Welcron Hantec, a plant and general construction company, has secured a major new contract following the resolution of its financial risks, laying the groundwork for renewed growth.
The company said Tuesday it signed a 79.9 billion won ($55.9 million) contract with KB Golden Life Care for the construction of Bukwirye Village, a new senior welfare housing complex.
The project involves building an urban senior welfare housing facility in a prime Greater Seoul location. The contract follows the recent confirmation of 42.45 billion won in debt forgiveness and the reversal of provisions. The company said it expects the deal to serve as a catalyst for improving its financial structure and turning around its earnings. It added that securing a large-scale order immediately after shedding its financial risks should dispel market concerns and provide a solid platform for growth.
Welcron Hantec has previously demonstrated its construction capabilities and reliability in the specialized architecture sector by completing KB Golden Life Care's Seocho Village and Eunpyeong Village projects, both developed by KB Life Insurance's senior care subsidiary. The company said the latest contract reflects the high regard for the quality and expertise it showed on those earlier projects.
"We have added a major new order at a time when our external credibility and liquidity have improved through a stronger financial structure," the company said. "A green light has turned on for an earnings rebound and a return to profitability in the second half of the year. We expect to achieve a visible turnaround in results."
freiheit@heraldcorp.com
