Daewoo Engineering forms task force to capture Middle East reconstruction market

Daewoo Engineering & Construction is forming a "Middle East Reconstruction Task Force" to move quickly into the region's rebuilding and development investment market. The move comes amid growing optimism in South Korea's construction industry following news of a ceasefire agreement between the United States and Iran, with the company aiming to launch a mid- to long-term contract strategy through a dedicated unit.

The company said Tuesday it will establish a cross-divisional council centered on its Global Infrastructure Division, which oversees overseas sales, bringing together the overseas development and contract functions of its plant, civil engineering and architecture business units.

Daewoo Engineering & Construction said it will concentrate on winning infrastructure recovery contracts in Middle Eastern countries where it has prior experience, while laying the groundwork for a return to the Iranian market. The company has previously carried out a range of projects in Iran, including the Bandar Abbas–Bafq railway, the Ahvaz power plant and an offshore oil terminal on Kharg Island.

The task force will also work closely with the Ministry of Land, Infrastructure and Transport and the Overseas Construction Association of Korea to build a monitoring framework for the Middle East reconstruction market and gather new project leads through domestic and international networks. The company said it will actively participate in forming a "Team Korea" collaborative structure among major South Korean construction firms.

Daewoo Engineering & Construction expects the war to trigger a wave of contract awards for energy pipeline restoration as well as upgrades to oil refining, petrochemical and gas processing facilities. It also anticipates new market opportunities in power and port infrastructure repairs, along with housing and urban development.

"We expect to expand our overseas business in the reconstruction markets of major oil-producing countries where we have built competitiveness through prior experience, and to contribute to raising South Korea's standing," a company official said. "If the Iranian market opens up, it will create a new opportunity for the entire domestic construction industry, and we plan to prepare proactively."

Meanwhile, Daewoo Engineering & Construction is also pursuing new business ventures alongside its overseas expansion push, including positioning data centers as a core growth driver in its non-housing segment.