Kolon expects more construction orders overseas after MandAs

By Jung Sung-ki

Kolon Engineering & Construction is aiming to increase its revenue two fold to 3.7 trillion won next year as a result of the latest merger and acquisition of its two affiliates _ Kolon I’Networks and Kolon B&S, company officials said Friday.

On Sept. 28, the board of directors of the construction firm approved a statutory merger agreement with the two affiliates in an effort to maximize shareholder value.

The merger is to go into effect on Dec. 28 following a shareholders’ meeting on Nov. 11, said Park Hui-kyu, a spokesman for the company, which is among the nation’s top 20 builders.

The construction firm is expected to reach 1.4 trillion won in revenue by the year-end, Park said. Kolon I’Networks, involved in trade and IT services, has a revenue target of 1.4 trillion won, while Kolon B&S, which imports BMW vehicles, expects about 700 billion won in sales, he said.

“The latest merger is likely to help improve our firm’s management evaluation, which will lead to an increase in revenue and profit in stages,” the spokesman said. “In the long-term, we hope our company will become among the top 10 construction firms in the country.”

A key focus is to expand the firm’s presence overseas. The construction company plans to take advantage of Kolon I’Networks’ extensive global network, Park said.

The IT firm has sales and marketing branches in 15 cities around the world. They include New York, London, Osaka, Hong Kong, Shanghai, Nanjing, Hanoi, Jakarta, Yemen, Teheran and Istanbul.

The company will dispatch more construction workers to the cities and plans to increase the construction of water-distribution and sewer systems, he said.

Earlier this year, the company secured 185 billion won in water and sewer construction orders in Vietnam and Sri Lanka.