GS Geonseol Leaps Forward as a Global Prefab Leader

K-Construction, New Challenge
Acquires Two Leading European Modular Companies
Pre-fabrication and Transport for Installation
Reduces Environmental Pollution... Focus on ESG Business

Editor's NoteDomestic construction companies are going through hectic days as they challenge themselves to discover future growth engines. They travel across sites in North America, Europe, and the Middle East in search of new projects and hold meetings day and night to explore various new businesses. Their efforts have yielded results. Through overseas orders, they have expanded their order territories and diversified construction types, laying the foundation for qualitative growth in overseas markets. In particular, the overseas construction orders in Saudi Arabia, driven by oil money, reached $6.25705 billion, about twice the amount of $3 billion in the same period last year. Additional large-scale project orders are also expected next year. Moreover, domestic construction companies are planting the K-Construction flag in new territories such as Panama and Yemen, where they had not previously entered. They are also focused on securing technological capabilities in new technology and new industry sectors. Research and development (R&D) to apply to rapidly changing residential cultures and construction sites are ongoing. This article introduces the achievements and various efforts of domestic construction companies seeking sustainable management and new growth engines.

GS Engineering & Construction (GS E&C) is emerging as a leader in the eco-friendly construction method known as 'Prefab.' After simultaneously acquiring two advanced European modular companies in 2020 and entering the prefab business, GS E&C is determined to become a domestic and international prefab powerhouse through continuous technological development, expanding into precast concrete (PC) and wooden modular housing businesses. Prefab refers to a method where structures (modules) are pre-manufactured and assembled on-site.

A sample of wooden modular houses supplied by Danwood, a GS Engineering & Construction subsidiary located in Poland. [Image provided by GS Engineering & Construction]

Entry into Prefab Business through Acquisition of Advanced European Modular Companies

In early 2020, GS E&C became the first domestic construction company to enter the prefab business by acquiring advanced overseas modular companies. The companies acquired by GS E&C are Danwood, a wooden modular housing specialist located in Białystok, Poland, and Elements Europe, a steel modular specialist based in the UK.

First, Danwood in Poland is a wooden detached house specialist and a strong player ranked 4th in sales in the German modular housing market. Its strengths include about 150 designs with Danish sensibility and cost competitiveness secured through automation of manufacturing processes. Its main markets are Germany, the UK, Austria, Switzerland, and Poland, with plans to expand supply across Europe, including the Scandinavian Peninsula such as Sweden and Norway.

Elements Europe is a steel modular specialist with numerous high-rise modular achievements in the UK, including recently completed luxury residences in London. Elements Europe also operates a bathroom modular (Bathroom POD) business applicable to conventional construction methods and ranks 3rd in sales among modular companies in the UK.

A bird's-eye view of the 'Camp Hill' project, the largest modular housing project in the UK, won by Elements Europe, a GS Construction subsidiary located in the UK, in June. [Image provided by GS Construction]

GS E&C aims to become a global leader by leveraging the strengths, technologies, and networks of the two modular companies it acquired. Notably, Elements Europe secured the East Road project in London last year, constructing a 23-story office hotel worth approximately ?38.8 million (about KRW 62 billion) using modular methods. In June this year, it also won the UK's largest modular housing project, valued at about ?12.98 million (approximately KRW 21 billion), consisting of up to 26 floors, 6 buildings, and 550 units.

The modular method applied by Elements Europe in these projects involves pre-manufacturing modules designed in-house at their factory and transporting them to the site for installation. This process is expected to minimize environmental pollution that may occur at construction sites. It significantly reduces noise, pollution, and congestion in nearby areas, drawing attention as part of ESG (Environmental, Social, and Governance) eco-friendly projects.

Expansion of Domestic PC and Wooden Modular Detached Housing Business Based on Advanced Modular Technology

GS E&C is also expanding its modular business domestically. In 2020, it officially entered the PC business and established GPC, a PC manufacturing subsidiary. GPC completed a factory in 2021 on a site of about 150,000㎡ (45,000 pyeong) in Eumseong-gun, Chungbuk Province, capable of producing 100,000㎥ of PC annually. Through this, it supplies PC to numerous large logistics centers, factories, and underground parking lot sites. Recently, it has been expanding its business scope by consecutively winning orders for PC production and supply at Samsung Electronics' semiconductor sites (Pyeongtaek) P4 and P5.

Exterior view of GPC Chungbuk Eumseong Plant, a PC (Precast Concrete) manufacturing subsidiary of GS Engineering & Construction. [Photo by GS Engineering & Construction]

GS E&C is also accelerating its domestic wooden modular detached housing business. In April, GS E&C announced that its wooden modular detached housing specialist subsidiary, XiGEIST, would officially enter the domestic detached housing market. XiGEIST is a modular detached housing specialist company using prefab methods, established in 2020 as a 100% subsidiary of GS E&C.

The modular houses supplied by XiGEIST have the advantage of ensuring uniform quality. Unlike general detached houses, which vary depending on the skill level of on-site workers, XiGEIST's modular houses are produced in factories to secure consistent quality. Minimizing on-site processes allows delivery within as fast as two months (excluding design and permit periods). Additionally, applying GS E&C's Xi design, technology, and interior concepts will enable detached house customers to enjoy the Xi premium in wooden modular houses.

Exterior view of the wooden modular house sample installed by Jaigaist on the factory site in Dangjin, Chungnam.
[Photo by GS Construction]

Continuous R&D on Prefab and Strengthening Business Support

GS E&C continues research and development on prefab technologies and methods. The 'fireproof system' developed by GS E&C has been patented, and the one-touch 'Quick Connector' has been patented and received technical certification from the Korean Society of Earthquake Engineering.

First, GS E&C developed a new construction method improving the fireproof system and structural joint system, which were chronic issues in existing steel modular buildings. The patented 'fireproof performance secured building module and construction method using the same' involves attaching fireproof boards sprayed with fireproof material at the lower part where modules meet, securing fire resistance for three hours.

GS E&C also developed the 'Quick Connector' technology, a one-touch connection method that allows modules to be connected without on-site tightening work while achieving the same performance as high-strength bolts. This technology is crucial for ensuring stability in steel modular construction methods. GS E&C expects this to minimize work, solve difficulties in error management, and simultaneously improve constructability and cost.

Cross-section of the 'Quick Connector,' a one-touch connection joint method between modules developed by GS Engineering & Construction. [Image provided by GS Engineering & Construction]

GS E&C is also strengthening systematic business support through R&D related to prefab. The 'Prefab Business Group' of GS E&C's New Business Headquarters and the R&D headquarters 'RIF Tech' communicate closely to continuously research and develop prefab construction technologies. Recently, a mock-up replicating steel modular construction was installed at GS E&C's Technology Research Institute in Yongin, Gyeonggi Province, where studies on improving residential performance such as inter-floor noise and airtightness of modular houses are underway.

Meanwhile, GS E&C's Prefab Business Group in the New Business Headquarters led the division with sales of about KRW 610 billion last year. This success is attributed to the performance of Danwood, the Polish modular housing specialist acquired in 2020, Elements Europe, the UK steel modular specialist, and GPC, the PC specialist subsidiary established in 2020. The B2C business of XiGEIST's detached houses, which is set to accelerate this year, is expected to further boost momentum.

A GS E&C official said, “We are focusing on various technology developments and verifications to strengthen prefab business capabilities and making every effort to proactively secure the necessary technologies for the business. We will strive to solidify our position in the global prefab business market through synergies from ongoing domestic and overseas projects.”

This content was produced with the assistance of AI translation services.