[Market Now] Dong-Ah Geological secures orders for Samsung C&T’s subway construction

Dong-Ah Geological Engineering, a listed tunnel construction company, has secured a contract to provide tunnel excavation services to Samsung C&T for the construction of the third phase of Seoul Subway Line No. 9.

Dong-Ah will be using its shield tunnel boring machine method for the No. 9 subway tunnel construction under the contract worth about 10.7 billion won ($9.35 million), or about 4 percent of the company’s sales, according to a regulatory filing. 

The company is obligated to carry out the tunnel project by July next year.

Construction orders from Samsung C&T, a construction giant of Samsung Group, account for about 8 percent of Dong-Ah’s annual sales. Dong-Ah’s biggest customers include Daewoo Engineering & Construction and Daelim Industrial. Dong-Ah chairman Lee Jung-woo is the owner of the company with a 30.5 percent stake.

By Park Hyong-ki (hkp@heraldcorp.com)