A landfill is pictured in this file photo provided by the Sudokwon Landfill Site Management Corp.
SEOUL, May 12 (Korea Bizwire) — South Korea’s construction companies are moving into the waste processing business by acquiring a string of waste processing companies.
As the waste processing market grows at a blistering pace with the amount of waste increasing sharply since the outbreak of the COVID-19, they are attempting to develop the waste processing business into a new cash cow.
The waste processing business is also an area where construction companies can maximize a synergy effect since a significant amount of waste is generated during the construction process.
Among major construction firms, SK Engineering & Construction Co. is making the biggest investment in this business area.
The company took over EMC Holdings, a specialist in the operation of incinerators and sewage and waste water processing facilities, for 1 trillion won (US$891 million) last year.
Earlier this year, SK E&C also acquired the remaining stake in YS Tech, the operator of a landfill in the city of Gyeongju, making it a 100 percent owned subsidiary.
Local builder Dongbu Corp. spun off its waste processing business last year and established a new entity called Dongbu nTech.
IS Dongseo Co., a mid-sized construction company, acquired metallic waste recycling company Town Mining Co. through a private equity fund in which it participated as the largest investor last month.
According to the Korea Waste Association, the amount of waste generated per day in South Korea has been on an upward trend, rising from 429,500 tons in 2017 to 446,100 tons in 2018 and 497,200 tons in 2019.
J. S. Shin (js_shin@koreabizwire.com)
