GS Engineering & Construction (GS E&C), one of South Korea’s largest construction firms, has announced plans to sell its Spain-based water treatment subsidiary, GS Inima Environment, in a move aimed at streamlining its business portfolio.

The decision was disclosed in a regulatory filing on Friday. According to the company, Global Water Solution, a wholly owned unit that holds the entire stake in GS Inima, resolved at a board meeting held the previous day to proceed with the divestment.

The sale, valued at an estimated 1.67 trillion won ($1.2bn), is expected to close by February 2027. While the company confirmed the timeline and value of the transaction, it has not disclosed details regarding the buyer or the specific deal structure.

GS E&C described the sale as a strategic step to sharpen its focus on core operations and restructure its portfolio.

GS Inima was acquired by GS E&C in 2012 and has since become central to the firm’s overseas growth, particularly in the Middle East’s desalination market. Notable projects under its management include a 920bn won seawater desalination plant in the United Arab Emirates awarded in 2023.

Industry observers suggest that a Middle Eastern energy company is the most likely buyer, amid a surge in global demand for water infrastructure assets.