GS Engineering and Construction said Thursday it is officially entering the precast concrete business by building a precast concrete factory in North Chungcheong Province.

According to the company, it signed an investment agreement with the North Chungcheong provincial government and Eumseong County on Wednesday, to build the factory in the region.

The factory will be built on a 150,000-square-meter plot of land inside the General Industrial Complex in Eumseong County, and it will be capable of producing up to 100,000 cubic meters of precast concrete annually, the company said.

Concrete is usually poured at a construction site, but precast concrete is produced inside a controlled factory environment. The precast concrete products, such as pillars and beams, are made in reuseable molds and transported to the site where they can be craned into position.

GS E&C said it will start the construction of the factory next month, and it is expected to be completed in June 2021. The PC factory will be equipped with the newest automation production facilities, and the total investment is expected to go over 100 billion won ($82.8 million), an estimate that includes funds for its future expansion plan, GS E&C said.

With its new business, GS E&C seeks to reinforce the portfolio of its prefab modular business that is led by Huh Yoon-hong, the GS E&C President of New Business. The company has recently begun its prefab modular business, by investing 200 billion won to acquire two modular companies in England and Poland in January.

“From the PC business and the acquisition of the two companies from overseas, we have prepared the ground for GS E&C to take a leap,” Huh said.

“We will make an effort to ensure a stronger presence in the global prefab modular market.“

By Jo He-rim (herim@heraldcorp.com)