly unpredictable business environment prompted me to overhaul the company’s existing blueprint and draw up new tactics to join the top tier of the global engineering and construction market,” said Huh Myung-soo, president and chief executive of GS E&C.
At the meeting, Huh said that the company will speed up its transition to knowledge-based technologies from housing construction and petrochemicals.
With globalization as the keyword for the new growth strategies, the firm will bring in a significant number of foreign nationals for executive and managerial positions, Huh said, without providing specific figures.
GS Group, the builders’ parent company, said last month it will hire 2,900 young and experienced people this year for all its affiliates. That is about 3.6 percent up from last year’s 2,800.
GS E&C shares edged up 4.82 percent, or 4,500 won, on Tuesday to end at 97,800 won. The company’s announcements were disseminated after the market closed on Monday.
By Shin Hyon-hee
(
heeshin@heraldcorp.com)
