Ssangyong to continue projects in Singapore, Malaysia despite financial woes

By 정주원
  • Published : Jan 17, 2014 - 17:55
  • Updated : Jan 17, 2014 - 17:55

Ssangyong Engineering & Construction Co. said Friday that it will continue seven large projects in Singapore and Malaysia despite the company being placed under court protection.

Chairman Kim Seok-joon has agreed with officials from the two countries' governments and private firms to continue to carry out its projects worth around 2 trillion won ($1.9 billion) as planned, the builder said.

The projects include the Marina Coastal Expressway in Singapore and St. Regis Langkawi Hotel in Malaysia.

Ssangyong, like many in the sector, has been hit hard by the downturn in the construction sector as a whole, causing it to suffer a liquidity crunch.

It was placed under court protection late last year, however, effectively shielding it from creditors. The move aims to facilitate the company's full recovery.

The court at the time said if the company's overseas construction projects were affected by its financial problems, it would have a negative impact on the larger economy.

The builder, the 16th largest in South Korea in terms of construction capacity, has shown its prowess particularly in overseas markets by building such landmarks as the Marina Bay Sands Hotel in Singapore.

On headway made, a corporate source said Kim's extensive experience in dealing with clients and the trust he has been able to build up over the years played a role.

He pointed out that despite the liquidity issue that caused Ssangyong to reschedule its debts for several months before being placed under court protection, the builder ranked No. 1 in a field assessment of contractors carried out by the Singapore government last year.

The securing of the orders is expected to help the company better cope with its current problems and make a full recovery. (Yonhap News)