DL E&C

Held the 2011 Management Strategy Meeting

*Pushing for marketing driven change
*Maintaining a competitive edge steadily by coping with market changes preemptively.

Daelim Industrial Co., Ltd. has decided “Marketing Driven Change” as its 2011 strategy in accordance with a plan to put management policies to practice around customers and the market. Marketing Driven Change means that the company will steadily create its competitive edge by securing an insight into its customers and the market and preemptively responding to market changes on the foundation of the insight.  

With an eye toward achieving its goals in 2011, Daelim Industrial selected “1) To reinforce power to respond to the market, 2) To reinforce its business competitiveness and 3) To improve the organization and human resources” as three strategic tasks. In particular, with the aim of creating environment-friendly living spaces, Daelim Industrial has concentrated on the Green Daelim initiative since 2009. The company will reinforce its ability to respond to the market by pushing forward with the initiative. At the same time, the company will focus on the management of Smart Daelim so that it can contribute to enhancing its business competitiveness through digitization. In order to improve the organization and human resources, the company is planning to strengthen its global business competitiveness by nurturing talented people in charge of strategic tasks and encouraging employees to have global capabilities.

▣ Business Goals in 2011

“Business environments at home and abroad require us to make a lot of changes,” said Kim Jong-In, vice chairman of Daelim Industrial Co., Ltd. “Let’s change the way we think and ourselves actively with a view to actively coping with change in the market by thinking out of the box.” It is evaluated that Daelim Industrial will continue its business stably as it maintains a business portfolio where three business sectors —civil engineering, building and housing and plant (domestic/overseas) are well balanced and diversified. Daelim Industrial aims at posting a total of KRW10.8 trillion in new orders including those of local corporations, which is broken down to KRW2.15 trillion in the civil engineering sector, KRW2.65 trillion in the building and housing sector and KRW6 trillion in the plant sector.

▣Strategies by Each Sector in 2011

Civil Engineering Division
The Civil Engineering Division will maintain its competitive edge in the core business sectors such as bridges, dams and harbors and focus on investing in research and development of core technology in specialized sectors such as special sea bridges and design management. On the other hand, for the purpose of securing differentiated competitiveness, the division will devote itself to securing price competitiveness and profitability. In particular, according to its strategy to turn this year into the “beginning year of the establishment of a global business system,” the division will concentrate on expanding the portion of the overseas market by expanding and reinforcing the global business organization and network. Moreover, with an eye toward tackling market changes called, “low-carbon green growth,” the division is planning on securing capabilities to carry out new environmental projects such as water treatment and offshore wind power industry.

Building and Housing Division
The Building and Housing Division will apply its energy to building a stable profit-making base through practical management in 2011. The division will focus on winning profitable orders such as redevelopment and reconstruction projects in the Seoul metropolitan area as it is expected that private contract projects and the division’s own business will see their profitability inevitably weakened. Moreover, the division will mitigate risks by reinforcing its capabilities in the non-housing market such as public and general construction. The division will further develop its environment-friendly and low-energy consumption construction technology. We are recognized as one of the leaders in this sector after building energy-saving apartments which reduce energy use by 50% for the first time. For reference, the green home standard by the Ministry of Land, Transportation and Maritime Affairs is 25%. The division will also develop next-generation technologies to finish “ECO House” which consumes nearly no energy by the end of 2012.

Plant Division
The Plant Division has been enjoying strong growth every year. This year, the division will bolster global business capabilities on the foundation of highly valuable market intelligence produced through accurate analyses of the market, clients, competitors and itself. In particular, the division will stay focused on projects that can guarantee profitability in order to choose substance over appearance. In an effort to develop new growth engines in global projects and to diversify products, the division will make inroads into the markets of power generation and energy including nuclear power generation, environment and industrial facilities. In addition, with the aim of strengthening its project portfolio, the division will increase its order-winning capability for projects in Saudi Arabia and Kuwait on the basis of its experiences and trust which Daelim Industrial accumulated over the past several decades. At the same time, the division will seek ways to develop new markets through intensive analyses of risks and market situations. The division is planning to earn trust from customers at a time when it face increasing difficulties such as a lack of equipment and human resources with a sharp increase in the number of overseas orders. To this end, the division will zoom in on world-class project and risk management.