Conglomerates
The four construction-related companies within the Samsung Group are moving forward together with various cooperative businesses. These efforts seem to precede Samsung Group’s business reorganization.
According to industry reports released on September 24, Samsung C&T’s Engineering & Construction Group, Samsung Everland’s construction division, Samsung Heavy Industries’ construction division, and Samsung Engineering have built a joint system for cooperation. The four construction-related companies within the Samsung Group will cooperate in the fields of materials purchase, partnership management, partnership support, and partnership discovery.
In particular, the four companies will seek, register, and support strategic partnerships together, essentially working as one company. “The four companies work together on partnerships. They are seeking synergy effects through this cooperation,” explained industry personnel.
They also purchase common materials together. It is difficult to cooperate on materials that are specific to a certain company, but most general materials can be purchased together. “Motors, pipes, and valves are purchased together. They’re considering expanding this list,” said another industry personnel.
Some analyze that this could affect the reorganization of Samsung Group’s construction-related businesses in the coming future.
Personnel moving from Samsung Heavy Industries construction division to Samsung Everland is also interpreted as part of the business reorganization. Furthermore, Samsung Everland has won a contract for the remodeling of the Samsung Electronics boarding house in Giheung, expanding the construction contracts within the group. Also, Samsung C&T recently bought a small share in Samsung Engineering, adding to the busy activities within the four companies.
These movements are not significant enough to immediately affect the current system and management. However, many events such as Cheil Industries passing over the fashion business to Everland point to the fact that Samsung Group’s business reorganization may speed up.