- A total of 2.4 billion won is invested (jointly by Amco, China Construction Sixth Engineering Bureau and Beijing Hyundai Motor Company) - 'Amco China Ltd.' was officially launched on August 31. - Amco is to make a leap forward into a global construction company by independently carrying out projects in China commissioned by private companies and government agencies.
Hyundai Motor Group’s integrated construction company, Amco targets the Chinese market in full swing.
Amco (Representative: Kim Chang-hee. www.amco.co.kr) announced that by investing a total of 2.4 billion won jointly with Beijing Hyundai Motor Company and China Construction Sixth Engineering Bureau, Amco established a local corporation in Beijing in July.
The 'Amco China Ltd.' was established with Amco investing 65% (1.6 billion won) of initial equity, China Construction Sixth Engineering Bureau, 25%(600 million won) and Beijing Hyundai Motor Company, 10%(250 million won).
‘China Construction Sixth Engineering Bureau’ is a first-grade state-owned construction company operated under the Construction Ministry that has mostly contructed large-scale industrial and residential projects as well as mixed-use complexes combining both residential and commercial units. Meanwhile, ' Beijing Hyundai Motor Company ' is a Hyundai Motors-invested corporation located in Bejing.
Amco made the joint investment with 'China Construction Sixth Engineering Bureau' and ' Beijing Hyundai Motor Company ' to establish a corporation in an effort to secure a bridgehead into the Chinese market and stage aggressive sales campaigns by capitalizing on the construction capabilities of 'China Construction Sixth Engineering Bureau'. It also aims to maximize synergies in construction projects by offering Amco’s advanced modularization technology.
Going forward, 'Amco China Ltd.' will construct projects in China not only for Hyundai-Kia Motors, but also for local government agencies and private companies.
As the Chinese construction industry is expected to enjoy a boom in the run up to the 2008 Bejing Olympics, 'Amco China Ltd. targets to generate about 300 billion krw in revenues by 2008.
Jeon Chang-young, Vice President and Head of Construction Group said, “China, a huge consumption market with much potential, is the main target for Amco in its efforts to transform itself into a full-spectrum global construction company.” He continued, “We will establish our image that is fit for a construction firm of Hyundai Motor Group by capitalizing on our new construction engineering technologies and techniques. He noted that “Given that major projects that we have conducted till now, such as Hyundai-Kia Motor test driving facilities, the Alabama factory, Detroit Technology Research Center, a factory in India, Technology Research Center in Frankfurt, Germany, Hyundai-Kia Motor’s European branch building, Kia Motor’s Slovakia factory were to develop or extend Hyundai Motor Group’s factories and research centers, the establishment of a Chinese branch this time is meaningful in that it provided the chance for the company to carry out construction projects independently. Meanwhile, Amco is to achieve about 1 trillion krw in revenues, up 43% from the same period of the previous year with its accelerated efforts to turn itself into a globally-competitive integrated construction company by establishing its sixth overseas branch following those set up in the U.S., India, Slovakia, Germany and the Czech Republic. The end.
* Photo: Amco, China Construction Sixth Engineering Bureau and Beijing Hyundai Motor Company jointly established a local branch in Beijing, China on August 31. After the establishment, Senior Vice President of Beijing Hyundai Motor Company, Tan Daohong (left), Vice President of Amco, Jeon Chang-young (middle) and Director of China Construction Sixth Engineering Bureau, Wu Chunjun are shaking hands