Yoon Huck-noh, head of SK E&C’s high-tech business division and Senior Executive Vice President Reinhard Schindler of Hilti hold a copy of a cooperation agreement they signed over a teleconference.

SK E&C is trying to explore new business models by joining forces with Hilti, a global leader in providing technology-leading products, services and systems to the international construction industry.

SK E&C said on July 24 the contractor struck a cooperation agreement with Hilti to jointly develop technologies and explore business models.

The two companies did not hold an in-person signing ceremony due to social distancing, caused by the spread of COVID-19, but Yoon Huck-noh, head of SK E&C’s high-tech business division and Senior Executive Vice President Reinhard Schindler struck the deal over a teleconference.

Hilti Group, established in 1941, is a global construction materials, components and equipment provider & tool maker with 30,000 employees. Hilti, headquartered in Liechtenstein, posted about 7.56 trillion won in sales in 2019.

The company provides advanced technologies and structural improvement services in the construction, heavy industries, and plant sectors, and its major products include mechanical and chemical anchors, electric tools, laser measurements, fire-proof materials, and channel systems.

SK E&C and Hilti agreed to cooperate in the development of building information modeling (BIM)-based modules, smart construction technologies, and exploration of business models.

Collaboration between the contactor and the different industry player is hoped to raise expectations of the birth of new convergence technologies.

The two companies are now developing construction materials and equipment, to be used for the production of modules for advanced industrial facilities like semiconductor plants, EV battery plants and data centers as well as module engineering methods.

The newly developed construction materials and equipment and engineering methods are to be employed by SK E&C in Korean and foreign construction sites in the second half of this year.

They are expected to raise performances and quality of the construction materials and equipments, thus reducing unit prices and construction period by 30 percent and 40 percent, respectively.

They also plan to continue to cooperate in the development of new business models. They are discussing the establishment of a joint venture designed to produce and supply construction materials and equipments in a long-term perspective.

SK E&C is implementing eco-friendly and new energy business projects through the latest reorganization.

The contractor is strengthening its presence in the market by establishing a “new EPC model” with a focus on smart construction, the contractor’s conventional strength. In particular, the High-tech Business Division plans to implement new businesses such as semiconductor plants, EV battery plants and data centers.

SK E&C’s collaboration with Hilti is prepared in the context of the contractor’s business strategies.

Yoon Huck-noh, head of SK E&C’s high-tech business division, said, “Off-site construction production method will be maxed out thorough the development of modules, a departure from the conventional construction method.”

SK E&C plans to continue to explore new business opportunities in the global market by ramping up strategic partnership with Hilti, he added.

Officials from SK E&C and Hilti hold a joint mock-up session in Busan on June 9. (Photos: SK E&C)