Samsung C&T invests $11 mn in construction robot venture

South Korean construction and engineering company Samsung C&T Corp. has invested 15 billion won ($11.2 million) in the construction robot startup Robotics Construction Technologies (Robocon) to become the latter's largest shareholder.

The company said it made the investment since the use of Robocon’s automated rebar processing robot at construction sites will create great synergy.

Investment banking sources on Monday said Samsung C&T signed a stock purchase agreement on the investment. Rather than make Robocon a direct subsidiary, Samsung C&T formed a structure to invest as a limited partner in a new technology partnership created by Samsung Venture Investment Corp.

Founded in November 2020 as a spin-off of the robotics division of Daehan Networks, an affiliate of Daehan Steel Group, Robocon has as its main product Aron, an industrial robotics solution used in the steel industry. The startup's technology cuts the rate of loss occurring during construction such as through transporting or cutting rebar, from the normal range of 3%-10% during rebar processing to around 1%.

Samsung C&T said it made this investment because applying Robocon’s rebar automated processing technology to construction sites will bring major synergy. Last year, it formed an internal construction robot team and began research and development of such devices.

Last month, the company signed a memorandum of understanding on technical cooperation with Robocon and Hyundai Engineering & Construction to expand the sector's ecosystem.

Write to Jun-Ho Cha at chacha@hankyung.com