Daewoo to Sell Foreign AssetsDaewoo Group plans to sell various assets in foreign countries including very profitable ones. It already announced its plan to reduce the number of subsidiaries from 41 to 10.
A high ranking executive in Daewoo said on December 17, 'Some of our subsidiaries will sell their power plants and cement factories abroad. We will sell assets in their entirety or partially by selling shares.' A cement factory in Sandung, China and a hydro-electric power generating dam in Laos are highly expected to be sold.
Daewoo began to build the cement factory in March, 1994 and finished it in November last year at an expense of 300 million dollars. The price of this factory, which has a yearly capacity of 2.4 million tons, is increasing sharply due to emergency construction demands sparked by the major flooding of the Yangtze River this year.
The Hauay Ho hydro-electric power generating dam with an output capacity of 1.5 million mega watts is also expected to be sold. Daewoo has invested 192 million dollars into the project so far. The dam is scheduled to be finished at the beginning of 1999. Daewoo is responsible for not only its construction but also operations and maintenance for a contract period before handing over the dam to the government of Laos under the Build-Operation-Transfer system.
More in Economy
Jeonse prices soar as less renters are looking to buy
Current account goes into deficit for first time in a year
Innovation galore, from drone delivery to cash on the run
Drone-like taxis may soon crowd the skies
Supersized supplementary budget is proposed