Samsung C&T will establish a subsidiary in Japan in the second half of this year. This decision aims to seek business opportunities in construction and energy infrastructure sectors in collaboration with local partners.
According to Samsung C&T on the 4th, the board of directors recently approved the agenda for establishing a construction subsidiary in Japan. The company is currently working towards the establishment of the Japanese subsidiary, targeting completion in the second half of this year. Currently, only the trading sector of Samsung C&T has a subsidiary in Japan.
A representative from Samsung C&T said, "We are establishing a subsidiary to secure business opportunities through collaboration with our partners rather than just simple construction," and noted, "It is necessary to establish a subsidiary to operate in the local market, and we are preparing for a target establishment in the second half of this year."
Samsung C&T is expected to seek new business opportunities in the energy infrastructure sector in the Japanese market. Samsung C&T is continuously expanding its eco-friendly businesses, such as green hydrogen and small modular reactors (SMRs), as future growth drivers.
In this process, collaboration with Japanese corporations is being strengthened. For its green hydrogen business, Samsung C&T signed a business agreement with Chiyoda Corporation, a leading Japanese engineering firm, in 2023 for the utilization of green hydrogen technology. Last year, it partnered with DGA Energy Solutions Australia, a Japanese company, for a project to build a green hydrogen production facility in Australia.
Samsung C&T is collaborating with IHI Corporation, a leading heavy industry corporation in Japan, on SMR projects. Last month, Samsung C&T successfully completed a proof of concept for modular construction of steel-concrete wall systems for SMR in partnership with IHI. Typically, nuclear power plant structures are built on-site using formwork, rebar, and concrete. However, Samsung C&T and IHI successfully manufactured steel-concrete walls through a modular approach, inserting concrete between pre-fabricated steel panels to assemble them on-site. Based on this, Samsung C&T plans to secure a competitive edge in the global SMR market.
Samsung C&T may also participate in housing and public infrastructure projects in Japan. However, it is expected that there will be limitations in expanding business in this direction due to the complicated entry procedures for foreign corporations and cultural differences inherent to the Japanese market.
A representative from Samsung C&T stated, "Currently, no specific business projects have been finalized."
The scale of the Japanese construction market exceeds 50 trillion yen (approximately 475 trillion won). However, this market has many local construction companies with significant technical capabilities, and its closed nature towards foreign corporations presents high entry barriers among advanced construction markets. Among domestic construction companies, Daewoo E&C has established a corporate presence in Japan. Daewoo E&C entered the Japanese construction market in 1989 by undertaking the construction of the Korean Consulate General in Fukuoka. Since its establishment, it has expanded its business into the information and communication and electronic equipment sectors.