Posco International announced Wednesday that the company would join Ukraine’s reconstruction, starting with setting up a factory to manufacture modules for new buildings in war-torn regions of the country.

Posco International Vice Chairman Jeong Tak on Tuesday met with Vitaliy Kim, governor of Mykolaiv, in Ukraine's capital Kyiv to sign a memorandum of understanding for the construction of a modular factory in Mykolaiv, the city on the Black Sea in southern Ukraine.

Modular construction is a process by which standardized components of a building are prefabricated in an off-site factory and then shipped to the project site for assembly. The process can reduce construction time by more than half.

The new factory in Mykolaiv will produce modules that can be immediately used in reconstructing buildings such as homes, schools and hospitals.

For the latest project, Posco International will work with Posco Architects & Consultants, the architecture unit of Posco Group that has the capability to manage the process of designing, manufacturing and constructing modular buildings.

Posco International will also utilize a business network the company established through operating a grain terminal in Mykolaiv.

“Following the latest signing, Posco International plans to look into additional infrastructure projects in Ukraine,” an official from Posco International said.

Meanwhile, Jeong met with Ukrainian Prime Minister Denys Shmyhal in Kyiv during his visit to Ukraine to discuss the Ukrainian government’s support for building the new plant in Mykolaiv.

Jeong also said Posco Group would put forth all its capabilities, involving steel, energy, construction and information technology, to help Ukraine reconstruct the country in the future.