Rebranding trend continues in construction industry
The trend of rebranding company names within the Korean construction industry continues this year, as a lingering slump in the local housing market and recent bad press, has prompted domestic construction firms to diversify their business portfolios, according to industry officials Friday.
To steer clear of being perceived as outdated, construction firms have been aiming to secure future growth engines through lucrative and eco-friendly new businesses.
Samsung Engineering recently changed its name to Samsung E&A, which is its first name change in 33 years after its parent firm changed the construction firm’s name in 1991 from Korea Engineering, founded in 1970 and acquired by Samsung in 1978.
“The letter E stands for engineers, and it represents our strong asset in engineering technology but also our employees, the enablers of our business, who will expand our future business value chain to the energy and environmental sectors and create a sustainable Earth and ecological future with a focus on innovation,” Samsung E&A said after its shareholders approved the rebranding on Thursday.
“The letter A stands for the word ahead, embodying the values and determination as a first mover in the history of the Korean engineering industry, consistently at the forefront of change, and pioneering the future with a differentiated, innovative execution.”
Samsung E&A CEO Namkoong Hong also told shareholders that with the new name, the company will further strengthen innovation processes and focus on preparing for the future by constantly implementing industry-leading changes in preparation for the energy transition era.
SGC eTEC E&C, which had only highlighted the word construction in its Korean name, changed its Korean and English names to SGC E&C on Wednesday to better express its intention of focusing not only on construction but also on engineering and procurement. The company said it will expand its presence overseas with its new name.
Other Korean construction firms have also eliminated the word construction from their Korean names over the past few years.
When POSCO E&C replaced the word construction in its Korean name with E&C last year, the company said that the letter E now stands for the word eco, not engineering, and that the letter C stands for the word challenge, not construction. After the rebranding, POSCO E&C has expanded its presence in hydrogen, offshore wind power and small modular reactor industries.
SK ecoplant, which was called SK E&C for its English name and underscored the word construction in its Korean name, was rebranded in May 2021 with the promise to become an eco-friendly company. It has recently focused on wastewater treatment and recycling of waste batteries.
Daelim Industrial changed its Korean and English names to DL E&C in January 2021, saying that it would push ahead with the carbon capture, utilization and storage business.