GS E&C on the Move

President Huh looks for stable growth by strengthening each unit
for increased competitiveness



President Huh Myung-soo of GS Engineering and Construction Co. said he will steer the company's management toward stabilized growth for a better balance between caution and rapid growth policies this year.
Huh made the statement during his New Year's address in early January as he looked back proudly at the company's record performance last year － securing 14.1 trillion won worth of new orders while global economic conditions remained bleak overall. The company? sales stood at 7.893 trillion won last year, up 7 percent from the previous year, although operating profit fell 8.3 percent to 521 billion won, mainly due to increased loss provision and marketing costs.
Encouraged by the outstanding record set by the company last year, the company this year has set higher goals, with project orders upped to 16.2 trillion won, sales of 9.38 trillion won and operating profit of 640 billion won under management strategies with a "balance between growth and value management." Key tasks include strengthening project completion capability, advanced safety management, the establishment of growth systems and upgrading the real growth management system, among others.
Under these objectives, the company kicked off its operation to clinch overseas projects early in the year by expanding its project market, which is currently centered around the Middle East, to North Africa and Central and South America, diversifying projects in the process from plant construction to power generation and environment.
The company also will focus on its expansion into sectors outside of its traditional areas such as LNG, coal gasification and other industrial sectors. Huh also plans to lead the company to the construction markets for transportation facilities, energy and environment in the area of infrastructure, which has been growing despite the global economic slowdown. The company will explore the projects in those sectors in such regions as Central and South America, the Middle East and Africa and other emerging markets.
Officials of the company said the company will diversify its business areas from plant construction projects to civil engineering, power and environment and other green projects overseas, which means that the company will be more like a developer taking charge of such operations as planning, creating diverse models of construction projects and project financing, among others. In order to back up the operational strategies, the company set up a new position, Chief Global Officer, to oversee its overseas projects as a control tower.
The company will also focus on the development of core independent technologies for construction, fearing that the company will get caught between construction firms in advanced countries and developing countries in terms of core independent construction technologies without its own core technologies for construction and design, although its skills in other construction areas including engineering, purchasing and construction (EPC) are at advanced levels.
In order to avoid the situation, Huh has decided to set up task forces in each business unit to search for new growth motors and he will also take measures to expand the overseas operations and strengthen the operation of each overseas unit to be more competitive.
Huh has been given huge credit for the company's overcoming the crisis that swept the industry in 2008. He is known as a CEO who takes seriously on-the-jobsite management by constantly touring the company? project sites at home and abroad to listen to what the workers at the jobsite have to say under his unique, open style of management.
When he travels overseas, he takes with him the company's public relations videos in various languages including English, Russian, Vietnamese and Arabic, accompanied by notebooks full of information on the company. He often makes presentations by himself in front of key figures to secure projects, designed to build trust and also to stress to the company's officials and staff the crucial importance of winning the projects.
A graduate of Korea University, he joined LG Electronics in 1981 and stayed with the company for over 20 years. In 2002, he moved to GS Construction as CFO when the company split from LG Group and later was COO before taking over as CEO in 2008. nw

A view of a petrochemical plant built by GS E&C in the Middle East.

Photo on Courtesy of GS E&C